Postal Life Insurance (PLI) started in 1884 started by the secretary of the state during the British rule. It is the oldest life insurance company in the country and is operation ever since. It was started in 1881 as a welfare scheme to cover Her Majesty’s postal employees by the then Director-General of Post Offices, F.R. Hogg and soon it started covering the employees of the Telegraph Department along with the female employs in the year 1894 the time when no other insurance company covers the females.
Postal life insurance has grown widely ever since and is growing till date. It started by covering policies for a few 100 to lakhs of the policy subscriber. The Postal Life Insurance covers the following employees:
- Central and State Governments (including employees engaged or appointed on extendable contract basis)
- Defense Services and Para Military Forces (including those holding short service or non-permanent commissions)
- Local Bodies
- Autonomous Bodies
- Reserve Bank of India
- Financial Institutions
- Nationalized Banks
- Scheduled Commercial Banks
- Public Sector Undertakings
- Department of Posts
- Government-aided Educational Institutions
- Deemed Universities
- Credit Co-operative Societies and other Co-operative Societies registered with the Government under the Co-operative Societies Act
- Council of Scientific and Industrial Research
- The Medical Council of India, The Dental Council of India, The Nursing Council of India and The Pharmacy Council of India
- Joint Ventures having a minimum of 10% stake of Central/State Governments/PSUs
- Employees engaged/appointed on a contract basis by Governments where the contract is extendable.
- All private educational institutions/schools//colleges etc. affiliated to recognized Boards (recognized by Centre/State Governments) of Secondary/Senior Secondary Education i.e. CBSE, ICSE, State Boards, Open Schools etc.
Postal Life Insurance Statistics
| Year | Policies in Force (Units) | Sum Assured (Rs. Crore) | Fund Corpus (Rs. Crore) |
|---|---|---|---|
| 2007-2008 | 35,50,084 | 31,459.00 | 12,081.71 |
| 2008-2009 | 38,41,539 | 38,403.00 | 14,152.59 |
| 2009-2010 | 42,83,302 | 51,209.91 | 16,656.02 |
| 2010-2011 | 46,86,245 | 64,077.00 | 19,801.91 |
| 2011-2012 | 50,06,060 | 76,591.33 | 23,010.55 |
| 2012-2013 | 52,19,326 | 88,896.96 | 26,131.34 |
| 2013-2014 | 54,06,093 | 1,02,276.05 | 32,716.26 |
| 2014-2015 | 64,61,413 | 1,30,745.00 | 37,571.77 |
Rural Postal Life Insurance Statistics
| Year | Policies in Force (Units) | Sum Assured (Rs. Crore) | Fund Corpus (Rs. Crore) |
|---|---|---|---|
| 2007-2008 | 61,67,928 | 41,846.09 | 3003.78 |
| 2008-2009 | 73,56,446 | 53,072.10 | 3994.36 |
| 2009-2010 | 99,25,103 | 59,572.59 | 5,524.69 |
| 2010-2011 | 1,22,03,345 | 66,132.23 | 6,607.79 |
| 2011-2012 | 1,35,47,355 | 69,754.17 | 9,141.43 |
| 2012-2013 | 1,46,64,650 | 75,154.06 | 11,388.20 |
| 2013-2014 | 1,50,14,314 | 79,466.46 | 13,352.01 |
| 2014-2015 | 2,35,14,055 | 1,05,204.79 | 14,968.67 |
Eligibility for PLI
Postal Life Insurance
- Eligible Persons
All employees of:
- Central / State Governments (including people engaged/appointed on contract basis)
- Defense Services and Para Military Forces
- Local Bodies
- Autonomous Bodies
- Reserve Bank of India
- Financial Institutions
- Nationalized Banks
- Scheduled Commercial Banks
- Public Sector Undertakings
- Department of Posts
- Government-aided Educational Institutions
- Deemed Universities
- Age Limit:
- 19-55 years for all plans except the Child Plan
- Maximum age of insured under Children Policy (Bal Jeevan Bima) is 45 years
- The child’s age should be between 5 and 20 years
- Sum Assured:
Minimum- Rs.20,000
Maximum- Rs.50 lakh
- Premium Payment Frequency- Monthly
Rural Postal Life Insurance
- Eligible Persons-People living outside the municipal boundaries of any city or town
- Age Limit:
- 19-55 years for all plans, except three mentioned below
- 19-45 years for Anticipated Endowment Assurance (Grama Sumangal) and 10 Year Rural Postal Life Insurance Plan (Gram Priya)
- Maximum age of insured under Children Policy (Bal Jeevan Bima) is 45 years; the child’s age should be between 5 and 20 years
- Sum Assured:
Minimum- Rs.10,000
Maximum- Rs. 10 lakh
- Premium Payment Frequency- Monthly
Postal Life Insurance Policy
There are six different policies under PLI they are as follows-
- Whole Life Assurance (Suraksha)
- Convertible Whole Life Assurance (Suvidha)
- Endowment Assurance (Santosh)
- Anticipated Endowment Assurance (Sumangal)
- Joint Life Assurance (Yugal Suraksha)
- Children Policy (Bal Jeevan Bima)
Postal Life Insurance Plan – Whole Life Assurance Policy (Suraksha)
- The Postal Life Insurance plan covers till the age of 80 years
- Offers an assured amount and an accrued bonus to the policyholder after he or she attains the age of 80 years
- The assured amount and bonus are paid to the nominees, legal heirs or assignees in case the unexpected death
- Anyone who is a government employee can apply for the policy provided they are over 19 years of age but below 55 years.
- A cover can start from as low as Rs. 20,000 and can go up to Rs. 50 lakh
- Postal Life Insurance policyholders with a cover more than Rs.1 lakh need to pass a medical examination prior to the policy period starts.
- Policyholders can apply for a loan after completion of 4 years of the plan if the plan has a surrender value of at least Rs. 1,000
- The Postal Life Insurance plan has a lock-in period of 3 years and can be surrendered after that.
- A Postal Life Insurance Suraksha policy can be converted into an Endowment Assurance Policy after one year
- Insured persons have the option to make the policy a paid-up plan if the cover is more than 3 years old
Postal Life Insurance Plan – Convertible Whole Life Assurance Policy (Suvidha)
- The Postal Life Insurance plan is convertible into an Endowment Assurance plan after five of taking the policy provided that the age is 55 years at the time of conversion
- Under the Postal Life Insurance, the insured receives the guaranteed sum assured and accrued bonuses on maturity if the conversion option is exercised.
- If the conversion option is not opted for, then the insured receives the guaranteed sum and bonuses on reaching the age of 80 years
- In case of a death of the policyholder the nominees receive the sum assured and any accrued bonuses
- Anyone who is a government employee can apply for the policy provided they are over 19 years of age but below 55 years.
- The Postal Life Insurance policy offers a cover from Rs. 20,000 to Rs. 50 lakh
- Postal Life Insurance policyholders with a cover more than Rs.1 lakh need to pass a medical examination prior to the policy period starts.
- Loan facility is available against the Postal Life Insurance policy after a period of 4 years.
- The Postal Life Insurance Suvidha plan has a lock-in period of 3 years after which the insured can opt to surrender the policy
- Insured individuals are not eligible for bonuses if they surrender or assign the plan before 5 years
Postal Life Insurance Plan – Endowment Assurance Policy (Santosh)
- Endowment plan provides a guaranteed sum assured and accrued bonuses on maturity
- Postal Life Insurance policyholders have an option to convert the plan into any other endowment plan
- In the event of the death of the insured, the sum assured and accrued bonuses are paid to the nominees, legal heirs or assignees
- Anyone who is a government employee can apply for the policy provided they are over 19 years of age but below 55 years.
- A Santosh endowment policy offers a cover of Rs. 20,000 and Rs. 50 lakh
- Medical checks are mandatory if the sum assured is more than Rs.1 lakh.
- Loan facility is available after a period of 3 years from Postal Life Insurance
- The Postal Life Insurance endowment policy has a lock-in period of 3 years after that the policy can be surrendered.
- A Postal Life Insurance policy which is surrendered or assigned before 5 years is not eligible for bonuses. Plans are eligible for a proportionality reduced bonus amount if the policy is surrendered or assigned for a loan
- Give the insured the option to make the policy a paid-up plan provided it is more than 3 years old
- Insured can choose to turn the policy into a paid-up plan if the policy is not less than 3 years old
Postal Life Insurance Plan – Anticipated Endowment Assurance Policy (Sumangal)
- Postal Life Insurance offers two money back plan options under the larger Sumangal policy umbrella:
- 15 Years Money Back Plan:
| 20% of the sum assured | 6 years |
| 20% of the sum assured | 9 years |
| 20% of the sum assured | 12 years |
| 40% of the sum assured | 15 years |
- 20 Years Money Back Plan:
| 20% of the sum assured | 8 years |
| 20% of the sum assured | 12 years |
| 20% of the sum assured | 16 years |
| 40% of the sum assured | 20 years |
- These payments do not reduce the policy sum assured and the nominees, legal heirs or assignees receive the full sum assured and the accrued bonuses in case of death
- A Postal Life Insurance Sumangal policy is ideal for people looking for regular payments from their investments
- The sum assured starts from Rs. 20,000 and goes up to Rs. 50 lakh
- Applicants to the Postal Life Insurance policy must be between the ages of 19 and 40 years or 45 years for 20 years and 15 years’ policy respectively.
- Policyholders cannot take a loan against the policy
Postal Life Insurance Plan – Joint Life Assurance Plan (Yugal Suraksha)
- Yugal Suraksha is for couples and can be applied for the policy along with their spouse who may or may not be eligible on their own
- The plan offers a guaranteed sum assured and accrued bonuses on maturity
- Policyholders can choose to convert the plan into any other endowment plan
- The age of the spouses at entry should be between 21 years and 45 years, and the age of the policyholder should be less than 45 years.
- The plan offers a cover ranging from Rs. 20,000 to Rs. 50 lakh
- Medical checks are mandatory if the sum assured is more than Rs. 1 lakh
- Loan facility is available after a period of 3 years from Postal Life Insurance
- The endowment policy has a lock-in period of 3 years
- A policy which is surrendered or assigned before 5 years is not eligible for bonuses.
- The insured couple can opt to turn the policy into a paid-up plan provided the policy is not less than 3 years old.
- The Death Benefit is paid to either of the surviving individuals in the unforeseen event of the death of the spouse or to the main insured.
Postal Life Insurance Plan – Children Policy (Bal Jeevan Bima)
- A Bal Jeevan Bima cover provides insurance to a maximum of two children in the family and is taken in the name of the parent.
- The children must be between the ages of 5 and 20 years and the parent must be less than 45 years.
- The sum assured is limited to the maximum of Rs. 3 lakh
- Maturity benefits include the sum assured and any accrued bonuses.
- The bonus rates will be the same as those declared for endowment policies.
- No premium is required to be paid in the event of the death of the insured.
- In the event of the death of the policyholder, the sum assured and accrued bonuses are payable to the children after the term of the plan. In case of death of a child, the sum assured and accrued bonuses become payable immediately.
- Loan facility is not available under the plan.
- The insured can opt to make the policy a paid-up plan provided the premium has been paid continuously for 5 years.
Rural Postal Life Insurance Policy
RPLI is an insurance policy for the rural part of the country. This policy was started in 1993 on the suggestion of the Malhotra Committee. This policy provides life insurance for the economically weaker rural population including women workers. There were more than 23.51 million Rural Postal Life Insurance policies as of March 31, 2015.
There are six plans under Rural Postal Life Insurance
- Whole Life Assurance (Grama Suraksha)
- Convertible Whole Life Assurance (Grama Suvidha)
- Endowment Assurance (Grama Santosh)
- Anticipated Endowment Assurance (Grama Sumangal)
- 10 Year RPLI (Gram Priya)
- Children Policy (Bal Jeevan Bima)
Rural Postal Life Insurance Plan – Whole Life Assurance (Gram Suraksha)
- The Rural Postal Life Insurance plan provides cover till the insured reaches the age of 80 years.
- Offers an assured amount and accrued bonus to the policyholder after s/he attains the age of 80 years.
- The assured amount and bonus paid to the nominees, legal heirs or assignees in case the unexpected happens and the policyholder expire during the tenure of the policy.
- Anyone who is an employee of the specified government offices, armed forces, institutions, and organizations, can apply for the policy provided they are over 19 years of age but below 55 years of age.
- A cover can start from as low as Rs 10,000 and can go up to Rs 10 lakh
- A policyholder can apply for a loan after the completion of 4 years of the plan.
- The plan has a lock-in period of 3 years after which it can be surrendered at any time the policyholder wishes.
- The last declared bonus under this plan was at the rate of Rs 65 per Rs 1000 sum assured for each year of the policy term.
Rural Postal Life Insurance Plan – Endowment Assurance (Gram Santosh)
- The Postal Life Insurance plan covers till the age of 80 years
- Offers an assured amount and an accrued bonus to the policyholder after he or she attains the age of 80 years
- The assured amount and bonus are paid to the nominees, legal heirs or assignees in case the unexpected death
- Anyone who is a government employee can apply for the policy provided they are over 19 years of age but below 55 years.
- A cover can start from as low as Rs. 10,000 and can go up to Rs. 10 lakh
- Policyholders can apply for a loan after completion of 3 years
- The Postal Life Insurance plan has a lock-in period of 3 years and can be surrendered after that.
- A Postal Life Insurance Gram Santosh policy can be converted into an Endowment Assurance Policy after one year
- Insured persons have the option to make the policy a paid-up plan if the cover is more than 3 years old
Rural Postal Life Insurance Plan – Convertible Whole Life Assurance (Gram Suvidha)
- The Postal Life Insurance plan is convertible into an Endowment Assurance plan after five of taking the policy provided that the age is 55 years at the time of conversion
- Under the Postal Life Insurance, the insured receives the guaranteed sum assured and accrued bonuses on maturity if the conversion option is exercised.
- If the conversion option is not opted for, then the insured receives the guaranteed sum and bonuses on reaching the age of 80 years
- In case of a death of the policyholder, the nominees receive the sum assured and any accrued bonuses
- Anyone who is a government employee can apply for the policy provided they are over 19 years of age but below 55 years.
- The Postal Life Insurance policy offers a cover from Rs. 10,000 to Rs. 10 lakh
- Loan facility is available against the Postal Life Insurance policy after a period of 4 years.
- The Postal Life Insurance Gram Suvidha plan has a lock-in period of 3 years after which the insured can opt to surrender the policy
- Insured individuals are not eligible for bonuses if they surrender or assign the plan before 5 years
Rural Postal Life Insurance Plan – Anticipated Endowment Assurance (Gram Sumangal)
- Postal Life Insurance offers two money back plan options under the larger Sumangal policy umbrella:
- 15 Years Money Back Plan:
| 20% of the sum assured | 6 years |
| 20% of the sum assured | 9 years |
| 20% of the sum assured | 12 years |
| 40% of the sum assured | 15 years |
- 20 Years Money Back Plan:
| 20% of the sum assured | 8 years |
| 20% of the sum assured | 12 years |
| 20% of the sum assured | 16 years |
| 40% of the sum assured | 20 years |
- These payments do not reduce the policy sum assured and the nominees, legal heirs or assignees receive the full sum assured and the accrued bonuses in case of death
- A Postal Life Insurance Sumangal policy is ideal for people looking for regular payments from their investments
- Applicants to the Postal Life Insurance policy must be between the ages of 19 and 40 years or 45 years for 20 years and 15 years’ policy respectively.
- Policyholders cannot take a loan against the policy
Rural Postal Life Insurance Plan – 10 Years Rural Postal Life Insurance (Gram Priya)
- Rural Postal Life Insurance’s Gram Priya policy is a short-term money back plan for the people living in the rural part of the country.
- The policy offers a life insurance with a sum assured for 10 years.
- The survival benefits under the Gram Priya policy
| 20% of the sum assured | 4 years |
| 20% of the sum assured | 7 years |
| 60% of the sum assured | 10years |
- The policy offers life insurance cover for those within are in the age of 20 years to 45 years
- The policyholder can opt for a sum assured between Rs 10,000 to Rs 10 lakh.
Rural Postal Life Insurance Plan – Children Policy (Bal Jeevan Bima)
- A Bal Jeevan cover provides insurance to a maximum of two children in the family and the policy is taken in the name of the parent.
- The children must be between the ages of 5 and 20 years and the parent must be less than 45 years old.
- The sum assured is limited to a maximum of Rs 1 Lakh or equal to the sum assured of the parent, whichever is less.
- In case of death, no premium is needed to be paid
- In the event of the death of the policyholder, the sum assured and the accrued bonuses are payable to the children after the term of the policy. In case of death of a child, the sum assured and the accrued bonuses become payable immediately.
- Maturity benefits include the sum assured and any accrued bonuses.
- There is no loan facility under this plan.
How to buy PLI and RPLI policies?
This policy is only available offline and you can buy from the following individual
- Post office employees like the inspector staff, clerical staff, postmen etc.
- Field Officers of Postal Life Insurance
- Gramin Dak Sevaks of Rural Post Offices or Gramin Dakghar
- Direct Agents.
PLI Customer Care Number
For any query related to the Postal Life Insurance, there is a Toll-Free Customer Care Number – 1800 180 5232/155 232
Benefits of PLI and RPLI
Postal Life Insurance and Rural Postal Life Insurance offers a variety of benefit to their subscribers some of them are listed below-
- Postal Life Insurance and Rural Postal Life Insurance provides their subscribers with the lowest premium and the highest cover for such premium
- This insurance covers some of the highest bonus rates
- Insured individuals can take a loan against the insurance plan and the loan can be taken 3 years after buying an Endowment Assurance plan and 4 years in case of Whole Life Assurance cover
- Postal Life Insurance policyholders can also assign their policy and also they can assign the policy to any financial institution for taking a loan
- Insured individuals under PLI can convert their Whole Life Assurance plans to Endowment Assurance covers. They can also convert their Endowment Assurance plans to other Endowment Assurance policies
- Policyholders can change their nominees at any time
- Postal Life Insurance allows the insured to revise his or her lapsed policy at any time. The policy lapses if 6 premiums have not been paid for plans that are less than 3 years old, or 12 premiums have not been paid for covers more than 3 years old
- The Postal Life Insurance plans offer tax benefits under section 80C of the Income Tax Act
- Policyholders can take more than one policy offered by Postal Life Insurance provided the total sum assured for each class of policies is not less than Rs. 20,000 and not more than Rs. 10 lakh
FAQ Related to the PLI and RPLI
What is PLI?
A contract entered into by the Government to pay a given sum of money on the death of an individual to his nominee or himself, if he survives that period.
What is the difference between PLI and other Insurance?
PLI is only for Government and Semi-Government employees moreover, PLI is the only Insurer that offers low premium and high bonuses.
Is PLI provided Guaranteed?
Yes, PLI is guaranteed by the Government of India.
Is there any limit to the number of policies one can take for children?
One can take only policies for two children.
How can a policy be transferred from one PO to other?
The system of transfer of PLI policy is very simple. The policyholder can apply to the Chief Post Master General through the Post Office where the policy stands or the PO in which he desires to pay the premium. The PO will accept the application and send to the CPMG (PLI).
Whether salaried professionals in the Private Sector can join PLI?
Such categories are not eligible, but they could have RPLI policies.
If one spouse is working in a Government Organization but the other is not, is there any scheme in PLI for both?
We have ‘Yugal Suraksha’ scheme under which both can jointly get a policy, after paying a little more premium, both can be covered under this assurance scheme.
Can one continue the policy if one quits the Government service?
One can continue by making payment at any one of the post offices throughout the country, even after quitting service.
What is the mode of premium deposit?
The Premium Receipt Book is issued to the Insurants for the deposit of Premium in any departmental PO, and there is a facility of recovery from pay for all employees belonging to the Central Government.
Is there any other mode of payment?
The premium can be paid through Cheque
Is premium recovered through salary?
Yes, recovery of the premia through salary is possible, in offices where it is remitted directly to PLI
Why are the premia for children’s policy higher?
As both children’s and parents’ risk is covered.
Can one revive a lapsed policy?
If the premia are not paid for 6 months in case of policy within 3 years, (or) 12 months in case of policy is more than 3 years, then the policy becomes void. This needs a revival to make it active. Revival shall not be allowed on more than two occasions during the entire team of the policy. Policy can be revived any time one year before maturity.
What happens if one forgets to pay one’s premium in a month?
One can pay the premium in the subsequent month, by paying a minimum fine of Re. 1/- per hundred of sum assured.
Is loan facility available in PLI?
The loan can be taken from EA policy after completion of 3 years and in respect of Whole Life after completion of 4 years. Loan facility is available in AEA policies.
What is the surrender value of a policy?
A.” Surrender value” of a policy, means the amount that is payable to an assured when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment.
What will be the surrender value of the policy?
Surrender value depends on the surrender factor and the type and term of the policy.
Can one get the full amount paid with accrued bonus, if the policy is surrendered prematurely?
Endowment Assurance policy can be surrendered after 36 months.
WLA policy can be surrendered after 48 months.
Children policy can be surrendered after 60 months.
No surrender for AEA policy.
