Postal Life Insurance - Facts, Benefits And Plans Online

Postal Life Insurance was launched in India under the British Government. Queen Victoria gave her approval to set it up on February 1^st 1884. A unique distinction of postal life insurance was it covered women workers of Posts and Telegraphs Department in 1894. This was the time when no insurer covered women.

What is postal life insurance? Postal life insurance is a contract entered into by the Government, where money is paid to the life assured if he survives the term period. On death within the term of the plan, money is paid to nominees. Postal life insurance enjoys a Government guarantee. It is just like any traditional life insurance plan, but it is run by the Government.

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Postal Life Insurance – Facts, Benefits And Plans Online

Features of postal life insurance

1. Whole Life Assurance or Suraksha

Under the Suraksha scheme, the assured amount + accrued bonus is payable to the insured, when he attains the age of 80 years or to his nominees on the death of the insured, whichever happens first. The policy must be in force at the time/date of the claim.

The minimum age of entry to the plan is 19 years and the maximum is 55 years. The minimum sum assured is Rs 20,000, while the maximum being Rs 50 Lakhs. You can avail a loan against postal life insurance after 4 years and surrender the postal life insurance after 3 years. The last declared bonus was Rs 85/Rs 1,000 sum assured.

2. Endowment Assurance or Santhosh

In the Santhosh scheme, the life assured is given an assurance up to the sum assured and accrued bonus, till he/she attains a pre-determined maturity age of 35, 40, 45, 50, 55, 58 and 60 years of age.

If the life assured dies, the nominee/legal heir gets the entire sum assured with the accrued bonus. The minimum and maximum entry age remain 19 and 55 years.

The minimum sum assured is Rs 20,000 while the maximum is Rs 50 Lakhs. A loan against PLI can be taken after 3 years and PLI can be surrendered after 3 years. You will have to undergo medical tests, before availing santhosh or endowment assurance. Premiums depend on age of entry and maturity and vary across applicants.

3. Convertible Whole Life Assurance or Suvidha

Suvidha is a Whole Life Assurance with an option to convert to an Endowment Plan. This is within the end of 5 years of opting for the plan. Assurance is up to the extent of sum assured + accrued bonus till maturity age.

If the life assured dies within the term of the plan, the nominee gets the sum assured + accrued bonus. The minimum and maximum entry age remain 19 and 50 years. The minimum sum assured is Rs 20,000, while the maximum being Rs 50 Lakhs. You can avail a loan against postal life insurance after 4 years and surrender the postal life insurance after 3 years. The last declared bonus was Rs 85/Rs 1,000 sum assured.

4. Anticipated Endowment Assurance or Sumangal

Sumangal is a money back plan, which is well suited to citizens who seek periodic returns. The maximum sum assured is Rs 50 Lakhs.  The insured gets to enjoy the survival benefits of Sumangal. Payments already made will not be taken into consideration if the life assured dies within the term of the plan. The full sum assured + accrued bonus is paid to the nominee.

Sumangal has a policy term of 15 and 20 years. The minimum age of entry is 19 years for a 20 year term policy, while the maximum entry age being 40 years. The maximum entry age is 45 years for a 15 year term policy.

Survival benefits are paid periodically under:

• 15 year policy: 20% each on completion of 6, 9 and 12 years. The remaining 40% with accrued bonus on maturity.
• 20 year policy: 20% each on completion of 8, 12 and 16 years. The remaining 40% with accrued bonus on maturity.
• The last declared bonus was Rs 53/Rs 1,000 sum assured.

5. Joint Life Assurance or Yugal Suraksha

Yugal Suraksha is a joint endowment life assurance plan. The condition is one of the spouses must be eligible for PLI Plans.

• You and spouse are covered up to sum assured + accrued bonus.
• The minimum sum assured is Rs 20,000, while the maximum being Rs 50 Lakhs.
• The minimum age for entry of spouse is 21 years and maximum entry age for spouse is 45 years.
• The elder policy holder should not be more than 45 years and couple should be between 21-45 years.
• A loan against PLI can be taken after 3 years and PLI can be surrendered after 3 years.
• Death benefits are paid to either of the survivors on death of spouse or the primary policy holder.
• The last declared bonus was Rs 58/Rs 1,000 sum assured.

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6. Children Policy or Bal Jeevan Bima

The salient features of the scheme:

• Bal Jeevan Bima offers life insurance to children of policy holders.
• This scheme is available for a maximum of 2 children of the policy holder. Children must be between 5-20 years of age.
• Maximum sum assured is Rs 3 Lakhs or up to sum assured of primary policy holder, whichever is less.
• The policy holder must not be over 45 years and must pay premiums on the child plan.
• No premiums are to be paid on child plans on death of the parent (policy holder). The entire sum assured + bonus accrued is paid on completion of the term.
• The last declared bonus was Rs 58/Rs 1,000 sum assured.

Benefits of investing in Postal Life Insurance:

• PLI is a reputed life insurance scheme.
• You can change the nominee at any given time.
• Duplicate policy bond is easily issued if the original is burnt or destroyed.
• A lapsed plan can be revived after 6 unpaid premiums, if it had been in force for 3 years. This plan can also be revived after 12 unpaid premiums, if it had been in force for 3 years.
• PLI can be pledged to avail loans.
• PLI can be assigned to a financial institution.
• PLI can be converted from Whole Life Assurance to Endowment Assurance.

PLI eligibility:

·         Central Government

·         Defence Services

·         Para Military forces

·         State Government

·         Local Bodies

·         Government-aided Educational Institutions

·         Reserve Bank of India

·         Public Sector Undertakings

·         Financial Institutions

·         Nationalized Banks

·         Autonomous Bodies

·         Extra Departmental Agents in Department of Posts

·         Employees Engaged/ Appointed on  Contract basis by central/ State Government where the contract is extendable

·         Employees of all scheduled Commercial Banks.

PLI Bonus Rates:

WLA Rates: Bonus rates for whole life assurance was around Rs 90 / Rs 1000 in 2006, but as of March 2012, it’s around Rs 85 / Rs 1000.

CWA Rates: Bonus rate for convertible whole life assurance was Rs 85 / Rs 1000 in 2012.

EA Rates: Endowment Assurance rates were Rs 58 / Rs 1000 in 2012.

AEA Rates: Anticipated endowment rates were Rs 53/ Rs 1000 in 2012.

YS Rates: Yugal Suraksha rates stood at Rs 58/Rs 1000 in 2012.

PLI Premium Calculator:

With the PLI Calculator, you can calculate premium on the PLI Santhosh Plan.   With the calculator you get, monthly, quarterly, half yearly and yearly premium, as per sum assured, age and term.

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