Postal Life Insurance (PLI) -Plans & Benefits

Public employees have several government-backed insurance options available to them. One such scheme is the Postal Life Insurance (PLI) scheme. The Postal Life Insurance, or PLI, scheme is an insurance policy established in 1884 and is currently managed by the Department of Posts under the Government of India. The primary purpose of the scheme is to ensure the well-being of government employees through adequate life insurance coverage. With the PLI scheme, they can avail life insurance benefits at a much lower price as compared to policies available in the market.

Similar to PLI, there is a Rural Postal Life Insurance (RPLI) plan to provide financial coverage to the people living outside cities and towns. So, let us take a look at RPLI and PLI eligibility criteria and features:

 

Eligibility Criteria & Features of Postal and Rural Life Insurance

Note: The maximum entry age for certain rural and Postal Life Insurance may vary based on the policy term or type of insurance plan chosen.

Now that you know Postal Life Insurance meaning and eligibility criteria, let’s take a deep dive into its features.

Features of Postal Life Insurance

Here are a few features of PLI schemes:

 

• Nomination Facility

  The primary policyholder can enlist his/her beneficiaries as nominees under the scheme. Further, they can also make changes to this nomination list as and when needed.

• Loan Facility

  Policyholders can even take a loan against this scheme as PLI plans can be pledged as collateral. However, this can be done only after 3 years of maturity (for Endowment Assurance plan) and 4 years of the policy period (for Whole Life Insurance plan).

• Policy Renewal

  Policyholders can revive a lapsed Postal Life Insurance plan for government employees under the following conditions:

1. A policy that is less than three years old and lapsed after six successive premium non-payments

2. A policy that is more than three years old and lapsed after 12 successive premium non-payments.

• Duplicate Policy

  Policyholders can get a duplicate policy document if they lose/misplace/damage the original.

• Policy Conversion

  Policyholders can switch from the Whole Life Assurance plan to the Endowment Assurance Plan and vice versa.

Benefits of Postal Life Insurance

Some benefits of PLI schemes are listed below:

 

• Policyholders can avail tax benefits under Section 88 of the Income Tax Act, 1961

• The premium for PLI schemes is much affordable as compared to other insurance plans available in the market

• Policyholders can track payment of premium (for loan transactions) with the passbook facility

• Premium is paid either monthly, half-yearly, or annually

• If advance premium payments are made for a policy period of six months, policyholders can avail a discount worth 1 per cent of the premium value

• If advance premium payments are made for a policy period of 12 months, policyholders can avail a discount of 2 per cent of the premium value

• Policyholders can nominate beneficiaries under the scheme

• The PLI scheme is centralised, which makes the claims process easy and quick

Types of Postal Life Insurance Schemes

The following are the insurance plans offered under Postal Life Insurance:

 

1. Whole Life Insurance (Suraksha)

The Whole Life Insurance (Suraksha) offers a sum assured amount along with a bonus (if any) to the insured individual as a maturity benefit. In case of the insured’s sudden death, the sum assured amount along with the bonus (if any) is paid to the beneficiaries.

 

• Eligibility Criteria: The minimum entry age is 19 years and the maximum age limit is 55 years

• Sum Assured Amount: The minimum sum assured offered is ₹20,000 and the maximum is ₹50 lakh

• Policy Conversion: The Whole Life Assurance plan can be converted to Endowment Policy before the insured turns 59 years of age and after completing one year since policy inception

• Loan Facility: After completion of 4 years

• Surrender Option: After completion of 3 years

• Surrender Terms: Not eligible for bonus if policy is surrendered before completing five years. The proportionate bonus on the reduced sum assured is paid out if the plan is surrendered.

• Premiums: May vary based on the age of the insured, sum assured, etc.

   

2. Joint Life Insurance (Yugal Suraksha)

If you are eligible for a Postal Life Insurance plan, the benefits can be extended to the spouse with a joint life insurance plan. This way, both spouses can avail the benefits of the policy while paying a single premium amount.

 

• Eligibility Criteria: The minimum entry age is 21 years and the maximum age limit is 45 years

• Sum Assured Amount: The minimum sum assured offered is ₹20,000 and the maximum is ₹50 lakh

• Loan Facility: After completion of 3 years

• Surrender Option: After completion of 3 years

• Surrender Terms: Not eligible for a bonus if the policy is surrendered before completing 5 years. Proportionate bonus on the reduced sum assured is paid out if the plan is surrendered.

• Premiums: May vary based on the age of the insured, sum assured, etc.

• Policy Term: The minimum policy period is 5 years and the maximum is 20 years

   

3. Endowment Insurance (Santosh)

The Endowment plan is much similar to the Whole Life Insurance plan. Here, the insured individual will be provided with the sum assured amount along with the collected bonus (if any) as maturity benefits. Also, the beneficiaries of the policy will receive the death benefits along with the bonus amount (if any) in case of the insured individual’s sudden death.

 

• Eligibility Criteria: The minimum entry age is 19 years and the maximum age limit is 55 years

• Sum Assured Amount: The minimum sum assured offered is ₹20,000 and the maximum is ₹50 lakh

• Loan Facility: After completion of 3 years

• Surrender Option: After completion of 3 years

• Surrender Terms: Not eligible for a bonus if the policy is surrendered before completing 5 years. Proportionate bonus on the reduced sum assured is paid out if the plan is surrendered after 5 years.

• Premiums: May vary based on the age of the insured, sum assured, etc.

   

4. Convertible Whole Life Assurance (Suvidha)

A Convertible Whole Life Assurance policy can be converted into an Endowment plan after the completion of five years. However, at the time of conversion, the insured individual should be below the age of 55.

 

• Eligibility Criteria: The minimum entry age is 19 years and the maximum age limit is 50 years

• Sum Assured Amount: The minimum sum assured offered is ₹20,000 and the maximum is ₹50 lakh

• Policy Conversion: The Convertible Whole Life Assurance plan can be converted to Endowment policy after 5 years, but not later than 6 years, since policy inception

• Loan Facility: After completion of 4 years

• Surrender Option: After completion of 3 years

• Surrender Terms: Not eligible for a bonus if the policy is surrendered before completing 5 years

• Premiums: May vary based on the age of the insured, sum assured, etc.

   

5. Anticipated Endowment Assurance (Sumangal)

Anticipated Endowment assurance is a money-back policy best suited for people who might need periodical returns. The survival benefits are paid to the insured periodically. In case of the unfortunate death of the insured, the full sum assured with an accrued bonus is paid to the beneficiaries or legal heir.

 

• Eligibility Criteria: The minimum entry age is 19 years. The maximum age limit is 40 years for a 20-year policy term & 45 years for a 15-year policy term.

• Sum Assured Amount: The maximum sum assured offered is ₹50 lakh

• Premiums: May vary based on the age of the insured, sum assured, etc.

• Policy Term: 15 and 20 years

• Survival Benefit: Paid in the following way:

This insurance policy offers coverage to the policyholder’s children where no medical examination is needed and the cover begins from day one.

• Children between the age of 5 years to 20 years

• Policyholder (the parent) should not be over 45 years of age

• Two children of the policyholder can gain coverage

• Sum Assured Amount: The maximum sum assured offered is ₹3 lakh or the sum equal to the coverage amount of the parent, whichever is less

• Surrender Option: Not available

What is Rural Postal Life Insurance (RPLI)?

Rural Postal Life Insurance is an insurance scheme introduced to provide financial security to the general public and weaker sections in rural regions. Due to the recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee), the Postal Life Insurance scheme was extended to cover rural regions of India.

The primary objective of the RPLI scheme is to offer insurance cover to low-income groups and working women in rural areas. Such an insurance plan enables the rural populace to secure adequate coverage at a low premium price.

Benefits of Rural Postal Life Insurance Scheme

Here are the key advantages of the Rural Postal Life Insurance scheme:

 

• The RPLI post office scheme can be converted to endowment plans to avail more features and benefits

• Policyholders can get a loan facility after completing 3-4 years since policy inception but this facility may not be available for every RPLI policy

• The nomination for the rural post office life insurance plan can be changed as per the insured’s needs

• In case the RPLI post office scheme lapses due to non-payment of premiums, the policy can be revived to continue coverage

Types of Rural Postal Life Insurance Schemes

Let’s look at the various types of rural postal life insurance schemes available:

1. Whole Life Assurance (Gram Suraksha)

The Whole Life Assurance plan offers coverage to the insured until they reach 80 years of age. The policyholder can avail a maturity benefit while financially securing their dependents in case of an unfortunate event.

 

• Eligibility Criteria: The minimum age limit is 19 years and the maximum age criteria is 55 years

• Sum Assured Amount: The minimum sum assured offered is ₹10,000 and the maximum is ₹10 lakh

• Policy Conversion: The Whole Life Assurance plan can be converted to Endowment policy before the insured turns 59 years of age and after completing one year since policy inception

• Loan Facility: After completion of 4 years

• Surrender Option: After completion of 3 years

• Premiums: May vary based on the age of the insured, sum assured, etc.

2. Convertible Whole Life Assurance (Gram Suvidha)

The Convertible Whole Life Assurance plan provides the key benefit of convertibility to Endowment insurance after completion of 5 years along with a death and maturity benefit.

 

• Eligibility Criteria: The minimum age limit is 19 years and the maximum age criteria is 50 years

• Sum Assured Amount: The minimum sum assured offered is ₹10,000 and the maximum is ₹10 lakh

• Policy Conversion: The Convertible Whole Life Assurance plan can be converted to Endowment policy after 5 years, but not later than 6 years, since policy inception

• Loan Facility: After completion of 4 years

• Surrender Option: After completion of 3 years

• Premiums: May vary based on the age of the insured, sum assured, etc.

3. Endowment Assurance (Gram Santosh)

The Endowment Assurance policy offers the sum assured and the accrued bonus on a pre-decided maturity age, which are 35, 40, 45, 50, 55, 58 & 60 years of age.

 

• Eligibility Criteria: The minimum age limit is 19 years and the maximum age criteria is 55 years

• Sum Assured Amount: The minimum sum assured offered is ₹10,000 and the maximum is ₹10 lakh

• Loan Facility: After completion of 3 years

• Surrender Option: After completion of 3 years

• Premiums: May vary based on the age of the insured, sum assured, etc.

4. 10 Years Rural PLI (Gram Priya)

The 10-year Rural Postal Life Insurance policy provides the insured with a short money-back scheme and assured monetary assistance in case of the policyholder’s demise.

 

• Eligibility Criteria: The minimum age limit is 20 years and the maximum age criteria is 45 years

• Sum Assured Amount: The minimum sum assured offered is ₹10,000 and the maximum is ₹10 lakh

• Premiums: May vary based on the age of the insured, sum assured, etc

• Policy Term: 10 years

• Survival Benefit: Paid in the following way:

• After 4 years - 20%

• After 7 years - 20%

• After 10 years - 60% (with accrued bonus)

5. Anticipated Endowment Assurance (Gram Sumangal)

The Anticipated Endowment Assurance policy offers the policyholder with periodical payouts throughout the policy period and provides a life cover against mishaps.

 

• Eligibility Criteria: The minimum age limit is 19 years. The maximum age criteria is 40 years for a 20-year policy term & 45 years for a 15-year policy term.

• Sum Assured Amount: The maximum sum assured offered is ₹10 lakh

• Premiums: May vary based on the age of the insured, sum assured, etc.

• Policy Term: 15 and 20 years

• Survival Benefit: Paid in the following way,

6. Children Policy (Bal Jeevan Bima)

The Bal Jeevan Bima is an insurance policy that secures the children of the policyholders in the event of an unforeseen mishap. The risk cover is offered to the children from day one since policy inception with no medical check-up required.

 

• Eligibility Criteria:

• Children between the age of 5 years to 20 years

• Policyholder (the parent) should not be over 45 years of age

• Two children of the policyholder can gain coverage

• Sum Assured Amount: The maximum sum assured offered is ₹1 lakh or the sum equal to the coverage amount of the parent, whichever is less

• Surrender Option: Not available

How to Buy Postal & Rural Life Insurance?

You cannot avail the RPLI and PLI plans online. So, to purchase the Postal and Rural Life Insurance plans, you can refer to the following individuals:

 

• Gramin Dak Sevaks at the rural post office

• Field officers of Postal Life Insurance plans

• Direct agents

• Employees of the post office such as the postman, clerical staff, etc.

Postal Life Insurance Statistics

Rural Postal Life Insurance Statistics

Bonus Rates of Postal Life Insurance

The following table gives an overview of the PLI bonus rates:

Bonus Rates of Rural Postal Life Insurance

The following table gives an overview of the RPLI bonus rates:

Postal Life Insurance Forms

The following PLI forms are available for download:

 

• PLI Form

• Child Policy Proposal Form

• PLI Medical Form

• Whole Life Assurance, Convertible Whole Life Assurance, Endowment Assurance, and AEA Form

• Yugal Suraksha Form

• Nomination Form

• Death Claim Form

• Revival of Lapsed Policy Form

• Maturity Claim Form

• Survival Benefit Claim Form

• Conversion Form

• Loan Application Form

• Personal Bond of Indemnity

Postal Life Insurance Premium Calculator

Applicants can calculate the premium amount before investing in the PLI scheme by using the PLI premium calculator. The tool only needs a few details to estimate the premium amount that the policyholder will have to pay to avail the benefits under the scheme. These details include:

 

• Applicant’s age

• Type of PLI scheme needed

• Sum assured

• Date of birth

• Spouse’s date of birth (for Yugal Suraksha scheme)

• Age of the insured when the policy matures

Postal Life Insurance Customer Guidelines

Government employees, when investing in the PLI scheme, should be mindful of the following guidelines.

 

• PLI Scheme Details

The Postal Life Insurance plan details such as the scheme number will be available on the document. The PLI scheme details can be used as a reference for future discussions, to make premium payments and to identify the PLI scheme.

• Policy Bond

The PLI plan bond is a vital document and must be kept safely as it might be needed during claim settlement. In case of loss or damage to the bond document, you can acquire a duplicate copy.

• Pay Premiums Regularly

The premium payments towards the PLI scheme should happen on time. Any discrepancy in the same can lead to PLI policy lapse, forcing you to lose out on the coverage benefits. Ideally, the premium payment should be done on the first day of each month.

• Deduction from Pay

Premiums towards the PLI scheme can be deducted directly from the pay. However, the initiation of this facility needs approval from the employer. Once the facility is put in place, the premium amount is deducted regularly from the salary, and the same will be mentioned in the salary slip.

• Transfer of Policy

If the employee has to transfer to another post, the PLI scheme can be transferred to another circle within the country.

• Payment Modes

The premiums on the PLI scheme can be paid via cheque or cash. You shall also find Postal Life Insurance (PLI) online payment facilities along with over-the-counter payments at the post office.

• Contact Details

The applicant has to provide accurate contact and personal information as it can affect the claim settlement process.

• Policy Lapse

The PLI scheme will lapse when:

• The policy is less than three years old and there are six successive non-payment of premiums

• The policy is more than three years old and there are 12 successive non-payment of premiums

• Policy Revival

• If the policy lapses due to the reasons stated above, then the policyholder can revive it by submitting a formal request to the Chief Postmaster General. Once the pending premiums are paid with interest, the policy is activated.

If the policy lapses due to the reasons stated above, then the policyholder can revive it by submitting a formal request to the Chief Postmaster General. Once the pending premiums are paid with interest, the policy is activated.

• Loan Against Policy

Policyholders can take a loan against the PLI scheme after completing three years of the policy term.

• Contact the Officials at PLI

Policyholders can write a letter or call the authorities at PLI to submit their grievances related to the schemes. The same can be done via sending an email at pli.dte@gmail.com

Citizen's Charter

Things to Remember About Postal & Rural Life Insurance

Here are a few things to keep in mind regarding the PLI and RPLI scheme:

 

• Even though PLI and RPLI are gaining recognition, the plan is still not available at all post offices. Only a few selected postal offices with a PLI or an RPLI division offer this plan. Moreover, you must visit the post office to purchase the plan as the option for Postal Life Insurance (PLI) online isn’t available.

• Government employees can continue with the PLI scheme even after they leave the job

• Premiums can be paid on a monthly, half-yearly, or annual basis

• You can surrender the policy at any point in time. The Endowment plans can be surrendered after completing three years, whereas the Whole Life Insurance plans can be surrendered after completing four years

Conclusion

Post Life Insurance is quite an attractive plan, especially if you are a government employee. It is one of the most affordable and manageable insurance options that will cater to your financial and investment needs.

Those who cannot avail this service can still consider buying a life or term insurance plan to safeguard the financial needs of their loved ones. You can browse the term insurance plans available on Bajaj Markets that offer customised comprehensive coverage to suit your needs, swift claim settlement, and so much more.

Protect the financial future of your loved ones with term plans at Bajaj Markets, today!