Did you know that Postal Life Insurance (PLI) is the oldest insurance policy that continues to be offered in India? It was launched as early as 1884. While the PLI insurance policy was first introduced for postal employees, it has been expanded to cover employees of central and state governments, defence and para-military services, PSUs, banks, educational institutions, local bodies, professionals, and companies listed with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). In 1995, Postal Life Insurance was introduced for the rural population (Rural Postal Life Insurance - RPLI). Low premiums and high bonuses of Postal Life Insurance schemes distinguish them from the many policies now offered by other insurers.
Types of Postal Life Insurance Schemes
There are six main postal life insurance schemes are:
Suraksha - Whole Life Assurance
Santosh - Endowment Assurance
Suvidha - Convertible Whole Life Assurance
Sumangal - Anticipated Endowment Assurance
Yugal Suraksha - Joint Life Assurance for couples
Bal Jeevan Bima – Life Insurance for children
Rules for Postal Life Insurance Policies
Terms & Conditions of Postal Life Insurance Schemes
Medical Examination
No medical examination is required for:
PLI policy of up to ₹2 lakhs irrespective of the age limit.
PLI policy of up to ₹5 lakhs for those who are below 40 years
RPLI policy of ₹1 lakh for those who are below 35 years
Premium Payments
If you miss a premium for postal life insurance, you can pay it next month with a fine of 1% of the premium amount per month.
If you pay the premium for postal life insurance early, you can enjoy a rebate of 1% -2%.
For RPLI, rebates of 0.5%, 1%, and 2% are given for advance payments of premiums.
For Endowment Assurance, Whole Life Assurance and Anticipated Endowment Assurance, you can get a rebate of ₹1 per month for every ₹20,000 of sum assured.
Nomination Facility
A PLI policy allows you to nominate someone as the beneficiary. The nominee will receive the sum assured in the event of the death of the policyholder.
Assignment of Policy
You can pass on your PLI policy to another person as a gift. You can also use it as collateral for a loan.
Surrender Facility
In case of Whole Life Assurance, Endowment Assurance, Convertible Whole Life Assurance, and Joint Life Assurance postal life insurance schemes, there is a surrender facility after 3 years. No such facility is available for the Anticipated Endowment Assurance and Children Policy.
Loan Facility
Loans can be taken against Whole Life Assurance and Convertible Whole Life Assurance policies after the completion of 4 years.
In the case of Endowment Assurance and Joint Life Assurance policies, loans can be taken after the completion of 3 years.
No loan facility is available for other postal life insurance policies.
Revival of a Lapsed Postal Life Insurance Policy
If you do not pay the premium for postal life insurance for 6 months for a policy of three years or for 12 months for a policy of more than three years, your policy will get lapsed. Revival is allowed any number of times but only after you have paid the premium for postal life insurance with an interest @ 12% per annum and submitted a good health certificate.
Apart from these rules, check the eligibility, documents required, and other terms and conditions before choosing a postal life insurance scheme.
