Today in this article we will discuss about Postal Life Insurance & Rural Postal Life Insurance, how is this work, well it is a Money Back Policy with most sum confident of ₹ 10 lacs, excellent appropriate to individuals who want periodical returns. Here in this blog we will tell you all the details about this insurance programs, such as their schemes, eligibility criteria, benefits, features, and so many other details also, read this post till the end and get all the information.
Postal Life Insurance
Post life insurance was introduced in February 1884 as a pension/insurance plan tailored solely to the needs of postal workers. The system was later extended to employees of universities, central and state governments, central and state network operators, nationalized banks, state-subsidized educational institutions, military officers, defence forces, etc. In addition to offering individual life insurance, Postal Life Insurance or PLI also offers a group insurance plan to cover additional department employees who work in the Postal Department. PLI currently offers more than 43,000 policies with different benefits and features to meet the needs of its customers. India Post Office has approximately 155,669 branches across the country and is a reputable and reliable service provider.
Eligibility Criteria of Postal Life Insurance
Employees of the following organizations may purchase Post Life Insurance plans and plans:
Central Government, State Government, Local Corporations, Nationalized Banks, Autonomous Corporations, Reserve Bank of India, Government Supported Educational Institutions, Extra-Ministerial Agents in the Postal Ministry, Paramilitary Forces, Defence Services, State government, public sector companies and financial institutions.
Most of the PLI Plans can be purchased by people between the ages of 19 & 24
Insured persons can continue to be covered and pay reasonable premiums even after they have retired from government service.
Features of PLI Postal Life Insurance
- These policies are affordable policies and offer high coverage at a low premium. When PLI was established the limit of life insurance was Rs 4,000. It has now been increased to a total of Rs.10 lakh.
- There are approximately 6 different plans available under the PLI and RPLI programs. PLI and RPLI be also give benefits for coverage of children.
- PLI and RPLI offer policy buyers all the options of regular insurance policies, such as, simple nomination, assignment, loan etc.
- The claims process for all types of claims (death, forfeiture and surrender) is time efficient and hassle free. In addition to the basic insurance sum, the insurer grants a bonus that is guaranteed as part of the basic insurance.
- Prospective buyers can calculate their premiums directly from the official website using the online premium calculator tool.
Benefits of PLI Postal Life Insurance
- High returns: PLI insurance plans offer the highest returns at the lowest premiums.
- In addition, PLI has paid policyholders an additional bonus since the first year of its founding.
- Easy Nomination and Assignment: Customers can easily nominate a beneficiary when purchasing a policy. In addition, they can also change their agent during the term of the policy.
- The assignment of the policy to a financial institution when borrowing is also permitted under PLI. In the case of capital-forming guarantee plans, a loan can be obtained after 3 insurance years have expired. For life insurance plans, loans can be taken out after 4 insurance years.
- Reactivation of Expired Policies: Policies with a validity period of less than 3 years will expire if the policyholder has not paid 6 consecutive premiums, while policies with a validity period of more than 3 years will expire if 12 premiums are lost. However, policyholders have the option to reactivate their expired policy.
- Duplicate Policy Document Issuance: Insureds may request a duplicate policy deposit if their original policy is lost or damaged. Contract Type Conversion: Insureds have the right to convert their life insurance plan to an endowment insurance plan.
- In addition, an endowment plan can be converted into another endowment plan according to the insurer’s predefined rules. Tax Benefits: Policyholders can also claim tax benefits for premiums paid and benefits received under the Income Tax Act 1961.
Various Types of Postal Life Insurance
The features of PLI plans are the same as those of the correspondingly named RPLI (Rural Postal Life Insurance) plans. However, there are differences in the limits of the sum insured and the age range. The key features and benefits of the 7 types of insurance plans offered under PLI are listed below:
Whole Life Assurance
- Benefits payable: If the policyholder dies prematurely, the nominee/legal heir/assignee will be paid the sum insured including the accrued bonus.
- Age group: The policy can be taken out by anyone between the ages of 19 and 55.
- Sum Insured: The minimum and maximum sums insured under this plan are Rs 20,000 and Rs 50 lakh respectively.
- Contract Conversion: This plan can be converted to an endowment plan after 1 insurance year.
- Loan Facility: Policyholders can opt for a loan after four years of contract.
- Returning the policy: The policy can be redeemed after three years of policy. However, if the policy is surrendered/ceded before the 5 years are up, no bonus will be paid.
- Pre-Medical Examination: All policy purchasers must undergo a medical examination prior to purchasing a policy.
Convertible Whole Life Assurance
- Policy Conversion: After 5 years of insurance, this policy may be converted to a Capital Guarantee Scheme provided the policyholder is under 55 years of age.
- The policy conversion must take place within the first 6 years after the contract term. Otherwise, this policy will operate as a life insurance plan for the remainder of the policy term.
- Sum Insured: Sum insured for this policy ranges from Rs.20,000 to Rs.50 lakh.
- Loan Facility: Policyholders can take out a loan on this policy
- Return of Policy: This policy can be cancelled after 3 insurance years. If the policy is assigned to a lender or cancelled within 5 years, no bonus will be paid.
- Pre-Policy Medical Examination: Policyholders must undergo a medical examination to take out this policy.
- Other Features: The other benefits and features of the policy are the same as the Endowment Guarantee Plan.
Endowment Assurance
- Endowment Insurance is as same as whole life insurance lets see what is in it:
- Benefits payable: The sum insured with the accumulated deposit will be paid as a benefit on maturity/death to the insured or nominee, as the case may be.
- Age group: Anyone between the ages of 19 and 55 can purchase this plan.
- Sum Insured: For this plan the minimum sum insured is Rs 20,000 and the maximum sum insured is Rs 50 lakh.
- Loan Facility: Insureds may elect to take out a loan against this policy
- Return of Policy: The policy may be redeemed after the three years of the policy have expired.
- Preliminary medical examination: Prospective policyholders must undergo a medical examination.
Convertible Life Assurance
- Policy Conversion: After 5 years of insurance, this policy may be converted to a Capital Guarantee Scheme provided the policyholder is under 55 years of age. The policy conversion must take place within the first 6 years after the contract term. Otherwise, this policy will operate as a life insurance plan for the remainder of the policy term.
- Sum Insured: Sum insured for this policy ranges from Rs.20,000 to Rs.50 lakh.
- Loan Facility: Policyholders can take out a loan on this policy.
- Policy Return: This policy can be cancelled after 3 insurance years. If the policy is assigned to a lender or cancelled within 5 years, no bonus will be paid.
- Pre-Policy Medical Examination: Policyholders are required to undergo a medical examination in order to purchase this policy.
- Other Features: The other benefits and features of the policy are the same as the Endowment Guarantee Plan.
Anticipated Endowment Assurance
- Amount Insured: This money back insurance plan offers a maximum amount insured of Rs.50 lakh.
- Benefits payable: Survivor’s benefits are paid periodically to the policyholder. Bonus is paid.
- Duration of insurance: You can choose a 15-year policy or a 20-year policy.
- With a 15-year policy, survivor benefits are paid at the end of the 6th, 9th, 12th and 15th years. With a 20-year policy, survivor benefits are paid at age 8, 12, 16, and 20. Preliminary medical examination: A preliminary medical examination is required for all policy buyers.
Joint Life Assurance
- Eligibility: Under this plan, both spouses are entitled to life insurance as long as at least one spouse is eligible for a PLI plan.
- Benefits to be paid out: The sum insured is paid out with the sum of the bonus accumulated with a single premium.
- Age Group: To purchase this plan, the policy purchaser must be between the ages of 19 and 55.
- Amount Insured: The minimum amount insured under this plan is Rs.
- 50 lakhs.
- Loan Facility: Policyholders have the option to take out a loan on this policy.
- Cancellation of Policy: This insurance plan can be cancelled after three years.
- Preliminary Medical Examination: A medical examination is required for all prospective policyholders.
Children Policy
- Eligibility: This plan is for children of PLI and RPLI plan members only. This policy can cover up to 2 children per family between the ages of 5 and 20 years. In addition, the primary insured/parent must be under the age of 45.
- Sum Insured: The maximum selectable sum insured is Rs.3 lakh or the principal policy sum insured, whichever is less.
- Premiums: If the primary policyholder dies, future premium payments for child insurance are exempt. The child will receive the payment due after the policy expires. If the child dies during the term of the contract, the father receives the sum insured and the accumulated bonus.
- Bonus: The bonus is paid at the same rate that applies to endowment insurance.
- Other features: No medical examination is required before signing the contract.
- The primary policyholder is responsible for paying the premium for the child policy. There is no possibility of taking out a loan against this policy. If premiums have been paid for at least 5 years, the policy can be converted into a fee-based policy.
Rural Postal Life Insurance
Rural Post Life Insurance was introduced in the rural countryside of India to expand comprehensive insurance coverage for the people living in these areas. Due to the extensive network of post offices in these areas, it was easy for the government to implement these plans in the country’s rural areas. The low cost of ownership in these areas also accelerated the spread of rural postal life insurance. Life insurance can be purchased at a nearby post office or online.
Benefits of Rural Postal Life Insurance
The RPLI post office program can be converted into endowment plans to provide more features and benefits. Policyholders can obtain a loan after 3 or 4 years from the inception date, but this service may not be available for all RPLI policies. Rural Post Office Life Insurance Plan nomination is subject to change according to the needs of the insured. In the event the RPLI Post Office Plan is terminated due to non-payment of premiums, the policy may be reactivated to continue coverage
Insurance Scheme Under Rural Postal Life Insurance
Gram Suraksha
- Eligibility: Anyone between the ages of 19 and 55 can access this policy. Sum insured: The minimum sum insured is Rs 10,000. The maximum sum insured available to clients is Rs 10 lakh.
- Loan Facility: It is possible to obtain a loan on this policy after 4 years of uninterrupted coverage.
- Return Option: After three years of uninterrupted coverage, this policy may be returned to reclaim a portion of the returns.
- The bonus amount in this policy is paid to the policyholder upon reaching the age of 80 or to his dependents upon death.
Gram Santosh
- Eligibility: The minimum entry age for this policy is 19 and the maximum entry age is 55.
- Sum Insured: Policyholders can choose a sum insured between Rs.10,000 and Rs.10 lakh.
- Age of expiry: Policyholders can choose the age of expiry at the time of inception.
- The expiration age of this policy is between 35 and 60 years.
- Loan Facility: Policyholders can access the Loan Facility after three years of uninterrupted coverage.
- Return Policy: This policy is redeemable after three years of coverage.
Gram Suvidha
- Eligibility: The minimum entry age for this policy is 19 and the maximum entry age for this policy is 45. 0.10 Lakhs
- Policy Conversion: This life insurance policy can be converted to an endowment policy after five years.
- Loan Facility: After four years of insurance, policyholders can take out a loan on their outstanding surrender value.
- Return Policy: This policy is redeemable after three years of coverage.
Gram Sumangal
- Contract term: This policy is available in two different contract terms: 15 years and 20 years.
- Eligibility: The minimum entry age for this policy is 19 years.
- The maximum entry age is 40 for a 20-year contract term and 45 for a 15-year contract term.
- Sum Insured: The maximum sum insured for this money back policy is Rs 10 lakh.
- Survivor Benefits: The 15-year policy offers survivor benefits at 6, 9, and 12 years.
- The 20-year policy provides survivor benefits at ages 8, 12 and 16.
Gram Priya
- Police Benefit: This is a shortterm money back policy intended only for people living in rural areas.
- Eligibility: Anyone between the ages of 20 and 45 can participate in this insurance coverage.
- Sum Insured: The minimum sum insured is Rs 10,000 and the maximum sum insured is Rs 10 lakh.
- Contract period: This contract has a fixed contract period of 10 years.
- Survivor’s pension: The survivor’s pension is paid after 4, 7 and 10 years.
Bal Jeevan Bima
- Eligibility: This policy is specifically designed for the children of RPLI members. Children between the ages of 5 and 20 can receive this insurance cover. The father’s age should not exceed 45 years.
- Scope of cover: This policy can be used to insure up to two of the policyholder’s children.
- Sum Insured: The maximum sum insured available under this policy is Rs.
- 1 lakh Special feature: In the event of the unexpected death of the parent, no contribution is made
- Medical examination: The child does not need to undergo a medical examination to be eligible for this insurance.
Statistics
| Financial Year | Number of policies | Total number of active policies | Premium Income |
| 2011 – 12 | 27.14 lakh | 1.35 crore | Rs, 1,559 crore |
| 2012 – 13 | 16.35 lakh | 1.47 crore | Rs. 1,703 crore |
| 2013 – 14 | 8.17 lakh | 1.50 crore | Rs. 1,960 crore |
| 2014 – 15 | 4.77 lakh | 1.52 crore | Rs. 1,984 crore |
| 2015 – 16 | 2.28 lakh | 1.49 crore | Rs. 2,012 crore |
| 2016 – 17 | 3.75 lakh | 1.47 crore | Rs. 2,120 crore |
Procedure to Buy Postal and Rural Life Insurance
You cannot use the RPLI and PLI online plans. So, to complete postal and rural life insurance plans, you need Gramin Dak Sevaks in rural post offices, postal life insurance plan field workers, direct agents, postal workers like the postman, clerical staff, etc.
Postal Insurance Statistics
| Financial year | Number of Policies | Number of Active Policies | Income |
| 2011 – 12 | 4.82 lakh | 50.06 lakh | Rs. 3,681 crore |
| 2012 – 13 | 4.54 lakh | 52.19 lakh | Rs. 4.557 crore |
| 2013 – 14 | 4.33 lakh | 54.06 lakh | Rs.5,352 crore |
| 2014 – 15 | 3.24 lakh | 52.42 lakh | Rs. 5,963 crore |
| 2015 – 16 | 1.98 lakh | 49.31 lakh | Rs. 6,657 crore |
| 2016 – 17 | 2.13 lakh | 46.80 lakh | Rs. 7,234 crore |
Bonus Rate of Postal Life Insurance
| Types of PLI Programs | Bonus Rates |
| Endowment Assurance | 52 per 1,000 of the sum assured amount |
| Whole Life Assurance | *76 per 1,000 of the sum assured amount |
| Convertible Whole Life Insurance | 76 per 1,000 of the sum assured amount (for Whole Life bonus rate) |
| Anticipated Endowment Assurance | 48 per 1,000 of the sum assured amount |
Bonus Rates of Rural Postal Life Insurance
| Types of RPLI programs | Bonus Rates |
| Endowment Assurance | 48 per 1,000 of sum insured |
| Whole Life Assurance | 60 per 1,000 of sum insured |
| Convertible whole life policies | 360 per 1,000 of sum insured (for Whole Life bonus rate) However, upon conversion, the applicable rate will be the Endowment Bonus Tariff. |
| Anticipated Endowment Assurance | 45 per 1,000 of sum insured |
| 10 years Rural PLI | *45 per 1,000 of sum insured |
Individuals Charter
| Services | Turnaround Time in days | |
| Issue of acceptance letter | 15 | |
| Inter-circle transfer of policies | 10 | |
| Issue of policy bonds | 15 | |
| Settlement of claims on maturity | 30 | |
| Settlement of death claim involving investigation | 90 | |
| Settlement of claims on death (with nomination)) | 30 | |
| Settlement of claims on death (without nomination) | 30 | |
| Payment of paid-up value | 30 | |
| Change of address | 10 | |
| Loan for policies | 10 | |
| Change of nomination | 10 | |
| Issue of duplicate policy document | 10 | |
| Assignment | 10 | |
| Conversion of policy | 15 | |