Postal Life Insurance: 6 Postal Life Insurance policies

Postal Life Insurance

Postal Life Insurance

Introduction To Postal Life Insurance

Postal life insurance initially started to provide insurance services for employees of postal department.

It later extended to telegraph employees and then to other areas. This is covered more in below blog

About

Postal life insurance is the oldest insurance provider in India. Postal life insurance is established in 1884, as stated above PLI started for postal department employees but now PLI covers different central and state government employees. Also, the employees of banks and educational institutions.

Postal Life insurance growth is very remarkable, is has started with a few hundred policies and grown to 46 lacks policies as per 2017 books.

PLI has 1,50,000 plus branches across India.

Tax Exemption

Another important thing to notice is Postal Life Insurance is an exempted insurer. That is if you receive any amount from PLI after the maturity of your policy that money is exempted from TAX. Whereas other insurers are not exempted, and you must pay TAX for the maturity amount you receive.

As per Section 118 (c) of the Insurance Act of 1938. It is also exempted under Section 44 (d) of LIC Act, 1956.

Products

Postal Life insurance has 2 products

  • Postal Life Insurance
  • Rural Postal Life Insurance
Different policies of Postal Life Insurance
Different policies of Postal Life Insurance

Postal Life Insurance

This product is only for government employees in different departments. Such as Central and state Public sector undertakings, Universities, Government aided institutions, Nationalized banks, Local bodies etc.

This product also covers the insurance to the defence services and paramilitary officers and staff.

Insurance Plans in PLI

Postal Life Insurance offers the below 6 types of policies:

Name
Type Assured Amount Age Limit Loan Available Medical Test
Suraksha Policy

Whole Life Insurance"Min-20,000
Max-50 L"
19 to 55
Yes
Required
Santosh Policy
Endowment Policy
"Min-20,000
Max-50 L"
20 to 55
Yes
Required
Suvidha Policy
Convertible Whole Life
"Min-20,000
Max-50 L"
21 to 55
Yes
Required
Sumangal Policy
Anticipated Endowment
Max 50 L
"19 – 40 for 20yr policy
19-45 for 15 yr policy"
Yes on Gram sumangal
Required
Yugal Suraksha Policy
Joint Life Endowment
"Min-20,000
Max-1 Lakh"

21 to 45

Yes
Required
Bal Jeevan Bhima PolicyChildren policy
Maximum - 3 L5 to 20 yrsNo
Not Required

Whole Life Assurance (Suraksha policy)

Under this scheme the insured amount and the bonus will be paid after the insured turns 80 years OR the amount and the bonus is paid to nominees when the death occurs, whichever is earlier.

  • Age limit 19 to 55 years
  • Sum assured from 20,000 to 50 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 85 Rs per every 1000 Rs Assured per year

Endowment Assurance (Santosh policy)

This scheme allows the insured to select the pre-determined age of maturity i.e. 35,40,45,50,55,58 & 60 years of age.

That means the insurance takers can choose at what age he/she wants to get the maturity amount and bonus.

The nominee gets the sum assured and bonus in case the insured death happens within the selected pre-determined age

  • Age limit 19 to 55 years
  • Sum assured from 20,000 to 50 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 58 Rs per every 1000 Rs Assured per year

Convertible Whole Life Assurance (Suvidha policy)

This is like whole life insurance policy with an option to change to Endowment Assurance Policy after the completion of five years.

The benefits are same as Whole life insurance and benefits of Endowment policy apply if changed to endowment.

  • Age limit 19 to 50 years
  • Sum assured from 20,000 to 50 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 85 Rs per every 1000 Rs Assured per year

Anticipated Endowment Assurance (Sumangal policy)

This scheme or policy is for you if you want a periodic return of amount. For example if you take a 15 year policy for 10 lack rupees on completion of 6th 9th and 12th years you get 20% of 10 lack i.e. 2 lacks on 6th 9th and 12th years and the remaining 40% i.e. 4 lacks you will get on maturity year (15th year) .

In case of death the assured amount will be paid to nominee with bonus.Age limit 19 – 40 for 20 years term policy

  • Age limit 9 – 45 for 15 years term policy
  • The bonus that was paid – 53 Rs per every 1000 Rs Assured per year

Joint Life Assurance (Yugal Suraksha policy)

As the name indicates this scheme is for married people. It gives life cover to both spouses.

One of the spouses should be eligible for PLI policies. That means they should be an employee of the organisations/ Institutes that PLI provides the insurance service to.

So, in case of one of spouse’s dismissal other will get the insured amount.

Other benefits are like whole life insurance.

  • Age limit 21 – 45
  • Sum assured from 20,000 to 50 Lacks
  • Loan is available after 4 years
  • The bonus that was paid – 58 Rs per every 1000 Rs Assured per year

Children Policy (Bal Jeevan Bima policy)

This policy gives life insurance cover to children of policy holders

  • Two children are eligible for one policy holder
  • Children aged between 5 and 20 years are eligible
  • Maximum sum assured is 3 lacks
  • The bonus that was paid – 58 Rs per every 1000 Rs Assured per year

 Rural Postal Life Insurance

In 1993 Mr Malhotra (Former governor of RBI) committee noticed that only 22% of the insurable population in India are insured and life insurance funds were only 10% of the household savings.

So, the committee came up with below recommendations

  • Allowing private sector companies into insurance industry
  • Allowing foreign promoters into insurance industry
  • Setting up IRDA
  • Extending Postal life insurance services to the Rural population

Based on the recommendation government accepted to extend the postal life insurance services to rural areas.

In rural areas the people consider postmasters trustworthy and they respect them, so the government allowed postmasters to sell/promote postal life insurance policies in rural areas.

Rural Postal Life Insurance
 Rural Postal Life Insurance

Rural Postal Life Insurance offers six types of policies

  • Whole Life Assurance (Gram Suraksha)
  • Endowment Assurance (Gram Santosh)
  • Convertible Whole Life Assurance (Gram Suvidha)
  • Anticipated Endowment Assurance (Gram Sumangal)
  • 10 Year RPLI (Gram Priya)
  • Children Policy (Bal Jeevan Bima)

Whole Life Assurance (Gram Suraksha)

Gram Suraksha scheme gives the insured amount and the bonus after the insured turns 80 years OR the amount and the bonus is paid to nominees when the death occurs, whichever is earlier.

  • Age limit 19 to 55 years
  • Sum assured from 10,000 to 10 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 65 Rs per every 1000 Rs Assured per year

Endowment Assurance (Gram Santosh)

The Gram Santosh scheme allows the insured to select the pre-determined age of maturity i.e. 35,40,45,50,55,58 & 60 years of age.

That means the insurance takers can choose at what age he/she wants to get the maturity amount and bonus.

The nominee gets the sum assured and bonus in case the insured death happens within the selected pre-determined age

  • Age limit 19 to 55 years
  • Sum assured from 10,000 to 10 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 50 Rs per every 1000 Rs Assured per year

Convertible Whole Life Assurance (Gram Suvidha)

The Gram Suvidha is like whole life insurance policy- Gram Suraksha with an option to change to Endowment Assurance Policy-Gram Santosh after the completion of five years.

The benefits are same as Whole life insurance and benefits of Endowment policy apply if changed to endowment.

  • Age limit 19 to 45 years
  • Sum assured from 10,000 to 10 Lacks
  • Loan is available after 4 years
  • Insurance surrender is allowed after 3 years
  • The bonus that was paid – 65 Rs per every 1000 Rs Assured per year

Anticipated Endowment Assurance (Gram Sumangal)

The Gram Sumangal scheme or policy is a money back policy. It offers a periodic return of amount. For example if you take a 15 year policy for 10 lack rupees on completion of 6th 9th and 12th years you get 20% of 10 lack i.e. 2 lacks on 6th 9th and 12th years and the remaining 40% i.e. 4 lacks you will get on maturity year (15th year) .

In case of death the assured amount will be paid to nominee with bonus.

  • Age limit 19 – 40 for 20 years term policy
  • Age limit 9 – 45 for 15 years term policy
  • The bonus that was paid – 47 Rs per every 1000 Rs Assured per year
  • Maximum sum assured is 10 lacks only

10 Year RPLI (Gram Priya)

Gram Priya is a short-term money back policy.

  • The insurant is covered for 10 years
  • Survival benefits are paid for 4yrs-20%; 7yrs-20%; 10yrs – 60% with bonus
  • Age limit 20-45 yrs
  • Sum assured from 10,000 to 10 Lacks
  • The bonus that was paid – 47 Rs per every 1000 Rs Assured per year

Children Policy (Bal Jeevan Bima)

The Bal Jeevan Bima policy gives life insurance cover to children of policy holders

  • Two children are eligible for one policy holder
    • Children aged between 5 and 20 years are eligible
    • Maximum sum assured is 1 lack
    • No medical examination is required for the child
    • The bonus that was paid – 50 Rs per every 1000 Rs Assured per year

Schemes

Postal life insurance also provides group schemes. There are two major schemes that PLI offers

  • GDSGIS – Gramin Dak Sevaks’ Group Insurance scheme
  • EDAGIS – Extra Department Agents Group Insurance scheme

Both schemes are group schemes and only for postal department employees and the ED agents of the postal department

Postal Life insurance for Professionals

Postal Life Insurance also offers insurance plans for Professionals.

So, if you are a doctor, Engineer, CA, Architect, or Management consultant then you are eligible for taking postal life insurance.

Postal Life #insurance for Professionals
Postal Life insurance for Professionals

FAQ – Postal Life Insurance

I see people who are looking for PLI information are also searching for answers for below questions, so I am trying to answer them here.

What is the Postal Life Insurance?

Like any other insurance company PLI also one life insurance company but its major focus is on Government employees and Rural population

Who is Eligible to buy Postal Life Insurance?

Employees of most of the Government employees.

And people from rural areas.

Is Postal Life Insurance Maturity amount tax free

Yes, PLI Maturity amount is Tax free

Is PIL better than LIC? / PLI vs LIC.

As mentioned above PLI’s focus is limited, whereas LIC services are broad.

Since PLI is focused on Rural areas it can reach very remote areas in India.

In terms of policies they both have very good insurance policies of their own.

PLI has some limitation in terms of insured amount, and LIC schemes provide more insurance.

Which is the best PLI scheme/ policy?

Depends on the insured person requirements Please read through the above descriptions on each policy so that you get an idea based on your requirement.

For other Insurance related FAQs please check here https://ainsuranceplace.com/frequently-asked-questions-insurance/

How to check PLI status

If you want to know your Postal Life Insurance Policy status you can check it online. You need to simply login to india post website www.indiapost.gov.in

Then you need to click on customer care. Once you click on it you will find dropdown list , select complaint registration from the list.

Select postal Insurance from the complaint category , then enter all the details into the form.

Does Postal Life Insurance offer Loan

Yes, PLI offers loans after completing 3 or 4 years of premium payments on a policy.

What is the minimum and maximum limits under PLI?

Minimum ₹ 10,000 and maximum ₹ 10 lakhs for all the plans. For Children Policy maximum sum assured limit is ₹. 1 lakh.

Postal life Insurance Login

If you are an existing customer of PLI then you can login using this link https://pli.indiapost.gov.in/CustomerPortal/PSLogin.action

Postal Life Insurance Customer Services

Chief  General Manager
Directorate of Postal Life Insurance
Chanakyapuri Post Office Complex, Ist Floor
New Delhi – 110021
e-mail id: pli.dte@gmail.com
Toll free no. – 1800 180 5232, 155232
Land Line no.- 011 24673177

Note: The above email ID I got from the http://www.postallifeinsurance.gov.in But please confirm if you want to send an email as it looks incorrect to me.

New Claim guidelines

The directorate of PLI has released new guidelines on sanctioning the claim amount. So far it is mandatory to get witness address on sanction memo, but now it is not required.

New Claim guidelines

I am a certified insurance broker. I am a passionate blogger mainly focusing on insurance. I intend to create or increase the awareness of importance of insurance in India by writing useful blog posts. Also i write my blog posts in a simple language so that the readers do not overwhelmed by the terminology that is being used in insurance sector.

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