Postal Life Insurance (PLI)

 

Postal life insurance offers 7 (Seven) types of plans:

  1. Whole Life Assurance  (SURAKSHA)
  2. Convertible Whole Life Assurance (SUVIDHA)
  3. Endowment Assurance  (SANTOSH)
  4. Anticipated Endowment Assurance  (SUMANGAL)
  5. Joint  Life Assurance  (YUGAL SURAKSHA)
  6. Scheme for Physically handicapped persons
  7. Children Policy

 

WHOLE LIFE ASSURANCE: 
This is a scheme where the assured amount with accrued bonus is payable to the assignee, nominee or the legal heir after death of the insurant. Minimum Age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. The policy can be converted into an Endowment Assurance Policy after completion of one year and before 57 years of age of the insurant. Loan facility is available after completion of four years and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

ENDOWMENT ASSURANCE
Under this scheme, the proponent is given an assurance to the extent of the Sum Assured and accrued bonus till he/she attains the pre-determined age of maturity. In case of unexpected death of the insurant, the assignee, nominee or the legal heir is paid the full Sum Assured together with the accrued bonus. The minimum age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. Loan facility is available and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered  or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

CONVERTIBLE WHOLE LIFE ASSURANCE
The features of this scheme are more or less same as Endowment assurance. Policy can be converted into Endowment Assurance after five years. Age on the date of conversion must not exceed 55 years. If option for conversion is not exercised within 6 years, the policy will be treated as Whole Life Assurance. Loan facility is available. The policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered  or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

ANTICIPATED ENDOWMENT ASSURANCE:
It is a Money Back Policy with maximum Sum Assured of Rs 5 lacs.  Best suited to those who need periodical returns. Survival benefit is paid to the insurant periodically. Two types of policies  are available – 15 years term and 20 years term. For the 15 years term policy, the benefits are paid after 6 years (20%), 9 years (20%), 12 years (20%) and 15 years (40% and the accrued bonus). For the 20 years term policy, the benefits are paid after 8 years (20%), 12 years (20%), 16 years (20%) and 20 years (40% and the accrued bonus).Such payments will not be taken into consideration in the event of unexpected death of the insurant and the full sum assured with accrued bonus is payable to the assignee or legal heir.

JOINT LIFE ASSURRANCE: 
 It is a joint-life Endowment Assurance in which one of the spouse should be eligible for PLI policies. Life insurance coverage is provided to both the spouses to the extent of sum assured with accrued bonus with only one premium. All other features are same as an Endowment policy. 
            All the above schemes have compulsory medical examination. For the non-medical policy of any category (except AEA and Joint Life Assurance for which Medical Examination is compulsory), the maximum Sum Assured is Rs 1 lac.

LIMITS OF SUM ASSURED IN POSTAL LIFE INSURANCE: 
Any person who is eligible to the benefit of Post Office Life Insurance Fund under Rule 6, may effect an insurance-Whole Life Assurance, Endowment Assurance, Convertible Whole Assurance, Anticipated Endowment Assurance and Yugal Suraksha Policy or all of them on his life for a sum not less than Rs. 20,000 in each class but not more than an aggregate of Rs. Twenty Lac  (Rs. 20,00,000/-) in respect of one class/all classes of insurance policy (s) taken together. The value of policy shall be taken in multiples of Rs. 10,000/- after minimum limit of Rs.20,000/- i.e. Rs. 20,000/-, Rs.30,000/-,Rs. 50,000/- and so on.

SCHEME FOR PHYSICALLY HANDICAPPED PERSONS 
The maximum limit of Insurance for Physically Handicapped persons in PLI is the same as others and he/she  can take any one of the plans.  Medical examination is compulsory under this scheme in order to determine the exact nature and extent of their handicap and its bearing  on the life being insured. Depending upon the nature and extent of handicap, normal or a slightly higher premium is charged.

CHILDREN POLICY
The Department has introduced Children Policy under PLI/RPLI, with effect form 20th Jan 2006. The salient features of this scheme are as under:-

  • The Scheme is envisaged to provide Insurance cover to the children of PLI/RPLI policy holders.
  • Maximum two children in family will be eligible to take children policy.
  • Children between the age of 5 and 20 years are eligible and maximum sum assured is Rs 1 lakh or equivalent to the sum assured of the main policy holder which ever is less.
  • The main policy holder should not have attained the age of 45 years.
  • No premium is required to be paid on the children policy on the death of the main policy holder and full sum assured with the accrued bonus shall be paid to the child after the completion of the term of the children policy. On the death of the child/children, full sum assured with the accrued bonus shall be payable to the main policy holder.
  • Main policy holder shall be responsible for payments for the Children Policy. No loan shall be admissible on Children Policy. However, the policy shall have facility for making it paid up provided the premia are paid continuously for 5 years.
  • No Medical examination of the Child is necessary. However, the child should be healthy on the day of proposal and the risk shall start from the date of acceptance of proposal.
  • The policy shall attract bonus at the rate applicable to Endowment Policy. The POIF Rules amended from time to time shall be applicable to Children Policy.

Who are eligible for obtaining a PLI policy?
Employees  of the following Organizations are eligible.

  • Central Government
  • Defence Services
  • Para Military forces
  • State Government
  • Local Bodies
  • Government-aided Educational Institutions
  • Reserve Bank of India
  • Public Sector Undertakings
  • Financial Institutions
  • Nationalized Banks
  • Autonomous Bodies
  • Extra Departmental Agents in Department of Posts

Whether salaried professionals in Private Sector can join PLI?

Such categories are not eligible. They can opt for RPLI policies.

If one spouse is working in a Government organization  but the other is not, is there any scheme in PLI for both?

We have ‘Yugal Suraksha’ scheme under which both can jointly get a policy, after paying a little more premium. Both can be covered under this assurance scheme.

Can one continue the policy if one quits the Government Service?

Yes. One can continue by making payment of premium at any one of the 1,55,000 post offices throughout the country, even after quitting service.

For Rural Postal Life Insurance any Indian  residing in Rural India can take RPLI.  Rural area is defined as one being outside the limits of a municipality.

Age Limit: In all policies the age limit is (age as on next birthday):19-55 years. Only in AEA and GRAM Priya in RPLI the maximum age limit is 40 years.

 

Q. What is PLI?
A. A contract entered into by the Government to pay a given sum of money on the death of an individual to his nominee or himself, if he survives that period.

Q. When did PLI start?
A. PLI as a scheme is available since 01.02.1884.

Q. What is the difference between PLI and other Insurance?
A. PLI is only for Government and Semi-Government employees. Moreover PLI is the only Insurer that offers
low premium and high bonus.

Q. Is PLI guaranteed? If so, by whom?
A. PLI is guaranteed by Government of India.

Q. Is there any limit to the number of policies one can take for children?
A. One can take policies for two children.

Q. What is the necessity of sending the PLI Policy Bond to office address of the Insurant? Why can this not be sent to the residence of Policy holder?
A. PLI policy is issued to people who are employed under Government/Semi-Government sector etc. That
is why the policy bond is sent to the Office address of the Insurant.

Q. How can a policy be transferred from one PO to other?
A. The system of transfer of PLI policy is very simple. The policy holder can apply to the Chief Post Master General through the Post Office where the policy stands or the PO in which he desires to pay the premium. The PO will accept the application and send to the CPMG (PLI).

Q. Which type of PLI policy among your scheme is more beneficial to opt for without hesitation?
A. All policies in PLI are beneficial. Every scheme has some unique features. In EA policy, you will get your savings along with bonus after the prescribed number of years.


Eligibility
Q. Who are eligible for obtaining a PLI Policy?
The employees of following are eligible for PLI policy:

  •   Central Government
  •   Defense Services
  •   Para Military Forces
  •   State Government
  •   Local Bodies
  •   Educational Institutions/ Government-aided
  •   Reserve Bank of India
  •   Public Sector Undertakings
  •   Financial Institutions
  •   Nationalized Banks
  •   Autonomous Bodies
  •   Extra Departmental Agents in Department of Posts

Q. Whether salaried professionals in Private Sector can join PLI?
A. Such categories are not eligible but they can have RPLI policies subject to fulfilling other conditions.

Q. If one spouse is working in a Government Organization but the other is not, is there any scheme in PLI for both?
A. We have 'Yugal Suraksha' scheme under which both can jointly get a policy. After paying a little more premium, both can be covered under this assurance scheme.

Q. Can one continue the policy if one quits the Government service?
A. One can continue by making payment at any one of the 1, 55,000 post offices throughout the country, even after quitting service..

PREMIA PAYMENT
Q. What is the mode of premium deposit?
A.  The Premium Receipt Book is issued to the Insurants for the deposit of Premium in any departmental PO, and there is a facility of recovery from pay for all employees belonging to the Central Government.

Q. Is there any other mode of payment?
A. The premium can be paid through Cheque.

Q. Is premium recovered through salary?
A. Yes, recovery of the premia through salary is possible, in offices where it is remitted directly to PLI. In case where it is not, it is possible by appointing a Group Leader, who collects the premia from the insurants and deposits in a post office along with PR book. However, premia are to be deposited in any post office as per convenience i.e. monthly/half yearly/ yearly where there is no recovery through salary.

Q. Why is the premia for children’s policy higher?
A. As both children’s and parent’s risk is covered.

Q. Can one revive a lapsed policy?
A. If the premia are not paid for 6 months in case policy is in currency for 3 years (or) 12 months in case policy is more than 3 years old, then the policy becomes void. This needs revival to make it active. Revival shall not be allowed on more than two occasions during the entire term of the policy. Policy can be revived any time one year before maturity.

Q. What happens if one forgets to pay one’s premium in a month?
A. One can pay the premium in the subsequent month, by paying a minimum fine of Re. 1/- per hundred of sum assured.
LOAN

Q. Is loan facility available in PLI?
A. Loan can be taken from EA policy after completion of 3 years and in respect of Whole Life after completion of 4 years. Loan facility is available in AEA policies.

Q. Is Home loan available?
A. No

Q. What are the terms on which loan can be availed?

  • EA policies after 3 years from date of issue of policy.
  • WLA policies after 4 years.
  • Interest 10% p.a. Calculated on six monthly basis
  • Loan entitlement is calculated on a prefixed proportion of these surrender value
  • Interest should be paid on(or) before 21st of due month (i.e. 6 monthly once)

SURRENDER

Q. What is surrender value of a policy?
A.” Surrender value” of a policy, means the amount that is payable to an assured, when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment.

Q. What will be the surrender value of the policy?
A. Surrender value depends on the surrender factor and type and term of policy.

Q. Can one get the full amount paid with accrued bonus, if policy is surrendered prematurely?

Endowment Assurance policy can be surrendered after 36 months.

WLA policy can be surrendered after 48 months.

Children policy can be surrendered after 60 months.

No surrender for AEA policy.

Bonus will be taken into account after 5 years for surrender value calculation on the paid up value. But surrendering any policy prematurely is always a loss to the insurant. Hence, it is suggested not to go for surrender.
It is not a simple saving scheme but it aims to give risk coverage also.
It provides immediate Insurance coverage from the date of acceptance. Full policy amount with accrued bonus will be given even if death occurs on the very next day of acceptance of the proposals for all bonafide cases.

 

Note:  Provisions to join Post Life Insurane is subect to change, please contact the nearest Post Office for more details and uptdo date inforamtion (12-Sept-2013)

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Comments
 
M.V.Rama charyulu
Posted On : 18-03-2014
Sir, My whole life policy No.AP-1823-S matured in 2010. I want to surrender the policy how much amount I will get after surrendering.
Site Admin
Posted On : 28-03-2014
Information provided is insufficient, so please contact the insurance company for the required details
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