Best Postal Life Insurance Plans (PLI)
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Life insurance is regarded as one of the most important and essential tools that one must have in their financial kitty. The life insurance policies play a pivotal role as it protects your loved ones in case something unfortunate happens to you. In this article, we are going to discuss the postal office insurance schemes, which are known for being the most convenient and low-premium investment instrument in India.
Here’s a guide on postal life insurance plans which talks in detail about these schemes separately, their key features, benefits, and the eligibility to apply for the PLI scheme.
- What Are Postal Life Insurance Plans?
- Types of Postal Life Insurance Plans
- Whole Life Assurance (Suraksha)
- Convertible Whole Life Assurance (Suvidha)
- Endowment Assurance (Santosh)
- Joint Life Assurance (Yugal Suraksha)
- Anticipated Endowment Assurance (Sumangal)
- Children Policy (Bal Jeevan Bima)
- Postal Life Insurance Guide For Policyholder
- Benefits of Postal Life Insurance Plans
- Eligibility Criteria for Postal Life Insurance Plans
- How To Buy Postal Life Insurance Plans Online?
What Are Postal Life Insurance Plans?
The postal life insurance policies (PLI) are one of the oldest and most reliable life insurance plans which are available at very economical rates. These PLI plans are provided by India Post which offers a wide range of insurance policies such as whole life plans, convertible policies, endowment plans, money-back policy, insurance with joint-life cover and also a child policy. The PLI plans were launched on February 1, 1884, with an aim to provide welfare benefits to the postal employees which was now extended up to government and semi-government employees.
The PLI policies are designed to provide financial help to your family in case of the demise of the policyholder. One can purchase these policies at a very affordable premium rate which also allow them to cover their spouse and child. The policyholder can buy a postal life insurance policy via online or by visiting the post office. The policyholder also has the option to surrender the postal insurance policy after three years. Let’s dive into the details of each of the postal life insurance offerings and their salient features.
Types of Postal Life Insurance Plans
Whole Life Assurance (Suraksha)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
In this plan, the policyholder not only receives the sum assured amount but also is entitled to receive a bonus as a final payout. This entire amount is payable either to the nominee, if the policyholder dies, or is given to the policyholder once they attain the age of 80 years.
Key Features:
- Age Criteria: Entry age: 19 years to 55 years.
- Sum Assured Amount: Sum assured ranges from INR 20,000 to INR 50 lakh.
- Payout of Scheme: Sum Assured + Bonus.
- Loan Facility: Avail loan facility after four years.
- Surrender: Policy can be surrendered after three years.
- Eligibility to Receive Bonus: Policyholders will not be eligible for the bonus if they surrender before five years. Bonus on the reduced sum assured has to be paid if the policy is surrendered.
- Premiums Payable: The premium paying age can opt from 55,58 or 60 years
- Bonus: The declared bonus is INR 76 per INR 1000 sum assured per year. Terminal bonus payable would be INR 20 per sum assured of INR 10,000 for policy term of 20 years or more.
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Convertible Whole Life Assurance (Suvidha)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
This policy is also referred to as “suvidha”, which is a whole life insurance plan. There is an option given to the policyholder to convert the existing policy into an endowment assurance plan. The conversion can only happen by the end of five years of the existing policy.
Key Features:
- Age Criteria: Entry age: 19 years to 55 years.
- Sum Assured Amount: Sum assured ranges from INR 20,000 to INR 50 lakh.
- Payout of Scheme: Sum Assured + Bonus (on attaining the maturity age)
- Policy Conversion: The bonus of an endowment assurance policy is payable during conversion.
- Loan Facility: Avail loan facility after four years.
- Surrender: Policy can be surrendered after three years.
- Eligibility to Receive Bonus: Policyholders will not be eligible for the bonus if they surrender their existing policy before five years.
- Bonus: The declared bonus is INR 76 per INR 1000 sum assured per year.
- Terminal bonus: INR 20 per sum assured of INR 10,000 subject to maximum of INR 1,000 with policy term of 20 years or more
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Endowment Assurance (Santosh)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
In this policy, the policyholder is given a guarantee by the insurer to receive the payout to the extent of the sum assured amount and bonus until the pre-decided maturity age of 35, 40, 45, 50, 55, 58, and 60 years.
Key Features:
- Age Criteria: Entry age: 19 years to 55 years.
- Sum Assured Amount: Sum assured ranges from INR 20,000 to INR 50 lakh.
- Payout of Scheme: Sum Assured + Bonus
- Loan Facility: Avail loan facility after three years.
- Surrender: Policy can be surrendered after three years.
- Eligibility to Receive Bonus: Policyholders will not be eligible for the bonus if they surrender before five years. Bonus on the reduced sum assured has to be paid if the policy is surrendered.
- Bonus: The declared bonus is INR 52 per INR 1000 sum assured per year.
- Terminal bonus: INR 20 per sum assured of INR 10,000 subject to maximum of INR 1,000 with policy term of 20 years or more.
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Joint Life Assurance (Yugal Suraksha)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
In this kind of policy, the main policyholder has the option to include their spouse in the main policy and under the same coverage.
Key Features:
- Age Criteria: Entry age: 21 years to 45 years. The insured couple should age between 21 years to 45 years.
- Sum Assured Amount: Sum assured ranges from INR 20,000 to INR 50 lakh.
- Payout of Scheme: Ensures life coverage to both the spouses to the extent of sum assured amount of bonus with a single premium. Benefits are paid to either of the survivors whether in case of death of the spouse or the main policyholder.
- Loan Facility: Avail loan facility after four years.
- Surrender: Policy can be surrendered after three years.
- Eligibility to Receive Bonus: Policyholders will not be eligible for the bonus if they surrender before five years. Bonus on the reduced sum assured has to be paid if the policy is surrendered
- Bonus: The declared bonus is INR 52 per INR 1000 sum assured per year.
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Anticipated Endowment Assurance (Sumangal)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
This scheme is also known as “sumangal”, which is a money-back insurance plan. This plan has a maximum sum assured of INR 50 lakh. The policy is best suited for those who wish to have regular returns during the tenure of the policy.
It is to be noted that these periodic payments are not considered at the time of an unfortunate demise of the policyholder. In such a case, the nominee would receive the remaining sum assured amount along with the bonus.
Key Features:
- Age Criteria: Entry age: 19 years to 40 years (for 20-year policy term) and 45 years (for 15-year policy term).
- Policy Term: 15 years and 20 years.
- Sum Assured Amount: Sum assured ranges from INR 20,000 to INR 50 lakh.
- Survival Benefits: These benefits are paid periodically along with bonus on maturity.
- Bonus: The declared bonus is INR 48 per INR 1000 sum assured per year.
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Children Policy (Bal Jeevan Bima)
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
Scheme type
Pure Life Insurance Schemes
Entry Age
19 years to 55 years.
Payout
Sum Assured + Bonus
This policy is designed to provide insurance coverage to the children of the key policyholder. However, a maximum of two children of the policyholder can be covered under this policy.
Key Features:
- Child Age Criteria: 5 years to 20 years.
- Main Policyholder Age Criteria: Maximum: 45 years
- Sum Assured: Up to INR 3 lakh or which is equivalent to the sum assured by the parent, whichever is less.
- Payout of Scheme: Sum Assured + Bonus.
- Policy Surrender: Not available. Premium has to be paid continuously for five years.
- Loan Facility: Not available.
- Pre-requisites: There is no requirement of medical examination of a child.
- Bonus: The declared bonus is INR 52 per INR 1000 sum assured per year.
- Reliable and oldest form of life insurance.
- Very-low premium investment required.
- Option to cover spouse and children as well.
- Returns are very low.
- Cannot be used to fulfill big financial obligations.
- Restricted to government employees.
Postal Life Insurance Guide For Policyholder
Policy Document: Always know your policy number which is mentioned on the given policy document. Policy number is a 13-digit number which is needed at the time of making transactions such as premiums. Even while paying a premium via bank cheque, policy number has to be mentioned on the back of the cheque.
Policy Bond: The policy bond is also a very vital document. This document is needed at the time of making claims or other servicing events related to the policy.
Payment of Premium: Premium payment must be done on a regular basis. Always remember, the policy can be lapsed due to non-payment of premium and then the whole coverage will also not be available. With lapsed policy, one cannot even make any valid claim. Any delay in payment of premium also invites late fees, and thus the premium must be paid in advance on the first day of each month. It is to be noted that grace period is allowed up to the last working day of the month.
Register Person Information: The users must register their mobile number and email addresses. For this, they might have to visit the nearest post office to register their credentials.
For Payment of Premium Via Deduction from Pay: The premium amount can be paid if one opts for deduction from their pay. However, this facility can be only availed with the consent of the employer. If the employee goes for this option, then the premium amount gets regularly deducted from their salary and this amount also reflects on their salary slip.
Transfer of Policy: If the policyholder has received a job transfer, then the postal life insurance policy can be transferred to another zone within India.
Premium Payment Modes: The premium payment modes – cheque or cash, other payment facilities such as online payment, over the counter payment at post offices or via electronic clearance system (ECS).
Lapsing of Policy: The policy can be treated as lapsed, if in case the policyholder fails to pay the premium. In case of the policies of less than three years duration, if more than six premiums have not been paid, then the policy lapses. In case of policies of more than three years duration, if more than twelve premiums have not been paid, the policy lapses.
Nomination: It is very crucial that your policy must have a nominee. The whole crux of getting life insurance falls, if there is no nominee mentioned in the policy. So, as a responsible policyholder, you must select your nominee, who can be a near and dear one from your family. Also check, whether your nominee’s name is mentioned correctly or not in the policy document. Remember, nomination can be done or changed at any point of time.
Loan Facility: If the policy has been in force for three or more years, then the policyholder can avail a loan facility against that particular policy. Loan facility is also available if the policy has accrued a surrender value of at least INR 1000.
For Enquiries: The policyholder can contact at toll free number 1800 180 5232/155232 for enquiry related to postal life insurance policies.
Benefits of Postal Life Insurance Plans
- It is one of most cost-effective life insurance products in the market, which offers comparatively higher returns (bonus) with low premium charged.
- Post office policies enable the policyholders to nominate their beneficiaries. They also have an option to change the nominee details during the tenure of the plan.
- The policyholder is entitled to avail loan facility, provided if the policy has completed three or more years.
- The duplicate policy bond can be easily issued, if the original is lost, burnt or torn.
- The policy can be easily converted from whole life to endowment assurance with reduced sum assured or as per specified rules.
- One can buy more than one PLI policy. However, the total sum assured should not be less than INR 20,000 and exceed INR 10 lakhs.
Eligibility Criteria for Postal Life Insurance Plans
- People who are employed in the following sectors are eligible to buy PLI plans, such as:
1. Central government
2. Reserve Bank of India (RBI)
3. Defense services
4.Financial institutions or public sector undertakings and nationalized banks
5. Department of Posts
6. State government
7. Paramilitary forces
8. Local bodies
9. Educational institutions, extra-departmental agents, and autonomous bodies
- Any individual employed in the private sector is not eligible to purchase postal insurance plans.
- The entry age of the person should be between 19 to 55 years for all post office PLI schemes.
- Except for the child plan, the maximum age to buy a postal children policy is 45 years and the child’s age must be between five and 20 years.
How To Buy Postal Life Insurance Plans Online?
- Log in to the official website of India Post.
- Go to the section “Purchase a Policy”.
- Then, select the quote and select the suitable product and coverage for you.
- Fill-in the details pertinent to personal, employment, medical and other information.
- Generate a proposal by paying the first premium amount.
- Once this is done, you should visit our nearest post office with the printout of the proposal request and other required documents.
- You can view the list of required documents in the “tools and utilities” section.
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