Postal-Life-Insurance-Scheme
By Okbima 16 Dec 2023 143

Postal Life Insurance: Benefits, Types, Eligibility & Required Documents

 

The Postal Life Insurance (PLI) Scheme provides life insurance to specific groups like government employees, teachers, and some professionals. PLI offers competitive premiums, government backing, and bonus payouts. Let’s know its benefits, types, eligibility criteria & what are the required documents.

 

What Is A Postal Life Insurance Scheme?

The Postal Life Insurance (PLI) Scheme in India offers life insurance to government employees, teachers, and certain professions. Backed by the government, PLI has competitive rates and bonus payouts. You can open this scheme by visiting your nearby post office.

 

Benefits Of Postal Life Insurance Scheme

The Post Office PLI Scheme offers many benefits to policyholders, including affordable premium rates, flexible payment options, and competitive interest rates on investments. 

  • Government Backing: It's run by the Indian government, PLI schemes come with a sense of security and stability.

  • Competitive Premiums: PLI premiums are lower compared to some private insurance companies.

  • Profit Sharing: Policyholders can participate in profits through bonuses, to increase the payout.

  • Flexible Options: PLI offers different plans like whole life, rural, and money back to suit various needs. These plans provide benefits like death benefits, maturity benefits, and regular payouts.

  • Easy Accessibility: You can manage your PLI policy through local post offices, making it a convenient option.

 

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Types Of PLI Scheme Post Office

The Postal Department of India offers 6 types of life insurance policies under the Post Office PLI Scheme, Here we have mentioned the different types of postal life insurance plan details to make you a wise decision. 

1. Whole Life Assurance Policy (Suraksha)

Whole Life Assurance Policy (Suraksha) offers lifelong financial protection, combining insurance coverage with investment benefits, ensuring security for your loved ones while building a stable financial future.

  • Death Benefit: If the policyholder dies during the policy term, the sum assured amount along with any accumulated bonuses are paid to the nominee.

  • Maturity Benefit: This policy pays out the sum assured amount with accumulated bonuses upon reaching 80 years of age, whichever comes sooner - death or 80th birthday.

  • Eligibility: Anyone between 19 and 55 years old can apply for this policy.

  • Flexibility: Premiums can be paid monthly, quarterly, half-yearly, or annually.

  • Loan Facility: After 3 years of holding the policy, you can avail a loan against the surrender value.

 

2. Convertible Whole Life Assurance Policy (Suvidha)

Convertible Whole Life Assurance Policy (Suvidha) is a unique plan offered under Postal Life Insurance. It combines features of whole life and endowment assurance, providing flexibility for your life insurance needs.

  • Death Benefit: In case of the policyholder's death, the full assured amount along with accrued bonuses is paid to the nominees. This benefit applies throughout the entire policy term, no matter when the conversion happens (if at all).

  • Maturity Benefit: The assured amount and accumulated bonuses are paid to the policyholder on reaching a pre-selected maturity age .

  • Eligibility: Individuals aged 19-55 years can apply for Suvidha.

  • Flexibility: You can choose to continue as a whole life policy throughout your lifetime or convert it to an endowment policy after 5 years (but before reaching 56 years of age). An endowment policy pays the assured sum and bonuses only at the time of maturity.

  • Loan Facility: After 4 years of holding the policy, you can avail of a loan against the cash value of your Suvidha policy.

 

3. Endowment Assurance Policy (Santosh)

The Endowment Assurance Policy (known as Santosh) offers a combination of insurance coverage and investment benefits, ensuring financial security and growth for policyholders over a specified period.

  • Death Benefit: If the policyholder dies during the policy term, the sum assured along with any accrued bonuses is paid to the nominees.

  • Maturity Benefit: If the policyholder survives until the policy matures, they receive the sum assured and any accumulated bonuses.

  • Eligibility: PLI is available to government employees, teachers, and certain professions, and may have age limitations.

  • Flexibility: Policyholders can choose a pre-determined maturity age at the time of policy inception, with options like 35, 40, 45, etc. There might also be an option to extend the maturity age later. The policy can be surrendered after a few years, but there might be some restrictions on bonuses received.

  • Loan Facility: After 3 years, policyholders can avail of a loan against the surrender value of their Santosh policy. 

 

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4. Anticipated Endowment Assurance Policy (Sumangal)

Sumangal Endowment Assurance Policy ensures financial stability by combining insurance coverage with investment benefits, providing a secure future for policyholders and their families.

  • Death Benefit: In case of the policyholder's death during the policy term, the full Sum Assured along with accrued bonuses is paid to the nominee or beneficiary.

  • Maturity Benefit: The 15 year and 20 year Sumangal policies offer regular payouts during the policy term, providing financial assistance and a final payout at maturity. 

  • Eligibility: PLI is available to individuals between 19 and 45 years old for a 15 year term and 19 and 40 years old for a 20-year term.

  • Flexibility: Sumangal offers some flexibility compared to traditional endowment plans. You receive periodic payouts throughout the policy term, providing liquidity in case of need.

  • Loan Facility: After 3-4 years of holding the policy, you may be eligible to take a loan against the Sum Assured.

 

5. Joint Life Assurance Plan (Yugal Suraksha)

Yugal Suraksha offers a comprehensive Joint Life Assurance Plan, ensuring financial security for couples. With tailored coverage and benefits, it protects against life's uncertainties.

  • Death Benefit: Yugal Suraksha pays out the assured amount with accrued bonuses upon the death of either spouse. This benefit provides financial security for the surviving spouse.

  • Maturity Benefit: If both spouses survive until the policy term ends, you'll receive the sum assured along with accrued bonuses. 

  • Eligibility: PLI is available to married couples or those in a joint insurable relationship.  

  • Loan Facility: After 3 years from starting the policy, you may be able to avail of a loan against the surrender value of the policy.

 

6. Children Policy (Bal Jeevan Bima)

Bal Jeevan Bima ensures financial security for children, providing insurance coverage for unexpected events. It protects their future, offering peace of mind to parents.

  • Death Benefit: This policy provides financial support to your child in case of your unfortunate death during the policy term. 

  • Maturity Benefit: If your child survives the policy term, they will receive the sum assured amount along with accumulated bonuses. This can be a helpful source of funds for their future education or other needs.

  • Eligibility: Parent must be between 18-45, child 5-20. Max 2 children. Can be linked to existing whole life or endowment policy with sum assured not exceeding parent's policy.

  • Flexibility: You can choose between two policy term options, either 15 years or 20 years. The parent, who is the policyholder, is responsible for paying the premiums throughout the selected policy term.

  • Loan Facility: Unfortunately, loans are not available on the Children Policy.

 

Bonus Rates Of Post Office Insurance In 2023-24

Here we have provided the list of the bonus rates of the Post Office PLI Scheme of 2023-24 that will help you to identify the different bonus rates in different types of plans.

Types of Insurance Plan

Bonus Rates of the PLI Scheme

Whole Life Assurance (Suraksha policy)

Rs. 76/- per 1000 SA per year

Convertible Whole Life Assurance (Suvidjha policy)

Rs.76/- per 1,000 SA per annum (whole life insurance premium if not converted into EA, i.e. endowment assurance bonus)

Endowment Assurance (Santosh)

Rs. 52/- per 1000 SA per year

Joint Life Assurance (Yugal Suraksha policy)

Rs. 52/- per 1000 SA per year

Anticipated Endowment Assurance (Sumangal policy)

Rs. 48/- per 1000 SA per year

Bal Jeevan Bima – Children Policy

Rs. 52/- per 1000 SA per year

 

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Eligibility Criteria To Open Postal Life Insurance Scheme

Employees from various organizations are eligible for the postal life insurance scheme. Below, we have mentioned the types of organizations whose employees are eligible.

  • Government Employees: Individuals working in various government departments employees such as in central or state are eligible.

  • Local Bodies: Person employed by municipal corporations, panchayats, and other localized government entities.

  • Employees Engaged/ Appointed on a Contract basis by Central/ State Government: Individuals on extendable contracts with federal or state levels.

  • Non-government Professionals: Includes Doctors, Engineers, Management Consultants, Chartered Accountants, Architects, Lawyers, and Bankers, who meet certain professional criteria or are registered with official bodies.

  • Employees of Listed Companies on NSE (National Stock Exchange) and BSE (Bombay Stock Exchange): Employees who are working in the listed companies of NSE or BSE are eligible for this scheme.

 

Documents Required For Post Office Insurance

Buying a Postal Life Insurance Scheme (PLI) plan requires some documents to verify your identity, age, address, and health status. The following is a list of documents typical for buying a PLI plan.

  • Age Proof: Any official document that verifies your date of birth is considered valid age proof such as a Birth certificate, Passport, Aadhar card, or PAN card.

  • Address Proof: To validate your address, you will need to provide documentation such as an Aadhar Card, Voter ID Card, Rent Agreement (if applicable), Bank Passbook, or Statement with the address.

  • Identity Proof: For establishing your identity, you will be required to produce an official ID such as an Aadhar Card, Passport, PAN Card, Driving License, and Government/Defense ID Card.

  • Medical Examiner’s Declaration: If your chosen PLI plan requires a medical examination, you'll need a declaration or a certificate from an authorized medical examiner stating the outcome of the medical check-up.

  • Certificate by Immediate Supervisor (if applicable): If you are a government employee, your departmental head or immediate supervisor might have to provide a certificate validating your employment and other details as per the PLI criteria.

  • Certificate by a DO (Development Officer) FO (Field Officer) or PLI Agent: This is a verification by the authorized PLI representative, who assists in the process of obtaining the insurance.

  • Declaration of Spouse: If your spouse is included in the insurance plan, or if their health status or other factors are relevant to your PLI plan, a declaration from them may also be needed.

 

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How To Buy A Postal Life Insurance Policy?

There are two main ways to initiate the process of buying a Postal Life Insurance (PLI) policy that is online and offline.

1. Online

  • Visit the India Post “Purchase Policy” page.

  • Enter your name, mobile number, email ID, pin code, date of birth & other required details.

 

 

  • Click on the “Get Quote” button.

  • Based on your location, a nearby agent will contact you & help you to open the “Postal Life Insurance” scheme.

 

2. Offline

  • Visit your nearest India Post office.

  • Inquire about available PLI schemes and choose the plan that suits your needs.

  • Get the application form for the chosen PLI scheme.

  • Fill out the application form with the required details.

  • Submit the completed application form along with any required documents and the initial premium payment.

 

Unexpected Events Happen, Be Prepared: Get Life Insurance Coverage!

 

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PLI Interest Rate 2024: PLI Scheme & Eligibility

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 Conclusion

In conclusion, Postal Life Insurance offers many benefits such as flexibility in premium payment, competitive interest rates, and coverage for various life events. With different types of policies available to suit different needs, individuals can choose a plan that best fits their requirements and budget. Eligibility criteria are simple, and the required documents are minimal, making it a convenient option for individuals looking to secure their financial future. For a better financial future, you can contact “Our Experts”.

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