Unlock The Benefits of Postal Life Insurance: A Smart Investment Choice

If you are planning to secure your family’s financial future investing your hard-earned money properly is necessary. In such a scenario life insurance can work well. Talking about life insurance Postal life insurance or in short PLI can be a good option for investment. As the name suggests this insurance plan has its base in the post offices and is also termed as post office life insurance. To understand the insurance plan in detail first let us know a few basics about Postal life insurance policy.

What is Postal life insurance?

The Postal Life Insurance (PLI) scheme, which was initiated with the intention to assist the employees of the Postal Service, was first sanctioned by the Queen Empress of India in February 1884. During the same year, the scheme was also made available for the staff of the Telegraph Department. It was easily accessible for the staff of the post offices at that time. By the year 1894, PLI had become the first life insurance scheme to cover women at work as well. This made the scheme a chapter to remember.

At the time of the initiation, the sum assured available under the policy was capped at Rs 4,000 only. Now, the limit is set to Rs 50 Lakh. This scheme in the contemporary scenario is available to employees of the central government and state governments, the defense forces along with other paramilitary services, different universities of the country, government-aided educational institutions, government banks, local bodies, public sector undertakings, cooperatives, joint stock companies with at least 10% government or PSU ownership, as well as professional doctors, engineers, lawyers, and chartered accountants. Now it also includes employees of the BSE and the NSE. Thus, its scope of including people has expanded gradually over time. There is also a group insurance scheme for the extra-departmental staff of the Post Office.

Much like PLI there is another scheme known as RPLI or Rural Postal Life Insurance introduced by the government for financial gains of the rural people.

Postal Life Insurance Plans: Postal Life Insurance is one of the earliest insurance schemes to have been launched in India. The most striking feature of a PLI scheme is that it fetches high returns (with bonus) for its policyholders at extremely low-priced premiums.

Brief history of PLI: On February 1, 1884, the Queen Empress of India, with the consent of the Secretary of State for India, approved the launch of Postal Life Insurance, marking it as the first ever insurace company in the nation.

It started off initially as a welfare scheme for the employees of the Postal Service, but that same year was expanded to include employees of the Telegraph Department as well. In the initial years insurance amount was capped at Rs. 4,000, but at present it stands at Rs. 50 Lakhs.

Currently, Postal Life Insurance is among the leading providers of PLI schemes in India, offering competitively priced investment schemes with low premiums that are strategically designed for enhanced financial security in the long run.

Eligibility criteria for Postal Life Insurance: This particular scheme offers coverage to the children of policyholders. It offers benefits to a maximum of two children of policy holders. Children who are aged between five to twenty years can become eligible to receive benefits or coverage of the insurance. The maximum sum assured under this policy is around ₹3 lakh or equal to the sum assured of the parent, whichever is lower.

Features of Postal Life Insurance Policy

A policyholder can avail the following benefits:

High Returns: Compared to any other insurance policy provider in India, Postal Life Insurance is best known for its high returns and premium insurance packages. The benefits of postal life insurance are high compared to any other insurance company in India.
Nomination facility:The policyholder can nominate his/her beneficiary, and can also make changes to the nomination.
Loan facility: A Loan facility is offered in accordance with this policy. When an Endowment Assurance policy reaches three years of maturity, or when a whole Life Insurance policy reaches four years of policy period, the policyholder can pledge the policy as collateral to the Heads of the Region or Circle on behalf of the President of India. Under this plan, assignment facilities are also offered.
Policy Revival: A policyholder can revive a lapsed policy. The policy can be revived when policy has lapsed under the following conditions –
Policy has lapsed after six successive non-payments of premium with the policy being in effect for less than three years.
Policy has lapsed after 12 successive non-payments of premium where policy has been in effect for more than three years.
Duplicate Policy Document: If the policyholder misplaces the original policy paper, a duplicate will be sent to them. This also holds true if the insured requests a duplicate policy document because the original has been destroyed by fire, destruction, or mutilation.
Conversion of Policy: It is possible to change this insurance from Whole Life Assurance to Endowment Assurance. In accordance with the rules and specifications provided by the insurer, an Endowment Assurance Policy may be converted to another Endowment Assurance plan.

Benefits of Investing in PLI

Some of the other benefits and discounts offered under the Postal Life Insurance scheme are as follows:

The insured can avail themselves of income tax exemption as provided under Sec. 88 of the Income Tax Act.
Additional facilities offered under this policy are Assignment, Loan, Conversion, Surrender and Paid-Up Value options.
The policy can be transferred to any Circle within India, at no additional charges.
Passbook facility is available to track the payment of premium and in case of loan transactions, etc.
Premium can be paid on an annual, half-yearly and monthly basis. When the payment is due, the policyholder can make a payment on any working day.
If you make an advance premium payment for a policy period of six months, you can avail yourself of a discount a discount on premium worth 1% of the value.
If you make an advance premium payment for a policy period of 12 months, you can avail a discount on premium worth 2% of the value.
Nomination facility is available.
Since this scheme has a centralized accounting facility, the claims process is quick and easy.

Types of Postal Life Insurance Schemes

There are seven different life insurance policies under PLI. What are they? Let’s take a look.

1. Whole Life Insurance (Suraksha):

This type of the insurance policy has the mentioned features-

Scheme: As the insurance policv expires the assured sum along with the bonus amount is paid to nominee or assigned heir.

Entry Age: 19 years till 55 years

Minimum Sum assured: Rs.20,000

Maximum Sum Assured: Up to Rs.50 lakh

Policy Conversion: After one year, a policy can be converted to an Endowment Assurance policy before the insured turns 57.

Loan Facility: After 4 years loan is available

Policy Surrender: After three years of completion one can surrender. However, if the policy is not five years old the policy will not be eligible for bonus.

Medical Examination: It is mandatory for this type of policy

Premiums Payable: The premium is calculated based on the age of maturity and age of entry.

2. Endowment Assurance (Santosh)

Scheme: This scheme provides assured amount along with accrued bonus to the investor when he or she attains the pre-decided age of maturity.

Entry Age: 19 years till 55 years

Minimum Sum assured: Rs.20,000

Maximum Sum Assured: Up to Rs.50 lakh

Policy Conversion: Policy can be seamlessly converted to any Endowment scheme following PLI rules.

Loan Facility: You can avail loans after four years of completion

Policy Surrender: The policy can be surrendered after three years of completion. However, it will not be eligible for a bonus if it is utilized as collateral for a loan within five years before completion.

Medical Examination: It is required

Premiums Payable: The premium is calculated based on the age of maturity and age of entry.

3. Convertible Whole Life Insurance (Suvidha)

Scheme: Under this scheme you get assured amount along with accrued bonus to the investor when he or she attains the pre-decided age of maturity. The sum amount along with bonus is payable to the nominee in case of sudden death of the policy holder.

Entry Age: 19 years till 55 years

Minimum Sum assured: Rs.20,000

Maximum Sum Assured: Up to Rs.50 lakh

Policy Conversion: Policy can be seamlessly converted to any Endowment scheme after five years of completion.

Loan Facility: You can avail loans after three years of completion

Medical Examination: It is required

Premiums Payable:The premium is calculated based on the age of maturity and age of entry.

4. Anticipated Endowment Assurance (Sumangal):

Scheme: This scheme is best for people who prefers periodical return. It offers money back policy.

Entry Age: 19 years till 55 years

Minimum Sum assured: 20% of benefits are paid post six years. After eight years 20% of the assured sum is what the scheme offers.

Maximum Sum Assured: Rs.50 lakh

Loan Facility: In case of unexpected death of the insured person, such payment would not be assessed, and the entire amount was secured, which would be paid to the assignment or legal heirs, with the earned bonus.

Medical Examination: It is essential

Premiums Payable: The premium is calculated based on the age of maturity and age of entry.

5. Joint Life Endowment Assurance (Yugal Suraksha):

Scheme: Both husband and wife are covered for a coordinated amount of bonus earned during the same prize.

Entry Age: 19 years till 55 years

Minimum Sum assured: Rs.20,000

Maximum Sum Assured: Rs.50 lakh

Policy Conversion: Policy can be seamlessly converted to any Endowment scheme after five years of completion.

Loan Facility: After three years of policy completion one can avail loan.

Policy Surrender: It can be surrendered after three years. The bonus will not be available if the policy is assigned or used as collateral within five years before completion.

Medical Examination: It is mandatory

Premiums Payable:The premium is calculated based on the age of maturity and age of entry.

6.Scheme for Physically Handicapped Person:

Physically disabled applicants can use all life insurance under this scheme. However, premium prices will depend on the nature and reach through a compulsory medical examination.

7. Children Policy (Bal Jeevan Bima):

Scheme: This policy is specially designed for the children of policyholders. It covers maximum two children in a family.

Entry Age: From 5 till 20 years

Maximum Sum Assured: The lower amount between Rs. 3 lakh and the sum assured of the main policyholder.

Loan Facility: It is not available

Medical Examination: Not required for this scheme

Premiums Payable: No premium is necessary in case of death. Together with the earned bonus, the amount given will be paid by policy crime.

Postal Life Insurance Customer Guidelines

If you are planning to buy this policy as a customer keep in mind the following guidelines:

The use of policy numbers: Always use the policy number mentioned in the policy document for future reference, including identification, premium payment and favorable services.
Update contact information: Provide exact contact information including address and phone number and update them immediately. This requirement is important for settlement, as the requirement control will be sent to the registered address.
Protection of policy: Protect the original policy document, as it is necessary for disposal of claims. If lost or damaged, a duplicate copy may be asked.
Regular Premium Payment: Provide timely payment to maintain uninterrupted coverage. Non-paying results in failure to policy, invalid claims. The prize must be paid for the first 1 of each month. Grace period payment late beyond insurance penalties to the last working day of the month.
Pay a deduction option: The prize can be cut directly from your salary with the consent of your employer, and the deduction will be reflected in your paycheck.
Methods of payment: The prize can be paid at the counter in cash, check, online, electronic clearance system (ECS) or post offices.

Postal Life Insurance forms

If you are reading this article and planning to opt for this policy, you can fill up from the following forms available online on the Postal Life Insurance website.

Child Proposal Form
Yugal Suraksha Form
WLA (Whole Life Assurance), CWLA (Convertible Whole Life Assurance), EA (Endowment Assurance) and AEA Form
RPLI (Rural Postal Life Insurance) Form
RPLI Medical Form
Loan Application Form
Claims Form
Maturity Claim Form
Survival Benefit Claim Form
Form for Revival of Lapsed Policy
Personal Bond of Indemnity

How to buy Postal Life Insurance Plans online?

In order to purchase Postal Life Insurance (PLI) plan online, go to the official India Post site or Postal Life Insurance Portal. Sign up or log in using credentials. Select the desired PLI scheme, fill in the electronic application form and state the necessary details as personal information, designated details and insurance provided yoga. Upload required documents such as identification certificate, address certificate and medical reports (if used) documents. Calculate the premium and proceed with online payment. After submission, your application will be reviewed, and after approval, policy documents will be published digitally. For help, contact the nearest post office.

Postal Life Insurance is specifically drafted and designed for the employees of the government sector. The policy ensures financial protection to the nominee after a policyholder’s death. This scheme has seven different types – Whole Life Insurance, Endowment Assurance, Convertible Whole Life Insurance, Anticipated Endowment Assurance, Joint Life Endowment Assurance, and Scheme for Physically Handicapped Persons and Children Policy. But before purchasing any policy properly assess your objective and calculate the coverage that suits the requirements of your family. Stay updated in your financial path and keep reading Minty Cents