Complete information on Postal life insurance (PLI) in 2024

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Postal life Insurance – PLI (Introduction)

Who Can Open Postal Life Insurance (PLI) ?

  • All Central Government/ State Government/PSU/ Bank/ Defence/Railway Employees
  • employees of BSE/NSE Listed companies
  • employees of Recognized Educational institute
  • All Professionals (Doctor,Engineer,Chartered Accountants (CA), Architect,Advocate)
  • All Graduate & Diploma Holders

 Why is PLI better than LIC or any other insurance company in India ?

  • Policy issued by Government of india (on behalf of president of India)
  • Bonus rate published in official gazette of India (every year)
  • Low premium & High Bonus than other companies
  • Death claim amount includes  Sum  Assured & Incurred Bonus

Why is PLI better than SIP or Mutual Fund

  • PLI Provides Insurance with investment and it secures future of family  but SIP/Mutual fund only provides investment
  • PLI is guaranteed by government of india (Assured returns) whereas SIP is subject to market risk

What is Minimum & Maximum age for Postal Life Insurance (PLI)?

  • Minimum Age – 19 Years
  • Maximum Age- 55 Years

What is Minimum & Maximum Sum Assured for Postal Life Insurance (PLI)?

  • Minimum Sum Assured – 20000 
  • Maximum Sum Assured – 50 lacs

Is Loan Facility available in PLI ?

  • Yes, Loan can be taken from Endowment Assurance Yugal Suraksha after completion of 3 years and in respect of Whole Life, Convertible Whole Life Policy after completion of 4 years. Loan facility is not available for AEA Policy
  • Loan amount will 90% of Surrender Value
  • Loan interest will be 10% per annum.It will be compounded half yearly @ 5%

Can I Surrender the Postal Life Insurance (PLI) Policy ?

  • Yes Surrender facility is available after 3 Years of commencement of PLI

Types of PLI Policies

  • Suraksha – Whole Life Assurance 
  • Santosh – Endowment Assurance 
  • Suvidha – Convertible Whole Life Assurance 
  • Sumangal – Anticipated Endowment Assurance
  • Yugal Suraksha – Joint Life Assurance 
  • Bal Jeevan Bima – Children Policy 

 

Complete information on Postal life insurance (PLI) in 2024
Complete information on Postal life insurance (PLI) in 2024

Suraksha – Whole Life Assurance

This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years, or to his/her legal representatives or assignees on death of the insured, whichever occurs earlier, provided the policy is in force on the date of claim.

  • Minimum & Maximum age at entry: 19-55 years
  • Minimum Sum Assured  20000 Maximum  50 lacs
  • Loan facility after 4 years
  • Surrender after 3 years
  • Not eligible for bonus if surrendered before 5 years
  • Can be converted into Endowment Assurance Policy upto 59 years of age of the insurant provided the date of conversion does not fall within one year of the date of cessation of premium payment or date of maturity.
  • Premium paying age can be opted for as 55, 58 or 60 years.
  • Proportionate bonus on reduced sum assured is paid if policy is surrendered
  • Last declared Bonus –  76/- per  1000 sum assured per year

Santosh-Endowment Assurance (Recommended)

Under this scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the predetermined age of maturity i.e. 35, 40,45,5

0,55,58, & 60 years of age.

  • In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured with accrued bonus
  • Minimum & maximum age at entry : 19-55 years
  •  Minimum sum assured  20000, maximum  50 lac
  •  Loan facility after 3 years
  • Surrender after 3 years
  • Not eligible for bonus if surrendered or before completion of 5 year
  • Proportionate bonus on reduced sum assured is paid if policy is surrendered after 5 years
  • Last declared Bonus –  52/- per  1000 sum assured per year

Suvidha – Convertible Whole Life Assurance

A whole Life Policy with the added feature of an option to convert to Endowment Assurance Policy at the end of five years of taking policy.

  •  Assurance to the extent of sum assured with accrued bonus till attainment of age
  •  In case of death, assignee, nominee or legal heir paid full amount of sum assured with accrued bonus
  • Minimum age & Maximum age at entry : 19-50 years
  • Can be Converted into Endowment Assurance after 5 years not later than 6 years of taking policy. If not converted, the policy will be treated as Whole Life Assurance
  • Minimum sum assured  20000, maximum  50 lacs
  • Loan facility after 4 years
  • Surrender after 3 years
  • Not eligible for bonus if surrendered before completion of 5 years
  • Last declared bonus – 76/- per  1000 per year (for WLA policy if not converted to Endowment Assurance)
  • On conversion, bonus of Endowment Assurance will be payable.

Sumangal-Anticipated Endowment Assurance (Money Back)

It is a Money back Policy with maximum Sum assured of  50 lac, best suited to those who need periodical returns. Survival benefits are paid to the insurant periodically. Such payments will not be taken into consideration in the event of unexpected death of the insurant. In such cases, full sum assured with accrued bonus is payable to the assignee, nominee or legal heir.

  • Policy term 15 years & 20 years
  • Minimum age 19, maximum age at entry 40 for 20 years term policy & 45 years for 15 years term policy
  • Survival benefits paid periodically as under:-
  • 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.
  •  Last declared Bonus – 48/- per  1000 sum assured per year

Yugal Suraksha – Joint Life Assurance

It is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI policies.

  • Life cover to both spouses to the extent of sum assured with accrued bonus with a single premium.
  •  Minimum Sum assured  20000, maximum  50 lac
  • Minimum age & Maximum age at entry of spouses : 21- 45 years
  •  Maximum Age of the elder policy holder should not be more than 45 years & the couple should be between – 21 years to 45 years
  • Minimum term of policy 5 years and maximum 20 years
  • Loan facility after 3 years
  • Surrender after 3 years
  • Not eligible for bonus if surrendered before completion of 5 years
  • Proportionate bonus on reduced sum assured is paid if policy is surrendered
  • Death benefits are paid to either of the survivors in the event of death of spouse or main policy holder
  • Last declared bonus  52/- per 1000 sum assured per year

Bal Jeevan Bima-Children Policy

The salient features of this scheme are as under:

  • The Scheme provides Life Insurance cover to children of policy holders.
  • Maximum two children of policy holder (parent) are eligible
  • Children between 5-20 years eligible
  • Maximum sum assured  3 lakh or equal to the sum assured of the parent, whichever is less
  • Policy holders (parent) should not be over 45 years of age.
  • No premium to be paid on the Children policy, on the death of the policy holder (parent). Full sum assured and bonus accrued shall be paid on completion of term
  • Policy holder (parent) shall be responsible for payments of Children policy
  • No loan admissible
  •  Has facility for making it paid up, provided premium are paid continuously for 5 years
  • Surrender facility is not available
  • No medical examination of child necessary, however, child should be healthy and risk shall start from day of acceptance of proposal 
  • Attract the rate of bonus applicable for Endowment policy i.e. last declared bonus rate is  52/-per  1000 sum assured per year

Calculation of PLI Premium (PLI Calculator)

Maturity Amount of PLI

  • Maturity Amount can be calculated using Postinfo Application  of Department of Posts
  • Maturity amount can be also calculated easily by yourself also

Eg- Sum Assured – 10 lakh, Policy type- Santosh (EA), Term – 18 years

       In this case bonus in 18 year will be – 18*52000= 936000

      Maturity amount = sum Assured + Bonus

1000000+936000= 1936000/-

              ** Current Bonus in Santosh (EA) policy is 52/- per 1000 rupees in a year

Death Claim of PLI

  • PLI cover starts from date of Acceptance of policy
  • Suicide will be also covered after 1 Year of Acceptance
  • If Death occurs within 3 years of Acceptance/Revival of Policy, it will be treated Early death claim & inquiry will be  conducted by competent authority in Department of Posts
  • If Death occurs after 3 years of Acceptance, no inquiry will be done
  • Death claim amount = Sum Assured + Bonus (till death)

Eg- Sum Assured – 10 lakh, Policy type- Santosh (EA), Term – 18 years

Death occurs after 5 year of acceptance
Death claim amount = 1000000+ 26000 (52000*5)= 1260000/-

Death occurs after 8 year of acceptance

Death claim amount = 1000000+ 416000 (52000*8)= 1416000/-

Collection of Premium

  • Premium can be paid on any day during the month . If insurant doesn’t pay  premium on time it attracts a penalty(late fine) of 1% total premium. In addition to that 18% GST will be also applicable on penalty (late fine)
  • For below 3 years policy,If policy is due for more than 6 Month policy will be lapsed 
  • For above 3 years policy,If policy is due for more than 12 Month policy will be lapsed 
  • PLI/RPLI Premium can be deposited through cash/cheque in post offices, or online.
  • In case of cash policies, insurants are issued a premium receipt book (PRB) where deposit of premium is duly recorded.
  • If amount is paid in advance rebate will be applicable @1% for 6 Month, 2% for 12 Months or more
  • Facility of online payment of premium is available through https://pli.indiapost.gov.in
  • Facility of Auto Deposit  of PLI Premium from any Bank Account is also available 
  • 5 Methods to Pay PLI Premium/ PLI  Online payment  app- Click Here to Read

Revival of Policy

  • For below 3 years policy,If policy is due for more than 6 Month policy will be lapsed 
  • For above 3 years policy,If policy is due for more than 12 Month policy will be lapsed
  • Revival shall be on any number of occasions during the entire term of the policy.

In this case insurant need to visit the post office with good health certificate (from MBBS Doctor), Kyc documents, PLI Passbook for revival of policy,

Settlement of Other Service request

claimant can prefer his/her claim along with original policy bond, premium receipt book and loan repayment record book, if any at any CPC. After due examination, clear claims are sanctioned by the competent authority. The insurant can take payment through the Post Office.

The following facilities are also offered to policyholders:

  • Change of nomination. (Free Unlimited times)
  • Assignment of Policy for taking loan.
  • Revival of lapsed policy 
  • Issue of Duplicate Policy Bond. (two times) (Fee- 100/-)
  • Conversion of Whole Life Assurance to Endowment Assurance and change of term & sum Assured in respect of Endowment Assurance Policy.
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service performance that can be expected from PLI

The standards that should be expected from PLI are delineated in the Citizen’s Charter of the Department of Posts which has also been posted on the Department’s website. The same are as under :-

Sl. No. Item of work No of days
1. Issue of acceptance letter 15 days
2. Issue of Policy Bond 15 days
3. Settlement of claims on maturity 30 days
4. Settlement of claim on death with nomination 30 days
5. Settlement of claim on death involving investigation 90 days
6. Paid up value 30 days
7. Loan on policies 10 days
8. Change of Address 10 days
9. Change of Nomination 10 days
10. Assignment 10 days
11. Issue of Duplicate Policy Document 10 days
12. Revival of Policy 15 days
13. Conversion of Policy 15 days

 

Grievance (Complaint) Redressal Mechanism

If insurant is not satisfied with service provided by the post office. They can also submit complaints online or offline. Methods of complaints are as below

Official website for PLI information- Click Here

Frequently Asked Questions (FAQs)

Q.When did the PLI Scheme Start?

A. PLI as a scheme has been available since 01.02.1884.

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

A. One policy on each child can be taken, subject to the maximum of two children.

Q If one spouse is working in a Govt. organization but the other is not, is there any scheme in PLI for both?
A. ‘Yugal Suraksha’ scheme under which both can jointly get a policy, after paying a little more Premium.

Q .Can one continue the Policy if one quits the Government Service?
A One can continue by making payment at any post office throughout the country, even after quitting service.

Q.Has a declaration on a proposal form about fitness/medical history any bearing on the policy safe ?

A.Yes, it is always safe and secure to declare truthfully about one’s health condition, ailments or family history while taking a policy .

Q.Can  Sum Assured or Premium change be possible After Acceptance possible?

A. Yes, Sum Assured or Premium change is possible after 3 years of acceptance. Bonus & maturity amount will be changed accordingly.

LOAN IN PLI

Q. Is  loan facility available ?

A.Loan can be taken from Endowment Assurance Yugal Suraksha after completion of 3 years and in respect of Whole Life, Convertible Whole Life Policy after completion of 4 years. Loan facility is not available in AEA policies.

Q.Is home Loan available?

A.No

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

 A.

  •         Endowment Assurance (Santosh) policies after 3 years from date of issue of policy
  •         Whole Life Assurance (Suraksha) policies after 4 years
  •         Interest @ 10 % p.a calculated on six monthly basis.
  •         Loan entitlement is calculated on a prefixed proportion of the surrender value.
  •         Interest is payable once in six months.

SURRENDER

Q    What will be the surrender value of the policy?

A.Surrender value depends on the surrender factor, type and term of policy.

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

A. Proportionate Bonus on reduced sum assured is paid if policy is surrendered after 5 years.

  •  Endowment Assurance policy can be surrendered after 36 months.
  •  WLA policy can be surrendered after 48 months.
  • No surrender of AEA policy.
  • No, Bonus will be given only once policy is completed. 
  • Surrendering any policy is always a loss.

BONUS

Q   What is the frequency of the declaration of bonus?

A.The bonus is declared every year

Q    Whether the Rates of bonus decrease?

A. Bonus rates are subject to valuation of fund and surplus amount.

NOMINATION AND ASSIGNMENT

Q    When can assignment of a policy be made?

A.Policies may be assigned by the policy holder, either: For valuable consideration, loan against policy or by way of gift.

 Q.   Is there any nomination facility in PLI & RPLI

A.     Nominations can be made for a maximum of three persons.

Q.   Why is nomination necessary?

A.  policyholder is advised to nominate a person to whom the sum assured shall become payable in the event of his death, so as to save his legal heirs the trouble and expense of obtaining legal title to the sums payable under the policy.

Q.  What happens in the event of the nominees also pre-deceases ?

A.  Where the policy matures for payment during the life time of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policy holder or his heirs or legal representatives of the holder on the basis of succession certificate as the case may be.

INCOME TAX & REBATE

Q. Is income tax rebate admissible for PLI policies?

A. Available under section 80 C of I.T. Act. toward premium paid. Statement can be download online or may get from any Post office

PLI Online payment

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Complete information on Postal life insurance (PLI) in 2024

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