Postal Life Insurance Plans, Features, Benefits & Details Online

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Postal life insurance

Having started on 1st February 1884, Postal Life Insurance is the oldest insurance scheme of India that was introduced under the Queen Empress of India with the approval of the Secretary of State (for India) to Her Majesty. Whereas it started its journey as a welfare scheme for the benefit of postal employees later its benefits are extended to the employees of the Telegraph Department in 1888. One remarkable thing about it is that from 1894, the Postal Life Insurance scheme also started to cover the female employees of posts and telegraph department whereas no other insurance company in the then market was offering the same facility. Since then, PLI has been servicing its consumers faithfully and winning the trust of the people successfully, as per the report, PLI has grown to more than 50 Lakh policies as of 31.03.2021.

Postal Life Insurance Scheme offers life insurance cover with high returns at an affordable premium rate. It now covers the following employees.

Central & State Governments
Defense and Para-Military Services
Bankers working in Nationalized banks and associate banks, Reserve Bank of India, foreign banks, regional rural banks, scheduled commercial banks including private sector banks.
Educational Institutions affiliated to recognized boards such as CBSE, ICSE, State Boards, open schools. deemed universities, etc.
Local Bodies, professionals such as doctors, engineers, chartered accountants, MBAs, lawyers, etc. management consultants, charted accountants associated and registered with the Institute of Chartered Accountants of India.
Architects and lawyers registered with the Bar Council of India or State.
Employees of companies listed with National Stock Exchange (NSE) / Bombay Stock Exchange (BSE) in IT, Banking and Finance, healthcare, pharma, energy, power, telecom infrastructure sector, etc.
Defense services and para military forces.

Postal Life Insurance has also come up with certain plans to special offer benefits and facilities related to the rural people. Now the upper limit of the insurance has been extended to Rs. 50 lakhs to combat the growing inflation rate to offer a wider coverage according to the convenience of the people.

Key Features & Benefits of Postal Life Insurance

All the Postal Life Insurance schemes including the rural ones have come up with a sack full of benefits and special features. To know about it more, have a look at the following mentions.

Maximum Returns – In comparison to the other insurance companies, Postal Life Insurance schemes offer the highest coverage for policy and the right bonus amount whereas, for it, you need to pay an affordable premium.

Nomination Facility – Under this scheme, the policyholder can not only nominate his/her beneficiary or nominee as per his/her choice but also can make changes to the nomination, if necessary.

Loan Facility – One can also avail of the loan facility on the security of the policy, only if the policy has been in force for at least 3 years. The maximum admissible amount of loan will be 90% of the surrender value of the policy which will be subject to the condition that the amount of loan should not become less than Rs.1000.

Revival of Discontinued Policy – In the case policy has lapsed or become void and is time-barred for automatic reinstatement, the main policyholder may apply for the revival of this policy to the Postmaster General/ Head of Division/ Postmaster of the nearest Central Processing Centre (GPO/ Head Post Office) before the policy has matured. This is subject to the terms and conditions of PLI.

Reinstatement of Policy – In case of the policy has become void and the insured person wants an automatic reinstatement of the policy, he can deposit all the arrears of premium/ premia up to date of payment along with the prescribed interest at any post office. Reinstatement can only be done within the period of 6 months or 1 year from the date of the first unpaid premium.

Surrender Value – If this policy has been in force for at least 3 years, it can be surrendered for payment on a reduced sum assured up to the date for which premiums have been paid. However, the surrender Value amount will be less compared to premiums paid.

Death Benefit – The death benefit under this policy is available having certain limits as per the duration of the active policy if the policy has been taken under non-medical ground. Here are the limits as follows.

1. If the death of the insured person occurs before the completion of one year of the policy from the date of acceptance, then only 35% of the sum assured will be payable.
2. If the death of the insured occurs after one year but before completion of two years from the date of acceptance, then only 60% of the sum assured will be paid to the nominee or the legal heir.
3. If the death of the insured occurs after two years but before completion of three years from the date of acceptance, then 90% of the sum assured will be paid.

Income Tax and Rebate – Income tax rebate can be availed of under Section 80C of the I. T. Act towards the premiums paid. Also, a special rebate is available as per the terms and conditions of the policy.

Medical and Non-Medical Policy – Both medical and non-medical types of policies are available under the Postal Life Insurance schemes. Non-medical policy attracts deduction of a sizeable percentage of death claims if the insured person dies within 3 years from the date of acceptance. But, it is always better to go for the medical policies as it comes with greater benefits and facilities.

Assignment of a Policy – An assignment of a policy can be made either by endorsement on the reverse of the policy itself or by a separate deed. The assignment must be signed and dated by the assignor in the presence of a witness.

Wider Connectivity – If you are changing your location of staying, your PLI or RPLI policy need not to be transferred from one circle to another circle. Now premium can be paid at any post office all over the country and policy payment can also be taken from any post office in India.

Smooth Claim Process – As the Postal Life Insurance schemes are centralized schemes and the availability is very much high, the claim process for these schemes is very easy and quick.

Conversion of Policy – Under PLI and RPLI, a policy can be converted from a Whole Life Assurance policy to an Endowment Assurance Policy, and also An Endowment Assurance Policy can be converted to another Endowment Assurance plan as per the regulations and guidelines laid down by the insurer.

Schemes Offered By Postal Life Insurance Scheme

Postal Life Insurance has come up with six different variants to cater to the varied needs of individuals. You can choose any of the schemes according to your convenience Here is a list containing all the variants of the policy including the eligibility criteria.

Name of the scheme	Entry age	Sum insured	Last declared bonus
Whole Life Assurance (SURAKSHA)	Minimum – 19 years Maximum – 55 years	Minimum – Rs. 20,000 Maximum – Rs. 50 lakhs	Rs. 76/- per Rs. 1000 sum assured per year
Convertible Whole Life Assurance (SUVIDHA)	Minimum – 19 years Maximum – 50 years	Minimum – Rs. 20,000 Maximum – Rs. 50 lakhs	Rs. 76/- per Rs. 1000 per year (for WLA policy if not converted to Endowment Assurance)
Endowment Assurance (SANTOSH)	Minimum – 19 years Maximum – 55 years	Minimum – Rs. 20,000 Maximum – Rs. 50 lakhs	Rs. 52/- per Rs. 1000 sum assured per year
Joint Life Assurance (YUGAL SURAKSHA)	Minimum – 21 years Maximum – 45 years	Minimum – Rs. 20,000 Maximum – Rs. 50 lakhs	Rs. 52/- per Rs. 1000 sum assured per year
Anticipated Endowment Assurance (SUMANGAL)	Minimum – 19 years Maximum – 40 years and 45 years	NA	Rs. 48/- per Rs. 1000 sum assured per year
Children Policy (Bal Jeevan Bima)	Adult – Not more than 45 years Children – 5 years to 20 years	Maximum – Rs. 3 lakhs or equal to the sum assured of the parent, whichever is less	Rs. 52/- per Rs. 1000 sum assured per year

Postal Life Insurance Schemes Detail

1. Whole Life Assurance (SURAKSHA)

This plan helps the life assured to get the assured amount along with accrued bonus once he/she attains the age of 80 years. In case of unfortunate demise of the life assured, his/her legal representatives will receive the same amount. However, to avail of this facility, the policy should be in force on the date of claim.

Key highlights of the scheme:

Under this policy, the loan facility is available after 4 years and one can surrender the policy after 3 years.
This scheme can be converted into Endowment Assurance Policy up to 59 years of age of the insurant. It has to be remembered, the date of conversion should not fall within one year of the last date of premium payment or date of maturity.
Premium paying age can be opted for as 55,58 or 60 years, and the proportionate bonus on the reduced sum assured is paid only if the policy is surrendered.

2. Convertible Whole Life Assurance (SUVIDHA)

It is a Whole Life Assurance Policy that has come up with the facility of an option to convert it to Endowment Assurance Policy at the end of five years of taking the policy, not later than 6 years of taking the policy. If not converted, the policy will be treated as Whole Life Assurance. The loan facility is available under this policy after the completion of 4 years and the policy can also be surrendered after 3 years.