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Postal Life Insurance to cover more people: Here is what you should know about the schemes

Postal Life Insurance, PLI, oldest life insurer in India, endowment insurance policies, whole life plan, money back plan, children insurance plan, joint life plan, Suraksha, Santosh, Suvidha, Sumangal, Yugal Suraksha, Bal Jeevan Bima It also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces.

Started in February 1884, the Postal Life Insurance (PLI) is the oldest life insurer in India, which covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, autonomous bodies, joint ventures having a minimum of 10 per cent Government/PSU stake, credit co-operative societies etc. It also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces.

There are six endowment insurance policies available in PLI – a whole life policy, a convertible whole life policy, an endowment insurance policy, a money back policy, a joint life policy and a child policy. However, no term insurance or pension plans are available.

Salient Features of PLI policies:

1. Whole Life Assurance – Suraksha

Suraksha is a whole life scheme where the sum assured 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 and maximum age at entry: 19-55 years
  • Sum Assured: Minimum Rs 20,000 and maximum Rs 50 lakh
  • Loan facility is available after 4 years from commencement of the policy
  • The policy may be surrendered after 3 years from commencement of the policy
  • Last declared Bonus: Rs 85 per thousand sum assured per year

2. Endowment Assurance – Santosh

Under this endowment scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-determined maturity at 35, 40, 45, 50, 55, 58 & 60 years of age. In case of death of the policy holder, assignee or nominee or legal heir is paid full amount of sum assured with accrued bonus.

  • Age at entry: Minimum 19 years and maximum 55 years
  • Sum assured: Minimum Rs 20,000 and maximum Rs 50 lakh
  • Loan facility is available after 3 years from commencement of the policy
  • The policy may be surrendered after 3 years from commencement of the policy
  • Last declared Bonus: Rs 58 per thousand sum assured per year

3. Convertible Whole Life Assurance – Suvidha

Suvidha is a whole life assurance policy with the added feature of an option to convert to endowment assurance policy at the end of five years of taking policy.

In case of death before maturity age, assignee or nominee or legal heir paid full amount of sum assured with accrued bonus.

  • Age at entry: Minimum 19 years and maximum 50 years
  • Sum assured: Minimum Rs 20,000 and maximum Rs 50 lakh
  • Loan facility is available after 3 years from commencement of the policy
  • The policy may be surrendered after 3 years from commencement of the policy
  • Last declared Bonus: Rs 85 per thousand sum assured per year (for WLA policy if not converted to Endowment Assurance)

4. Anticipated Endowment Assurance – Sumangal

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

  • Policy term: 15 years and 20 years
  • Age at entry: Minimum 19 years; maximum age at entry 40 years for 20-years term & 45 years for 15-year term policy
  • Survival benefits paid periodically as under: –
  • 15 years Policy – 20 per cent each on completion of 6 years, 9 years & 12 years and 40 per cent with accrued bonus on maturity
  • 20 years Policy – 20 per cent each on completion of 8 years, 12 years & 16 years and 40 per cent with accrued bonus on maturity
  • Last declared bonus: Rs 53 per thousand sum assured per year

5. Joint Life Assurance – Yugal Suraksha

Yugal Suraksha is a joint life endowment assurance in which one of the spouses should be eligible for PLI policies. The plan provides life cover to both spouses to the extent of sum assured with accrued bonus. Death benefits are paid to either of the survivors in the event of death of spouse or main policy holder.

  • Sum assured: Minimum Rs 20,000 and maximum Rs 50 lakh
  • Age at entry of spouses: Minimum 21 years and maximum 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.
  • Loan facility is available after 3 years from commencement of the policy
  • The policy may be surrendered after 3 years from commencement of the policy
  • Last declared Bonus: Rs 58 per thousand sum assured per year

6. Children Policy – Bal Jeevan Bima

Bal Jeevan Bima is a children policy, which provides life insurance cover to children of policy holders.

  • Maximum two children of policy holder (parent) are eligible
  • Children between 5- 20 years of age are eligible
  • Maximum sum assured Rs 3 lakh or equal to the sum assured of the parent, whichever is less
  • Policy holder (parent) should not be over 45 years of age.
  • No premium to be paid on the Children Policy, on the death of policy holder (parent). Full sum assured and bonus accrued shall be paid on completion of term
  • Policy holder (parent) shall be responsible for payment of children policy
  • Last bonus rate: Rs 58 per thousand sum assured per year



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