Rural Postal Life Insurance (RPLI) - Plans, Benefits, Eligibility

Updated On: 2023-07-13

Author : Team Policybachat

Life insurance plays a crucial role in providing financial security and peace of mind to individuals and their families. However, in a country as vast and diverse as India, ensuring access to life insurance in rural areas can be challenging. Recognizing this need, the Indian government introduced the Rural Postal Life Insurance (RPLI) scheme.

Rural Postal Life Insurance (RPLI) is a specialized life insurance program initiated by the Department of Posts, Government of India. It is specifically tailored to cater to the insurance requirements of individuals residing in rural areas of the country. With a vast network of post offices spread across rural India, the Department of Posts is uniquely positioned to offer insurance services to those who may have limited access to formal financial institutions.

The RPLI scheme offers a range of insurance policies, including endowment policies and whole-life policies, designed to meet the diverse needs and preferences of rural customers. These policies provide coverage against the risk of death, offering financial protection to the policyholder's family in the event of their untimely demise.

What is Rural Postal Life Insurance?

Rural Postal Life Insurance (RPLI) is a life insurance scheme offered by the Department of Posts, Government of India. It is specifically designed to cater to the insurance needs of people living in rural areas of the country. RPLI aims to provide affordable life insurance coverage to individuals residing in rural areas who may have limited access to financial services. The main purpose of the rural postal life insurance scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and working women of rural areas and also to spread insurance awareness among the rural population.

The scheme was launched in 1995 and is managed by the Department of Posts, which has an extensive network of post offices across the country, including in remote and rural areas. RPLI offers various insurance plans, including endowment policies and whole-life policies, to meet the diverse needs of rural customers. The scheme offers life insurance coverage at affordable premium rates, making it accessible to a wide range of rural customers. The premiums can be paid in monthly, quarterly, or yearly instalments, providing flexibility to policyholders based on their financial capabilities.

RPLI has gained popularity in rural India due to its simplicity, affordability, and trust associated with the postal system. In recent years, the digitization of RPLI services has further enhanced its accessibility and convenience for rural customers, enabling them to avail of insurance services online, right from the comfort of their homes.

Benefits of Rural Postal Life Insurance

Rural Postal Life Insurance (RPLI) offers several benefits to individuals residing in rural areas of India. Some key benefits include:

  • Affordability: RPLI provides life insurance coverage at affordable premium rates, making it accessible to individuals with varying income levels in rural communities. The flexible premium payment options allow policyholders to choose instalment frequencies that suit their financial capabilities.
  • Financial Security: RPLI ensures financial security for policyholders and their families in the event of the policyholder's untimely demise. The insurance payout provides a much-needed financial cushion to dependents, helping them cope with the loss and maintain their standard of living.
  • Rural Accessibility: With an extensive network of post offices in rural areas, RPLI ensures that insurance services are easily accessible to individuals in remote and underserved regions. This eliminates the need for long-distance travel and enables policyholders to conveniently access insurance facilities closer to their homes.
  • Simple Application Process: RPLI offers a straightforward and hassle-free application process. The documentation requirements are minimal, making it easier for individuals in rural areas to apply for insurance coverage. This simplicity ensures that even those with limited literacy or financial awareness can avail of the benefits of life insurance.
  • Policy Flexibility: RPLI offers a range of insurance policies, including endowment policies and whole-life policies, allowing individuals to choose the one that aligns with their financial goals and requirements. Policyholders can select coverage amounts and policy durations that suit their needs, providing flexibility and customization options.
  • Maturity Benefits: In addition to the death benefit, RPLI policies also provide maturity benefits. Policyholders receive the accumulated amount at the end of the policy term if they survive the policy duration. This serves as a valuable savings avenue for individuals in rural areas, helping them accumulate funds for future needs.

Types of Rural Postal Life Insurance Plans

There are six types of Rural Postal Life Insurance Schemes available under the Postal Life Insurance Company:

Whole Life Assurance (Gram Suraksha)

This is a whole life insurance policy that provides coverage throughout the policyholder's lifetime. It offers a death benefit payable to the nominee in the event of the policyholder's demise.

Eligibility Criteria:

  • Minimum Entry Age: 19 Years
  • Maximum Entry Age: 55 Years
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 10 lakhs
  • Loan facility: available after completion of 4 years
  • Policy surrender: after completion of 3 years
  • Not eligible for the bonus if surrendered before 5 years
  • Premium paying age can be opted for as 55,58 or 60 years
  • Can be converted into Endowment Assurance Policy for up to 59 years of age
  • Last declared Bonus is Rs. 60/- per Rs.1000/- sum assured per year
  • A proportionate bonus on the reduced sum assured is paid if the policy is surrendered

Convertible Whole Life Assurance (Gram Suvidha)

Gram Suvidha policy is a Whole Life Assurance that provides both death benefits and maturity benefits. In case of the policyholder's untimely death, the nominee receives the death benefit. It provides an option to convert to an Endowment Assurance Policy at the end of five years of taking the policy.

Eligibility Criteria:

  • Minimum Entry Age: 19 Years
  • Maximum Entry Age: 45 Years
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 10 lakhs
  • Loan facility: available after completion of 4 years
  • Policy surrender: after completion of 3 years
  • Not eligible for the bonus if surrendered before the completion of 5 years
  • Last declared Bonus is Rs. 60/- per Rs.1000/- per year
  • On conversion, a bonus of Endowment Assurance will be payable.

Endowment Assurance (Gram Santosh)

This plan is designed to provide financial security and support for the education and future of children in rural areas. Under this scheme, the proponent is given assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-determined age of maturity i.e. 35, 40, 45, 50, 55, 58 & 60 years of age.

Eligibility Criteria:

  • Minimum Entry Age: 19 Years
  • Maximum Entry Age: 55 Years
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 10 lakhs
  • Loan facility: available after completion of 4 years
  • Policy surrender: after completion of 3 years
  • Last declared Bonus is Rs. 48/- per Rs.1000/- sum assured per year
  • Not eligible for the bonus if surrendered before the completion of 5 years
  • Proportionate bonus on the reduced sum assured is paid if the policy is surrendered after 5 years.

10 Years Rural PLI (Gram Priya)

It is a short-term money-back scheme that gives life cover to the extent of the Sum Assured for 10 years. Survival benefits are paid after 4 years- 20% after 7 years- 20%, and after 10 years – 60% with accrued bonus.

Eligibility Criteria:

  • Minimum Entry Age: 20 Years
  • Maximum Entry Age: 45 Years
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 10 lakhs
  • Last declared Bonus is Rs. 45/- per Rs.1000/- sum assured per year
  • No interest is charged for up to one year in case of natural calamities like floods, earthquakes, etc.

Anticipated Endowment Assurance (Gram Sumangal)

This plan is a Money Back Policy, best suited to those who need periodical returns. In case of the unfortunate demise of the policyholder during the policy term, the full sum assured is paid to the nominee as the death benefit. This ensures financial protection and support for the family in the event of the policyholder's death. Survival benefits are paid to the insurant periodically. Such payments will not be taken into consideration in the event of the unexpected death of the insured.

Eligibility Criteria:

  • Minimum Entry Age: 19 Years
  • Maximum Entry Age: 40 Years
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 10 lakhs
  • Policy Term: 15 years and 20 years
  • Last declared Bonus is Rs. 45/- per Rs.1000/- the sum assured per year
  • 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with accrued bonus on maturity
  • 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with accrued bonus on maturity.

Children Policy (Bal Jeevan Bima)

It is a child insurance policy designed to secure the future of children in rural areas. It provides a lump sum payment to the child upon reaching a specified age, ensuring financial support for their education or other life milestones. In case of the unfortunate demise of the child, the sum assured is payable to the parent or legal guardian.

Eligibility Criteria:

  • Minimum Entry Age: 5 Years
  • Maximum Entry Age: 20 Years
  • Maximum two children parents are eligible
  • Maximum Sum Assured: 1 Lac
  • Maximum Age of Parent: 45 years
  • Loan facility is not available
  • Surrender facility is not available
  • No medical examination of the child is necessary
  • Attract the rate of bonus applicable for the Endowment policy (Santosh) i.e. last bonus rate is Rs. 48/- per Rs. 1000/- the sum assured per year.

FAQs - Rural Postal Life Insurance

Does Rural Postal Life Insurance Come Under a Tax Saving Scheme?

Yes, Rural Postal Life Insurance (RPLI) policies in India are eligible for tax benefits under the Income Tax Act, of 1961. The premiums paid towards RPLI policies are eligible for tax deductions under Section 80C of the Income Tax Act.

How Many Types of Rural Postal Life Insurance Policy?

Rural Postal Life Insurance (RPLI) in India offers multiple types of insurance policies to cater to the diverse needs of individuals residing in rural areas. The specific types of RPLI policies include:

  • Whole Life Assurance
  • Convertible Whole Life Assurance
  • Endowment Assurance
  • 10-Year Rural PLI
  • Anticipated Endowment Assurance
  • Children Policy

How to Check Account Details on Rural Postal Life Insurance?

To check the account details of your Rural Postal Life Insurance (RPLI) policy, you can follow these steps:

  • Visit the official website of the Department of Posts or the RPLI online portal.
  • If you already have an account, log in using your username and password. If you haven't registered yet, you may need to create an account by providing your policy details and personal information.
  • Once logged in, you will typically find an account dashboard or a section dedicated to policy details and account information.
  • Within the policy details section, you may find options to view account statements or transaction history. This will allow you to check premium payments, policy status, maturity dates, and other relevant information.

How to See Rural Postal Life Insurance Policy Status?

To check the status of your Rural Postal Life Insurance (RPLI) policy, you can follow these steps:

  • Visit the official website of  Postal Life Insurance
  • Login to your account using your username and password. If you haven't registered yet, you may need to create an account by providing your policy details and personal information.
  • Once logged in, you will typically find an account dashboard or a section dedicated to policy details and account information.
  • Within the policy details section, you may find options to view premium payments, policy status, maturity dates, and other relevant information.

How to Surrender Rural Postal Life Insurance?

To surrender your Rural Postal Life Insurance (RPLI) policy, you can follow these general steps:

  • Visit the Post Office
  • Carry Required Documents
  • Fill Surrender Form
  • Submit Documents and Forms
  • Obtain Acknowledgment Receipt
  • Receive Surrender Value

Conclusion

Rural Postal Life Insurance (RPLI) plays a vital role in providing affordable life insurance coverage to individuals residing in rural areas of India. With its establishment, the Department of Posts aimed to bridge the gap between rural communities and life insurance services, ensuring financial security and peace of mind for policyholders and their families.

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