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Postal Life Insurance (PLI) is a life insurance scheme that started in 1884 and is one of the oldest in India. The PLI is managed by the Department of Posts, under the Government of India. The Postal Department offers two types of life insurance schemes, Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI). Read on to know more:
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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.
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 funds of life insurance accounted for about 10% of the total household savings. The Indian Government approved the suggestions of the committee and helped extend insurance coverage to rural areas. Because of the extensive post office networks in rural areas and low operational costs involved, reaching out to individuals in such areas was 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.
Term Plans
Postal Life Insurance covers a wide range of Central and State Government employees and other people working in public sector institutions and organizations. As of now, Postal Life Insurance scheme covers-
| Parameters | Details |
| Eligible Persons | All employees of
|
| Entry Age of Person |
|
| Sum Assured | Min: Rs. 20,000 Max: Rs. 50 lakh |
| Types of policies offered by PLI | There are six type of schemes:
|
Here is a list of all the benefits of opting for the Postal life 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 6 month’s and 12 month’s policy.
Easy and Quick Claims: Due to the postal life insurance scheme’s centralised accounting facility, the claims are processed in an easy and hassle-free manner.
No Charges on Transfer: You can transfer your post office insurance scheme to any circle within the country at no additional charges.
Premium Payment Mode:You can pay your PLI premiums on an annual, semi-annual, or monthly mode on any working day before the due date.
Income Tax Benefits: The Postal Life Insurance scheme offer tax benefits on the premiums paid under section 80C of the Income Tax Act.
Following are the advantages of various plans under Postal life insurance scheme:
Superlative Returns: Postal Life Insurance scheme (PLI) offers the highest bonus rates, on payment of the lowest premium, when compared to any other life insurer in India.
Modification and Appointment of Nominee: PLI schemes allows the appointment of a nominee for the policy. Also, the policyholder can 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: Policy can be revived on any number of occasions during the entire term of the policy. However, a period of consecutive 5 (five) years should not have passed from the date of 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: If the documents of the policy either get destroyed or misplaced, or get damaged, then in such cases, duplicate policy documents can also be issued from the Department.
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.
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:
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 | |
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
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 | |
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 |
|
| 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 | |
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.
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.
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Here are the bonus rates of Postal Life Insurance schemes:
| Types of Insurance Plan | Bonus Rates of PLI Scheme |
| Whole Life Assurance (Suraksha policy) | Rs. 76/- per 1000 SA per year |
| Convertible Whole Life Assurance (Suvidjha policy) | Rs. 76/- per 1000 SA per year (for Whole life insurance if not converted to EA i.e., endowment assurance) Bonus of endowment assurance will be paid on conversion |
| Endowment Assurance (Santosh) | Rs. 52/- per 1000 SA per year |
| Joint Life Assurance (Yugal Suraksha policy) | Rs. 52/- per 1000 SA per year |
| Anticipated Endowment Assurance (Sumangal policy) | Rs. 48/- per 1000 SA per year |
| Bal Jeevan Bima – Children Policy | Rs. 52/- per 1000 SA per year |
| Financial Year | PLI | ||
| Rate of Bonus per thousand of sum assured | |||
| Whole Life Assurance (WLA) | Endowment Assurance (EA) (including Joint life & children policies) | Anticipated Endowment Assurance (AEA) | |
| 2009-10 | 85 | 60 | 55 |
| 2010-11 | 85 | 60 | 55 |
| 2011-12 | 85 | 58 | 53 |
| 2012-13 | 85 | 58 | 53 |
| 2013-14 | 85 | 58 | 53 |
| 2014-15 | 85 | 58 | 53 |
| 2015-16 | 85 | 58 | 53 |
| 2016-17 | 85 | 58 | 53 |
| 2017-18 | 85 | 58 | 53 |
| 2018-19 | 85 | 58 | 53 |
| 2019-20 | 85 | 58 | 53 |
| 2020-21 | 76 | 52 | 48 |
| 2021-22 | 76 | 52 | 48 |
| 2022-23 | 76 | 52 | 48 |
| 2023-24 | 76 | 52 | 48 |
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).
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
| Sl. No. | Nature of Work | Qualifying description | Service standards (in days) |
| 1. | Issue of acceptance letter and policy bond | Time taken from the receipt of completed documents | 15 |
| 2. | Revival/Conversion | Time taken from the receipt of
completed documents |
15 |
| 3. | Loan, change of nomination, assignment of policy, issue of duplicate policy bond. | Time taken on receipt of request | 10 |
| 4. | Change of address | Time taken on receipt of request | 5 |
| 5. | Maturity claim/
surrender/paid up value/survival benefit payment |
Time taken from the receipt of
completed documents |
15 |
| 6. | Settle of PLI/RPLI death claims | With/ without nomination (Time taken from the receipt of completed documents) | 30 |
| Involving investigation | 90 |
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.
The insured/claimant can provide the concerned Central Processing Centre (CPC) with their claim form along with the original policy bond, premium receipt book and loan repayment record book, if any etc. The claims will be sanctioned or rejected after due examination by the competent authority, and the insured/claimant will receive their payment electronically or through 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.
The key takeaways of post office 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 T&Cs of the policy.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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