Are you a government employee? What do you say, ‘’Yes’’?
But, do you have Life Insurance? No?
Well, then, in this post we are going to tell you about the best life insurance scheme for government employees. The name of the scheme is PLI or Postal Life Insurance. If you have already life insurance or you are intending to get a new life cover, you must read this article so that you know what you are missing by not taking advantage of PLI scheme.
What is Postal Life Insurance?
Postal Life Insurance (PLI) was launched on 1st February 1884. Initially, it was started as a welfare scheme for the benefit of postal workers. However, in 1888 the employees of the telegraph department were also given the opportunity to avail this facility. In 1894, the postal life insurance facility was also opened for the female employees of the previous P&T department. Postal life insurance is the oldest life insurance provider in this country.
Over the years, postal life insurance has expanded its reach – increasing significantly from hundreds of policies in 1884 to more than 4.6 million policies as of 31.03.2017. It now provides life insurance to 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 with at least 10% Government / PSU Partnership. Postal life insurance services are also provided to officers and staff of military and paramilitary forces.
Postal Department Life Insurance Schemes
Whole Life Assurance
In this scheme, the assured amount 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 the death of the insured, whichever occurs earlier, provided the policy is in force on the date of claim.
- Minimum & Maximum age at entry: 19-55 years
- Minimum Sum Assured ₹ 20,000; Maximum ₹ 50 lac
- Loan facility after 4 years
- Surrender after 3 years
- Not eligible for the bonus if surrendered before 5 years
- Can be converted into Endowment Assurance Policy up to 59 years of age of the insurant provided the date of conversion does not fall within one year of the date of cessation of premium payment or date of maturity.
- Premium paying age can be opted for as 55,58 or 60 years
- A proportionate bonus on the reduced sum assured is paid if the policy is surrendered
- Last declared Bonus- ₹ 76/- per ₹ 1000 sum assured per year
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Convertible Whole Life Assurance (Suvidha)
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 the policy.
- Assurance to the extent of sum assured with accrued bonus till attainment of maturity age
- In case of death, assignee, nominee, or legal heir paid the full amount of sum assured with accrued bonus
- Minimum age & Maximum age at entry: 19-50 years
- Can be converted into Endowment Assurance after 5 years not later than 6 years of taking the policy. If not converted, the policy will be treated as Whole Life Assurance
- Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
- Loan facility after 4 years
- Surrender after 3 years
- Not eligible for the bonus if surrendered before the completion of 5 years
- Last declared Bonus- ₹ 76/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
- On conversion, the bonus of Endowment Assurance will be payable.
Endowment Assurance (Santosh)
Under this scheme, the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-determined age of maturity i.e 35,40,45,50,55,58 & 60 years of age.
- In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured with accrued bonus
- Minimum & maximum age at entry: 19-55 years
- Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
- Loan facility after 3 years
- Surrender after 3 years
- Not eligible for the bonus if surrendered before the completion of 5 years
- A proportionate bonus on the reduced sum assured is paid if the policy is surrendered after 5 years
- Last declared Bonus- ₹ 52/- per ₹ 1000 sum assured per year
Joint Life Assurance (Yugal Suraksha)
It is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI policies.
- Life cover to both spouses to the extent of sum assured with accrued bonus with a single premium
- Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
- Minimum age & Maximum age at entry of spouses: 21-45 years
- The maximum age of the elder policyholder should not be more than 45 years & the couple should be between 21 years to 45 years
- Minimum term of policy 5 years and maximum 20 years
- Loan facility after 3 years
- Surrender after 3 years
- Not eligible for the bonus if surrendered before the completion of 5 years
- A proportionate bonus on the reduced sum assured is paid if the policy is surrendered
- Death benefits are paid to either of the survivors in the event of the death of a spouse or main policyholder
- Last declared Bonus- ₹ 52/- per ₹ 1000 sum assured per year
Anticipated Endowment Assurance (Sumangal)
It is a Money Back Policy with a maximum sum assured of ₹ 50 lacs, best suited to those who need periodical returns. Survival benefits are paid to the insurant periodically. Such payments will not be taken into consideration in the event of the unexpected death of the insurant. In such cases, the full sum assured with accrued bonus is payable to the assignee, nominee, or legal heir.
- Policy term: 15 years and 20 years
- Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45 years for 15 years’ term policy
- Survival benefits paid periodically as under: –
- 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with accrued bonus on maturity
- 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with accrued bonus on maturity
- Last declared Bonus- ₹ 48/- per ₹ 1000 sum assured per year
Postal Life Insurance Premium Calculator | Postal Life Insurance Calculator
- Postal life insurance premium depends on three things –
- How much money are you insuring?
- The current age of the person insuring, and
- Term of insurance
For example, if your age is 25 and you assure a sum of 5,00,000 and want to get your money matured when you will 40 years, you will have to pay a monthly premium of Rs. 3422. On the other hand, if your age is 25 and you assure a sum of 5,00,000 and want to get your money matured when you will 45 years, you will have to pay a monthly premium of Rs. 2586. For, more details about PLI premium, you can download the Post info application from the Google Playstore.
Postal Life Insurance: How to apply?
You need to go to the post office to get postal life insurance. Visit your nearest Post Office and tell any postal agent that you want to have a PLI. He will support you in every possible way.
Postal Life Insurance: Form
The premium of Postal life insurance can be deposited in two ways – Online and Offline.
- To submit premium online go to this website https://pli.indiapost.gov.in/CustomerPortal/PSLogin.action and submit premium by logging in with customer ID and password.
- If you want to deposit premium offline, you can go to the post office and deposit the premium yourself or you can also deposit the premium through a postal agent.
Conclusion
There are various types of Life Insurance policies available in the market. However, for a government employee, PLI is probably the best option for Life Insurance.
I hope you have found something useful in this article. If you have any questions about this article, please let us know in the comments or mail us at [email protected]. Also, share this article with others to give them an opportunity to learn new things. In this blog, we publish various articles on finance. To get immediate notification of our articles, click on the red bell icon on the right side and turn on the notification. Thank you for spending your precious time reading this article. stay healthy, Stay safe.
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