Postal Life Insurance

What is Postal Life Insurance?

PLI (Postal Life Insurance) was introduced by the Department of Posts, Ministry of Communications, in 1884, as a welfare scheme for the benefit of Postal Department employees. In 1894, it was the first insurance company to extend its coverage to female employees. Over the years, PLI has grown substantially and extended insurance coverage to all Central and State Government Employees. Also, it is currently catering services to the employees of various government departments such as Central & State Government Employees, Defense & Para-Military Services, Banks, Local Bodies, Public Sector Undertakings, Educational Institutes and Professionals like Chartered Accountants, Engineers, Doctors, Lawyers, MBA, etc. and the company’s employees listed with Bombay Stock Exchange (BSE)/ National Stock Exchange (NSE), all graduates and diploma holders from Universities/Institutions recognized by Central/State Governments.

With PLI, you can easily get life insurance benefits at affordable prices compared to other life insurance plans.

Same as PLI, Rural Postal Life Insurance (RPLI) was introduced by the Department of Posts to offer financial coverage to people living in rural areas.

What is Rural Postal Life Insurance?

Rural Postal Life Insurance (RPLI) started its operations in 1995 to extend life insurance coverage to individuals residing in rural areas. In 1993, the Malhotra Committee observed that only 22% of the Indian population had been insured, and life insurance funds accounted for about 10% of the total household savings. The Indian Government approved the committee's suggestions and helped extend insurance coverage to rural areas. The extensive post office networks in rural areas and the low operational costs made reaching out to individuals in such areas quite convenient.

This welfare scheme aims to offer insurance coverage to the rural population and to provide benefits to the weaker sections of society and female workers. It also works to spread awareness about insurance in rural areas.

What Is The Eligibility Criteria Of Postal Life Insurance?

Postal Life Insurance covers many Central and State Government employees and others working in public sector institutions and organizations. As of now, Postal Life Insurance scheme covers-

What Are The Benefits of Postal Life Insurance?

Here is a list of all the benefits of opting for the Post Office Term Insurance scheme in India:

• Discount on Premiums: By making a PLI premium payment in advance, you can claim a discount of 1% and 2% on a 6-month and 12-month policy, respectively.

• Easy and Quick Claims: The postal life insurance scheme’s centralised accounting facility processes claims easily and hassle-free.

• No Charges on Transfer: You can transfer your post office insurance scheme to any circle within the country at no additional charge.

• Premium Payment Mode: You can pay your PLI premiums annually, semi-annually, or monthly on any working day before the due date.

• Income Tax Benefits: The postal life insurance scheme offers tax benefits on the premiums paid under section 80C of the Income Tax Act.

What Are The Features of Postal Life Insurance?

Following are the advantages of various plans under Postal life insurance scheme:

• Superlative Returns: The postal life insurance scheme (PLI) offers the highest bonus rates on payment of the lowest premium compared to any other life insurer in India.

• Modification and Appointment of Nominee: PLI schemes allow the appointment of a nominee for the policy. The policyholder can also change the nominee during the policy term.

• Passbook Facility: The policyholder can easily track the premium payments towards the pli scheme and loan transactions using the passbook facility.

• Loan facility: The policyholder is permitted to easily avail loan against his/her policy through the Department or through any other financial institution by assigning the policy.

• Revival of lapsed policy: The policy can be revived on several occasions during the entire term. However, five (five) consecutive years should not have passed from the date of the first unpaid premium.

• Policy Conversion: The policyholder can convert his/her whole life assurance policy to an endowment assurance policy. This switch can be made between different endowment assurance plans per the pre-defined rules and regulations.

• Issuance of duplicate policy papers: The department can also issue duplicate policy documents if the originals are destroyed, misplaced, or damaged.

• Multiple Policies: Policyholders can take one or more than one policies offered under Postal Life Insurance scheme provided the aggregate sum assured under all the policies is not less than Rs. 20,000 and not more than Rs. 50 lakh.

What Are The Types Of Policies Offered By Postal Life Insurance?

The organization offers six traditional PLI schemes that range from whole life assurance plan to children insurance plan. Let’s look at the postal life insurance scheme details:

1. Postal Life Insurance Plan – Whole Life Assurance Policy (Suraksha)

   Under this post office insurance scheme, the assured amount with accumulated bonus is paid to the policyholder either on attaining 80 years or to their legal assignees or representatives on the policyholder’s death (whichever occurs earlier).

   Parameters	Minimum	Maximum
   Entry Age	19 years	55 years
   Sum Assured	Rs. 20,000	Rs. 50 Lakhs
   Policy Term/Maturity	80 years or death, whichever is earlier
   Policy Conversion	The plan can be converted into Endowment Assurance up to the maximum age of 59 years
   Premium Payment ceasing Age	May be opted as 55, 58 or 60 years of age of insurant
   Loan Facility	Available after 4 years
   Surrender	After 3 years (no bonus is payable if surrendered before five years)
   Bonus rate	Rs. 76/- per Rs. 1000 SA /year as on 01.03.2023

2. Postal Life Insurance Plan – Convertible Whole Life Assurance Policy (Suvidha)

   A convertible whole life assurance plan comes with an option to convert the plan to an endowment assurance plan after completion of five years of the opting plan (but before completion of 6th year). In case of the policyholder’s death, the nominee/assignee or the legal heir shall be paid the sum assured with the accrued bonus.

   Parameters	Minimum	Maximum
   Entry Age	19 years	55 years
   Sum Assured	Rs. 20,000	Rs. 50 Lakhs
   Policy Conversion	It can be converted into an endowment assurance plan after 5 years but not after 6 years of taking the policy. The plan will be considered as whole life assurance if not converted into Endowment Assurance Plan.
   Loan Facility	Available after 4 years
   Surrender	After 3 years (no bonus is payable if surrendered before five years)
   Bonus rate	Rs. 76/- per Rs. 1000 SA /year as on 01.03.2023 *

   *Bonus of endowment assurance will be paid in case of conversion of the policy

3. Postal Life Insurance Plan – Endowment Assurance Policy (Santosh)

   This life insurance plan offers the proponent to get life coverage for a pre-determined term and get sum assured with accrued bonus at the pre-determined maturity age (35 to 60 years of age).

   Parameters	Minimum	Maximum
   Entry Age	19 years	55 years
   Sum Assured	Rs. 20,000	Rs. 50 Lakhs
   Loan Facility	Available after 3 years
   Maturity at predetermined age	35 years 40 years 45 years 50 years 55 years 60 years
   Surrender	After 3 years (no bonus is payable if surrendered before five years)
   Bonus rate	Rs. 52/- per Rs. 1000 SA /year as on 01.03.2023

4. Postal Life Insurance Plan – Anticipated Endowment Assurance Policy (Sumangal)

   The Sumangal policy is a money-back plan with a maximum life cover of Rs. 50 Lakhs. This scheme is suitable for individuals who need returns periodically. In this, survival benefits are paid periodically.

   Parameters	Minimum	Maximum
   Entry Age	19 years	40 years for 20 years term plan 45 years for 15 years term plan
   Sum Assured	Rs. 20,000	Rs. 50 Lakhs
   Policy Term	15 years and 20 years
   Survival Benefits	For 15-year term policy- 20% of sum assured on completion of 6th, 9th and 12th year of policy and balance 40% with bonus on maturity.
   	For 20-year policy- 20% of sum assured on completion of 8th, 12th and 16th year of policy and balance 40% with bonus on maturity.
   Bonus Rate	Rs. 48/-per Rs. 1000 SA per year as on 01.03.2023

5. Postal Life Insurance Plan – Joint Life Assurance Plan (Yugal Suraksha)

   
   A Yugal Suraksha Plan (Joint Life Assurance plan) is meant where at least one of the spouses is eligible for a Postal Life Insurance scheme. Under this, life coverage is given to both of the spouses to the extent of Sum Assured and bonuses are accrued with a single premium.

   Parameters	Minimum	Maximum
   Entry Age (for both spouses)	21 years	45 years*
   Sum Assured	Rs. 20,000	Rs. 50 Lakhs
   Policy Term	5 years	20 years
   Loan Facility	After 3 years
   Surrender	After 3 years (no bonus is payable if surrendered before five years)
   Bonus Rate	Rs. 52/- per Rs. 1000 SA per year as on 01.03.2023

   *Maximum age of the elder assured should not be above 60 years at the time of maturity and the couple’s age should be between 21 to 45 years.

6. Postal Life Insurance Plan – Children Policy (Bal Jeevan Bima)

   This scheme is meant to insure the children of individuals who have a Postal Life Insurance scheme.

   Parameters	Minimum	Maximum
   Insurance coverage Eligible for	Max 2 children of policyholders
   Entry Age for child	5 years	20 years
   Entry Age for Parent (Policyholder)	-	45 years
   Sum Assured	Rs. 20,000	Rs. 3 Lakhs or equivalent to the SA of the parent (whichever is less).
   Medical Check-up	Not necessary for child
   Loan Facility	Not Available
   Surrender	Not Available
   Bonus Rate	Rs. 52/- per Rs. 1000 SA per year as on 01.04.2023

   *No premium amount to be paid on policyholder’s death (parent). Full Sum Assured along with accrued bonus shall be paid on completion of term.

What Are The Postal Life Insurance Scheme Bonus Rates 2023-24?

Here are the bonus rates of Postal Life Insurance schemes:

What Are The Bonus Rates of Postal Life Insurance Over The Years?

What Are The Premium Payment Mode of Postal Life Insurance Schemes?

Below mentioned are the premium payment modes of Postal Life Insurance:

• The policyholders can pay their PLI premiums at any nearest post office across India through cash or cheque.

• In case of cash payments, the life assured is provided with a premium payment receipt book (PRB) where the premium deposit receipt can be affixed.

• The PLI premium deposit facility through pay deduction is also available to Central and State Government employees, employees of defense personnel and paramilitary forces.

• Policyholders can also pay premium through these ways:

  • Online at the customer portal, of the official PLI website through credit/debit card, UPI/BHIM, net banking and online wallets.

  • Cashless transaction through IPPB(India Post Payments Bank) application, Gramin Dak Sewa (GDS) using Micro ATM, and Standing Instructions (SI).

Why Use the Postal Life Insurance Premium Calculator?

The postal life insurance premium calulator is an online tool that helps you calculate the premiums amount you would need to pay for the desired life cover. Let us take a look at the benefits of using the PLI scheme calculator online:

• The PLI Calculator is convenient, easy to use, free of cost.

• You don’t need to register or log in to the website to access PLI calculator

• The PLI calculator saves time and energy spent in manually calculating the premiums payable

• You always get accurate results no matter how many times you calculate

• You can use the PLI calculator from anywhere in the world at any time

Citizen Charter

How Can You Buy a Postal Life Insurance Policy?

You can buy any of the above policies from the following individuals:

• Employees of the Department of Posts like the Inspector staff, Clerical staff, Postmen etc.

• Field Officers of Postal Life Insurance.

• Gramin Dak Sevaks of Branch Post Office / Gramin Dak Ghar.

• Direct Agents.

What Is The Claim Settlement Process of Postal Life Insurance?

To ensure a hassle-free process, the insured/claimant can provide the concerned Central Processing Centre (CPC) with their:

• Submit the claim form along with:

  • Original policy bond.

  • Premium Receipt Book (PRB).

  • Loan repayment record, if applicable.

• Claims are reviewed and processed within the stipulated time (15-90 days, depending on claim type).

• Receive the claim amount electronically or via cheque.

The policyholders are also offered many additional facilities like:

• Revival of his/her lapsed policy

• Change of nominee

• Assignment of Policy to any financial institution for a loan

• Conversion of Whole Life Assurance to Endowment Assurance and of Endowment Assurance to other Endowment Assurance (for change in policy term).

• Issue of Duplicate Policy Bond.

Key Takeaways of Postal Life Insurance Scheme

The key takeaways of post office term insurance scheme in India are as follows:

• Customer prefer buying Post office insurance schemes because of their flexibiity and several benefits

• You can change the name of the nominee at any point during the cover term

• In case of burned, lost, or torn policy bond, a duplicate policy bond can be issued 

• A lapsed policy can be revived in case of six unpaid premiums for active policy of less than 3 years and for twelve unpaid premiums for active policy of more than 3 years

• You can convert your policy from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per the policy's T&Cs.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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