Postal Life Insurance

Postal Life Insurance or better known as PLI is the oldest and the most popular insurance company which was launched in India way back in 1884 during British rule. Postal Life Insurance was formed keeping in mind the well-being of the employees in the postal department and later the same was extended to the employees working in the Telegraph Department. Postal Life Insurance has a very noteworthy certification of being the 1st life insurance company by offering life cover to the female employees in 1894. It now has a huge coverage amongst the employees of Central as well as State Public Sector Undertakings, Central and State Governments, Universities, Nationalized Banks, Government-funded Educational institutes, and many more. Postal Life Insurance is an integral part of everyone’s life and can add great value to you and your family. Here, we will take you through Postal life insurance plan details for a better understanding.

Postal Life Insurance plans can be classified into 6 different categories with the respective plans which are as below:

1. Whole Life Assurance – Suraksha
2. Convertible Whole Life Assurance- Suvidha
3. Endowment Assurance- Santosh
4. Joint Life Assurance- Yugal Suraksha
5. Children Policy- Bal Jeevan Bima
6. Anticipated Endowment Assurance- Sumangal

Let us see the above plans one by one briefly.

1. Postal Life Insurance Whole Life Assurance – Suraksha

Under this plan, the insured amount together with the accumulated bonus is being paid to the insured person on the below two conditions whichever happens earlier. Also, you can get a loan on this plan after 4 years. You can also choose to surrender the plan after 3 years. The last bonus which was declared was INR 85/ 1000 sum insured each year.

1. Reaching 80 years of age
2. To the insured person’s legal heirs or the assignees upon the death of the insured person

Eligibility: Entry Age: Minimum -19 years and Maximum – 55 years
Sum Insured: Minimum- INR 20000 and Maximum – INR 50 Lakhs

2. Postal Life Insurance Convertible Whole Life Assurance- Suvidha

A whole life insurance plan with a choice to convert the same plan to the Endowment Assurance Plan. This conversion can be done after the end of the 5th year of the plan Insured amount is equal to the Sum Insured with accumulated bonus until the age of maturity. You can get a loan on this plan after 4 years. You can choose to surrender the plan after 3 years. The last bonus which was declared was INR 85/ 1000 sum insured each year if the plan is not changed to an Endowment Assurance plan.

Eligibility: Entry Age: Minimum -19 years and Maximum – 50 years
Sum Insured: Minimum- INR 20000 and Maximum – INR 50 Lakhs

3. Postal Life Insurance- Endowment Assurance- Santosh

A plan which gives an assurance to the proposer and is equal to the Sum Insured with accumulated bonus until the proposer reaches the pre-determined maturity age of 35, 40,45,50,55, 58 and 60 years. In the event of the death of the insured person, the legal heir, nominee or the assignee also receive the Sum Insured with accumulated bonus. You can get a loan on this plan after 3 years. You can choose to surrender the plan after 3 years. The last bonus which was declared was INR 58/ 1000 sum insured each year.

Eligibility: Entry Age: Minimum -19 years and Maximum – 55 years
Sum Insured: Minimum- INR 20000 and Maximum – INR 50 Lakhs

4. Postal Life Insurance- Joint Life Assurance- Yugal Suraksha

A plan which gives a cover for life to you and your spouse as well in terms of receiving the sum insured with accumulated bonus. The Death Benefit is payable to one of the survivors in case of the unfortunate death of a spouse or the primary policyholder. You can get a loan on this plan after 3 years. You can choose to surrender the plan after 3 years. The last bonus which was declared was INR 58/ 1000 sum insured each year.

Eligibility: Entry Age: Minimum -21 years and Maximum – 45 years
Maximum Age of the eldest policyholder must be less than 45 years and the couple must be between 21 years to 45 years
Sum Insured: Minimum- INR 20000 and Maximum – INR 50 Lakhs

5. Postal Life Insurance- Children Policy- Bal Jeevan Bima

An exclusive plan designed for children’s live coverage of the policyholder. However, the number of children is restricted to 2 only. Premium amount is nil on the child plan and upon the death of the insured parent, the entire sum insured with bonus will be paid after the term completes. The last bonus which was declared was INR 58/ 1000 sum insured each year.

Eligibility: Child Age: Minimum -5 years and Maximum – 20 years and insured parent must be
less than 45 years of age
Sum Insured: Maximum– Lesser of INR 3 Lakhs or equivalent to the sum insured of the parent

6. Postal Life Insurance- Anticipated Endowment Assurance- Sumangal

This plan is pure money back plans at a stipulated interval which meets your requirement of meeting various expenses with Survival Benefits paid to the insured occasionally. However, these payments will not be executed in case there is any unfortunate demise of the insured person and the nominee or the legal heir will be paid the entire sum insured with accumulated bonus. Survival Benefits is paid as per below:
15 years Plan- 20% each at the end of 6 years, 9 years and 12 years and 40% with the accumulated bonus upon maturity
20 years Plan- 20% each at the end of 8 years, 12 years & 16 years and 40% with the accumulated bonus upon maturity

Eligibility: Entry Age: Minimum -19 years and Maximum – 40 years for 20 years policy period
And 45 years for 15 years policy period
Sum Insured: Maximum – INR 50 Lakhs

Postal Life Insurance is considered as the only insurance provider in the Life Insurance market in India today which offers the highest bonus, with a low premium. A Postal Life Insurance can avail the below benefits under this same:

1. Change of the nominee name
2. Transfer of the plan to any Financial Institute for availing loan
3. The insured individual is allowed to take a loan by keeping the insurance policy as a guarantee to Heads of the Circle on behalf of the Indian President. However, this is subject to completion of the policy for 3 years in case of Endowment Assurance Plan and 4 years in Whole Life Assurance plan
4. Restoration of the lapsed policy
5. Issuance of Duplicate Bond where the original is lost or damaged

With the Postal Life Insurance plan, one can get the benefits as per his requirement at the least cost and lead a peaceful life.