Postal Life Convertible Whole Life Assurance (Suvidha) Plan
The CWLA, or Convertible Whole Life Assurance policy, also known as Suvidha, is a unique investment-cum-life insurance policy that combines the features of both “Whole Life Assurance (Suraksha)” and “Endowment Assurance (Santosh)” policies. This policy is designed for individuals who find it challenging to choose between the two aforementioned types of insurance.
The scheme begins with the characteristics of a “Whole Life Assurance (Suraksha)” policy, offering long-term life insurance coverage. However, what sets it apart is the flexibility it provides after 5 years. Policyholders have the option to convert it into an “Endowment Assurance (Santosh)” policy during a specified window of 6 years from the policy’s initiation.
If a policyholder opts not to convert within this 6-year timeframe, the policy continues as a “Whole Life Assurance (Suraksha).” This flexibility allows individuals to tailor their insurance coverage based on their evolving financial needs and preferences, providing a comprehensive and adaptable solution for both protection and savings.
Key Highlights of Convertible Whole Life Assurance (Suvidha)
Here are the key highlights of the Convertible Whole Life Assurance (Suvidha) plan.
|Minimum Age at Entry
|Maximum Age at Entry
|Minimum sum assured
|Maximum sum assured
|Rs. 50 lacs
|Last declared Bonus
|Rs. 76/- per Rs. 1000 per year (for WLA policy if not converted to Endowment Assurance)
Key Features & Benefits of Convertible Whole Life Assurance
Here are the salient features and benefits of the Convertible Whole Life Assurance policy.
Two Sum Insured Options:
- Minimum Sum Assured: Rs. 20,000
This is the minimum amount that the insurance policy will pay out in the event of the policyholder’s death. The sum assured is the guaranteed amount that the beneficiaries will receive.
- Maximum Sum Assured: Rs. 50 lakhs
This is the maximum amount that the insurance policy will pay out in the event of the policyholder’s death. It represents the highest level of coverage that can be obtained under the Convertible Whole Life Assurance policy.
if the policyholder passes away during the policy term, the beneficiaries (nominees or legal heirs) are entitled to receive the death benefit. The death benefit typically consists of the sum assured amount along with any bonuses that may have accumulated up to the date of the insured’s death.
The policy allows the option to convert into an Endowment Assurance after a specified period. In this case, the conversion is permitted after 5 years but not later than 6 years from the policy’s inception. If the policyholder chooses not to convert the policy within the specified time frame, the policy will continue as a Whole Life Assurance. This means that it will remain in force for the entire lifetime of the insured, with a death benefit payable to the beneficiaries upon the death of the policyholder.
The Convertible Whole Life Assurance policy offers a loan facility after 4 years, which means that policyholders have the option to take a loan against the cash value of their policy after the policy has been in force for a specified period, which in this case is four years. This waiting period is a common feature to ensure that there is sufficient time for the policy to accumulate a cash value.
If a Convertible Whole Life Assurance policy allows surrender after 3 years, it means that the policyholder has the option to terminate the policy and receive a surrender value after the policy has been in force for at least three years. If the policyholder decides to surrender the policy, there will no longer be a death benefit payable to beneficiaries.
The last declared bonus for the Convertible Whole Life Assurance (WLA) policy, if not converted to Endowment Assurance, is ₹76 per ₹1000 of the sum assured per year. This bonus is a share of the profits earned by the insurance company and is typically declared annually. Policyholders need to note that the bonus applies to the WLA policy and may have an impact on the overall policy value, especially if the policy is held for an extended period without conversion.
How To Purchase Convertible Whole Life Assurance (Suvidha)?
If you are looking to buy a Convertible Whole Life Assurance policy, there are two methods available, i.e., online and offline method. Let’s discuss the online method first.
- Customers can now obtain Postal Life Insurance online by visiting the URL https://pli.indiapost.gov.in/CustomerPortal/Home.action.
- Simply select the Quote option from the Purchase a Policy dropdown menu.
- After that, you will need to enter a valid phone number, email ID, and correct PIN code. Under “Start a New Quote Here”, you will need to enter your date of birth, product type, sum assured, occupation, state, gender, and product name.
- Once you are done entering all the details, you will need to enter the letters as shown in the white box below on the same page. Then, you need to click on “Get Quote”.
- The system will automatically display the name of the nearest Head Post Office based on the provided PIN code. Following this, you are required to complete the Proposal Form.
- Customers have the option to make the initial premium payment through the link provided in the email or by accessing the ‘initial payment menu’ in the Purchase a Policy dropdown.
- Subsequently, customers can upload the necessary documents through the Document Upload menu in the Purchase a Policy Customer Portal.
- The selected Head Post Office will download the submitted documents and proceed with the necessary processing steps.
- The finalized Policy Bond will then be issued to the customer via Registered Post for their records.
If you prefer an offline purchasing process, you have multiple options to obtain a Convertible Whole Life Assurance policy with Postal Life Insurance:
- Visit the Nearest Post Office
Head to the nearest post office where you can directly engage with post office staff, including inspectors, clerical staff, and postmen. They can assist you in acquiring the policy.
- Consult Field Officers
Field officers from Postal Life Insurance are available to guide you through the entire purchasing process. They can provide personalized assistance and address any queries you may have.
- Direct Agents of India Post
Another avenue for purchasing a policy is through registered and licensed direct agents affiliated with India Post. These agents are authorized to facilitate the policy acquisition process.
These offline channels offer in-person assistance, ensuring that you receive comprehensive guidance in choosing the right policy and completing the necessary documentation. Whether you opt for support from post office staff, field officers, or licensed agents, the offline buying process provides a hands-on approach for those who prefer face-to-face interactions.
Frequently Asked Questions
Listed below are the frequently asked questions related to the Convertible Whole Life Assurance policy
In the event of the policyholder’s death, the full amount of the sum assured along with any accrued bonus will be paid to the assignee, nominee, or legal heir. The sum assured is the guaranteed amount specified in the insurance policy, and the accrued bonus represents the additional amount earned from the insurer’s profits and declared periodically.
The bonus is a share of profits declared by the insurance company, and to promote policy persistence and long-term commitment, eligibility criteria are often set. If you surrender your policy before completing 5 years, you may not meet the minimum holding period required for bonus entitlement.
You can apply for a loan from your Convertible Whole Life Assurance policy after the completion of four years from the policy’s inception. This waiting period is designed to allow the policy to accumulate a sufficient cash value.
No, the policy sets Rs. 20,000 as the minimum sum assured. You cannot select an amount lower than this.
Generally, the premium amount is influenced by the sum assured. Higher coverage often results in higher premiums. It’s important to balance coverage needs with affordability.