Postal Life Insurance is an insurance scheme it was established on 1st February 1884 and is currently managed by the Department of Posts under the Government of India. The primary purpose of the scheme is to ensure the protection of government employees through appropriate life insurance coverage.
In the Postal Life Insurance scheme, the Government of India offers to Central and State Governments, public sector undertakings, Government Aided Educational Institutions, nationalized banks, Universities, etc. With the PLI scheme, they can avail of life insurance benefits at extremely low premium limits as compared to policies available in the market. The maximum sum assured offered under this scheme is Rs. 50 lakh.
Postal life insurance covers the life of customers against death or disability and is the same as the term life insurance or any other life insurance product. Postal life insurance offers a different range of life insurance products such as Whole life insurance, Annuity insurance, term insurance, endowment assurance, joint life assurance, etc. Similar to PLI life insurance, there is a Rural Postal Life Insurance (RPLI) plan to provide financial coverage to people living outside cities and towns.
What is Postal Life Insurance (PLI)?
Postal Life Insurance (PLI) in India is a life insurance scheme provided by the Department of Posts, Ministry of Communications, and Government of India. It is one of the oldest and most trusted insurance schemes in the country. PLI is designed to provide life insurance coverage to government employees, including employees of the Department of Posts, as well as individuals working in other government organizations.
The primary objective of Postal Life Insurance is to offer affordable life insurance solutions to government employees, ensuring financial security and protection for their families in the event of untimely death or disability. PLI provides various insurance policies that cater to the diverse needs and preferences of insured individuals.
Features of Postal Life Insurance
- Nomination facility: The policyholder can nominate his/her beneficiary as nominees under the scheme, and can also make changes to the nomination list.
- Loan facility: A loan facility is available against this policy. Policyholders can even take a loan against this scheme as PLI plans can be pledged as collateral. However, this can be done only after 3 years of maturity for the Endowment Assurance plan and 4 years of the policy period for the Whole Life Insurance plan.
- Policy Conversion: Policyholders can convert from the Whole Life Assurance plan to the Endowment Assurance Plan and vice versa.
- Duplicate Policy: Policyholders can get a duplicate policy document policyholder if he/she has lost the original document.
- Policy Revival: Policyholders can revive a lapsed Postal Life Insurance for government employees. The policy can be revived when the policy has lapsed under the following conditions:-
- A policy that is less than three years old and lapsed after 6 successive non-payment of premium.
- A policy that is more than three years old and lapsed after 12 successive non-payment of premium.
Postal Life Insurance Benefits
- Premium: Premiums are low as compared to other insurance products available in the market.
- Premium Frequency: Premium is paid either monthly, half-yearly, or annually as per your requirement.
- Additional facilities: Additional facilities are offered under this policy such as Assignment, Loan, Conversion, Surrender, and Paid-up Value options.
- Nomination Facility: In this policy, the policyholder can nominate the beneficiaries.
- Tax Benefits: Policyholders can avail of tax benefits under Section 88 of the Income Tax Act, 1961
- Easy Claims: In the PLI scheme, the claim settlement process is easy and quick.
- Passbook facility: Policyholders can track payment of premiums with the passbook facility.
- Discounts: If advance premium payments are made for a policy period of six months, or 12 months policyholders can avail of a discount worth 1% and 2% of the premium value.
Types of Postal Life Insurance Plans
There are six types of Postal life insurance schemes available under the Postal Life Insurance Company:
1. Whole Life Insurance( Suraksha)
The Whole Life Assurance plan offers coverage to the policyholder up to the age of 80 years or the nominee after the death of an insured. In this plan, the policyholder can avail of a maturity benefit along with accrued bonus while financially securing their loved ones in case of an unfortunate event.
Key Features and Eligibility:
- Age Limit: Minimum 19 years to maximum 55 years
- Sum Assured: The minimum sum assured offered is Rs. 20,000 and the maximum is Rs. 50 lakh
- Loan facility: available after completion of 4 years
- Policy surrender: after completion of 3 years
- Premium: Based on the age of the insured, sum assured, etc.
2. Joint Life Insurance( Yugal Suraksha)
In joint life insurance Postal Life Insurance plan, the benefits can be extended to the spouse of an insured. This plan gives benefits to them while paying a single premium amount.
Key Features and Eligibility:
- Age Limit: Minimum 21 years to maximum 45 years
- Sum Assured: The minimum sum assured offered is Rs. 20,000 and the maximum is Rs. 50 lakh
- Loan facility: available after completion of 3 years
- Policy surrender: after completion of 3 years
- Policy Term: Minimum 5 years to maximum 20 years
- Premium: Based on the age of the insured, sum assured, etc.
3. Endowment Life Insurance( Santhosh)
In the Endowment life insurance plan, the policyholder can avail of the sum assured amount along with the collected bonus as maturity benefits. The nominee of a policyholder will receive the death benefits in case of the unfortunate death of an insured.
Key Features and Eligibility:
- Age Limit: Minimum 19 years to maximum 55 years
- Sum Assured: The minimum sum assured offered is Rs. 20,000 and the maximum is Rs. 50 lakh
- Loan facility: available after completion of 3 years
- Policy surrender: after completion of 3 years
- Premium: Pay the premium Based on the age of the insured, sum assured, etc.
4. Convertible Whole Life Insurance( Suvidha)
A Convertible Whole Life Assurance policy can be converted into an Endowment plan after the completion of five years. This conversion should be done below the age of 55 years.
Key Features and Eligibility:
- Age Limit: Minimum 19 years to maximum 50 years
- Sum Assured: The minimum sum assured offered is Rs. 20,000 and the maximum is Rs. 50 lakh
- Loan facility: available after completion of 4 years
- Policy surrender: after completion of 3 years
- Premium: Based on the age of the insured, sum assured, etc.
5. Anticipated Endowment Assurance (Sumangal)
The Anticipated Endowment assurance plan is well-suited for people who might need periodical returns. It is a money-back policy with a sum assured maximum amount of Rs. 50 Lakhs and the plan offers survival benefits to the insured periodically. The full sum assured along with the bonus is paid to the nominee or legal heir of an insured in case of the death of the policyholder.
Key Features and Eligibility:
- Age Limit: Minimum 19 years to maximum 45 years(15 years PT), Minimum 19 years to maximum 40 years(20 years PT),
- Sum Assured: The minimum sum assured offered is Rs. 20,000 and the maximum is Rs. 50 lakh
- Premium: Based on the age of the insured, sum assured, etc.
- Policy Term: 15 years and 20 years
- Survival Benefit: For 15 years Policy Term - 20% of the sum assured is paid after 6, 9, and 12 years. 40% of the sum assured with a bonus is paid on maturity. For 20 years Policy Term - 20% of the sum assured is paid after 8 years, 12 years, and 16 years. 40% of the sum assured with a bonus is paid on maturity.
6. Children Policy (Bal Jeevan Bima)
The children's policy provides insurance coverage to the children of the insured where no medical examination is needed and a maximum of two children in a family are eligible for this scheme.
Key Features and Eligibility:
- Policyholder Age Limit: Maximum 45 years
- Children's Age Limit: 5 - 20 years
- Loan Facility: Not available
- Sum Assured: Maximum sum assured offered Rs. 3 lakh or equal to the sum assured of the policyholder.
- In case of the death of the policyholder, no premium has to be paid for the Children Policy.
Postal Life Insurance FAQs:
What is Postal Life Insurance Scheme?
A postal life insurance scheme is available for Government and Semi-Government employees. The insurance coverage provided by Postal life insurance is higher than other private insurance companies in that premium.
How to Check Postal Life Insurance Policy Status?
Postal life insurance policy status can be checked online by logging into the official website of the Indian Post. On this website, click ‘Customer Care’ from this dropdown list, the policyholder has to pick up the option for complaint registration. From this category, select ‘Postal Insurance’ and fill the form with the query for providing the information on the latest status.
How Many Types of Postal Life Insurance Policy?
- 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)
Can I Pay Postal Life Insurance Premium Online?
Yes, you can pay a postal life insurance premium online by using the customer id of a policyholder. You can pay the premium of Postal Life Insurance online by using Net Banking, Debit Card, and Credit Card as per your convenience.
Is Postal Life Insurance Covered Under 80C?
Yes, you can get tax benefits for postal life insurance under section 80C of the income tax Act 1961.
Conclusion
Postal Life Insurance in India stands as a reliable and trusted life insurance scheme to the government's commitment to providing affordable life insurance coverage to government employees. With its range of benefits, policy options, and digitization initiatives, PLI contributes to the financial well-being of policyholders and their families, fostering a sense of security and stability for the future.