Postal Life Insurance (PLI)

Postal Life Insurance (PLI) is the oldest insurance company in India which was formed on 1st February, 1884 under British India. The insurance company was initially set for the welfare of postal employees.

It is the first insurance company to cover female employees of P & T Department in 1894.

The company has grown substantially from a few hundred policies in 1884 to 6.4 million policies as on 31.03.2015. The company enjoys a vast network spread across the country with around 1,55,669 branches making it India’s largest and also the most trusted retail and financial services provider. It was established with the objective of serving as a welfare scheme for its employees, later extending the same benefits to the employees of the Telegraph Department in the year 1888. It holds the prestigious accreditation of becoming the first life insurance company to provide a cover for females by offering coverage to female employees in 1894.

Interesting facts about Postal Life Insurance

The company was formed under British era on approval from Her Majesty, the Queen of England
After 4 years of formation the welfare scheme was extended to Telegraph department in 1888
PLI also covers officers and staff of the Defence services and Para-Military forces.
Postal Life Insurance manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Postal department services
As per 31st March 2017 records, Postal Life Insurance has sold more than 46 lakh policies.

Benefits of Postal Life Insurance

PLI is the only insurer which gives highest return (bonus) and charges lowest premium for any product in Indian Life Insurance market
You can avail loan facility for immediate liquidity requirements on PLI policies
Flexibility in terms of converting any whole life insurance to endowment insurance and endowment assurance to any other endowment assurance, as per the terms and conditions
In case original policy bond certificate is lost or destroyed, the company has the facility to issue duplicate bond certificate.

Life Insurance Plans Offered by Postal Life Insurance

Whole Life

The plan covers the policyholder till the maximum maturity age of 80 years.
If the policyholder survives the term, the policyholder will be eligible for the pre-determined sum assured amount and accrued bonus.
Sum assured ranges from a minimum of Rs. 20,000 to a maximum of Rs. 50 lakhs.
On the death of the policyholder before the age of 80 years, the nominee or legal heir is eligible for receiving the sum assured and accrued bonus.
The minimum entry age is 19 years and maximum entry age is 55 years.
Policy can be converted into an endowment plan after one year of the policy term and before the policyholder turns 59 years of age.
Loan facility is available on this policy after 4 policy years.
The policy can be surrendered only after the completion of 3 policy years.
Last declared Bonus- ₹ 85/- per ₹ 1000 sum assured per year

Convertible Whole Life

This is a Whole Life Assurance Policy that offers the flexibility to be converted into an Endowment Assurance Policy after the completion of 5 policy years.
Offers sum assured with accrued bonus till the attainment of maturity age.
In case of the policyholder’s demise, the assignee or nominee or legal heir is eligible for the pre-determined sum assured with accrued bonus.
Entry age starts from a minimum of 19 years to a maximum of 50 years.
Sum assured varies between a minimum of Rs. 20,000 and a maximum of Rs. 50 lakhs.
Loan facility can be availed after the completion of 4 policy years.
The policy can be surrendered after 3 policy years.
Last declared Bonus is Rs. 85 for every Rs. 1,000 per year (for Whole Life Assurance policy, if not converted to Endowment Assurance).

Anticipated Endowment

This Money Back Policy offers a maximum sum assured of Rs. 50 lakhs. It is best suited to meet the unique objectives of individuals looking forward to receiving periodical returns. Survival benefits are payable to the insurant at periodic intervals. Such payments are not considered in case of an unforeseen death of the insurant. In such cases, full sum assured, along with accrued bonus, is payable to the assignee, nominee of legal heir.
Policy term varies between 15 years and 20 years.
Minimum entry age starts from 19 years to a maximum of 40 years for a 20 years’ term policy, and up to a maximum of 45 years for a 15 years’ term policy.
Survival benefits payable periodically are:
- 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 is Rs. 53 for every Rs. 1,000 sum assured per year.

Joint Life

It is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI policies.
Life cover, offered to both spouses, comprise of to the pre-determined sum assured, along with the accrued bonus.
Sum assured varies between a minimum of Rs. 20,000 and a maximum of Rs. 50 lakhs.
Entry age of spouses ranges between 21 years and 45 years.
Maximum age of the comparatively elder policyholder should not exceed 45 years, and the couple should be between 21 years and 45 years.
Loan facility can be availed after the completion of 3 policy years.
Death benefits are paid to either of the survivors in case of the death of the spouse, or the main policyholder.
Last declared Bonus is Rs. 58 for every Rs. 1,000 sum assured per year.

Children Policy

The scheme provides life insurance cover to children of policyholders.
A maximum of two children of a policyholder (parent) are eligible for being covered by this policy.
Children between 5 years and 20 years of age are covered by this policy.
Maximum sum assured offered is Rs. 3 lakhs or equal to the sum assured of the parent, whichever is lesser.
Policyholder (parent) should not be over 45 years of age.
No premium needs to be paid on this policy, on the death of policyholder (parent). Full sum assured and bonus accrued is payable on the completion of the policy term.
Policyholder (parent) is responsible for making payments towards this policy.
Applicable rate of bonus for Endowment policy (Santosh) i.e. last bonus rate is Rs. 58 for every Rs. 1,000 sum assured per year.

Postal Life Insurance Statistics

YEAR	NO. OF POLICIES PROCURED DURING THE FINANCIAL YEAR	SUM ASSURED OF THESE POLICIES (IN RS. CRORE)	NO. OF ACTIVE POLICIES AT THE END OF THE FINANCIAL YEAR	AGGREGATE SUM ASSURED (IN RS. CRORE)	PREMIUM INCOME (IN RS. CRORE)	FUND BALANCE (IN RS. CRORE)
2016-17	213323	11096.67	4680013	113084.8	7233.89	55,058.61
2015-16	198606	9644.97	4930838	109982.1	6657.03	46,302.72
2014-15	324022	14276.91	5242257	109106.9	5963.46	39,536.33
2013-14	433182	16129.39	5406093	102276.1	5352.01	32,716.26
2012-13	454053	14695.59	5219326	88896.46	4557.29	26,131.34
2011-12	482423	13288.15	5006060	76591.33	3681.03	23,010.55

Postal Life Insurance Eligibility Criteria

Plan Name	Minimum	Maximum
Whole Life Assurance (Suraksha)	19	55
Endowment Assurance (Santosh)	19	55
Convertible Whole Life Assurance (Suvidha)	19	50
Anticipated Endowment Assurance (Sumangal)	19	40/45
Joint Life Assurance (Yugal Suraksha)	21	45
Children Policy (Bal Jeevan Bima)	5	20

Employees of the following organizations are eligible, as per 5th October 2018 records:

Central Government
Defence Services
Para Military forces
State Government
Local Bodies
Government-aided Educational Institutions
Reserve Bank of India
Public Sector Undertakings
Financial Institutions
Nationalized Banks
Autonomous Bodies
Extra Departmental Agents in Department of Posts
Employees Engaged/ Appointed on Contract basis by central/ State Government where the contract is extendable
Employees of all scheduled Commercial Banks
Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
Employees of deemed Universities i.e. an educational institutes accredited by recognized bodies such a National Assessment and Accreditation council, All India Council of Technical Education, Medical council of India etc.
Employees (teaching/non-teaching staff) of all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Government) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open School, etc.
Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt./Private Hospitals etc.), Engineers (including Engineers pursuing Master’s/Post Graduate degree after having passed GATE entrance test), Management Consultants, Charted Accountants registered with Institute of Charted Accountants of India, Architects, Lawyers registered with Bar Council of India/States, Bankers working in Nationalised Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks etc.
Employees of listed companies of NSE (National Stock Exchange) and Bombay Stock Exchange (BSE) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, and Infrastructure Sector etc., where employees are covered for Provident Fund/Gratuity and/or their leave records are maintained by the establishment.

What is Rural postal life insurance

Rural Postal Life Insurance (RPLI) scheme was started in the year 1995 for the benefit of a section of the population living in rural India. The main aim of the rural postal life insurance is to extend insurance coverage to the low-income groups and provide them financial security so that they can tackle adversities. The scheme was as a result of the recommendation of the Malhotra committee which passed on its recommendation to introduce reforms in the insurance sector for people living in rural areas.

Features of Rural Postal Life Insurance

RPLI offers affordable insurance solutions, especially to weaker or low-income groups of the society.

RPLI has successfully penetrated in the areas which are not very well connected to the developed parts of the country.
RPLI offers a wide variety of plans (6 types of policies) to cater to the different needs of the people in rural areas.
The issue of duplicate policy or bond if the original copy of the policy/scheme goes missing.

Benefits of Rural Postal Life Insurance

There are several benefits which are linked with the rural postal insurance schemes. A wide variety of different schemes are available under the scope of rural insurance. Some of the most useful advantages of these schemes are mentioned below-

The policyholders in rural postal insurance schemes can avail loan facility by pledging their policies as collateral for security. The loan facility can be availed only after the policy has completed 3 years or more in case of endowment plan and 4 years in case of whole life assurance.
The policyholder can also use the policy for taking a loan with any financial institution, provided it has gained surrender value.
The policyholder of RPLI can revive the policy if the policy has lapsed due to default in insurance premium payment.
The policyholders of the RPLI have the flexibility to convert the rural postal insurance policy from one scheme to another if they are not satisfied with the benefits or features of the scheme. This can be done in accordance with the rules set by the postal insurance department.
The policyholder of the RPLI has the flexibility to change the nomination on the policy document in the active term of the policy. The change of the nomination can be done by placing a request with the postal insurance department.

Rural Postal Life Insurance Statistics

YEAR	NO. OF POLICIES PROCURED DURING THE FINANCIAL YEAR	SUM ASSURED OF THESE POLICIES (IN RS. CRORE)	NO. OF ACTIVE POLICIES AT THE END OF THE FINANCIAL YEAR	AGGREGATE SUM ASSURED (IN RS. CRORE)	PREMIUM INCOME (IN RS. CRORE)	FUND BALANCE (IN RS. CRORE)
2016-17	375134	6850.45	14684096	83983.47	2120.02	20716.62
2015-16	258225	2668.9	14915652	81733.73	2012.17	18,113.78
2014-15	477360	4652.35	15245387	82822.26	1983.95	15,771.55
2013-14	871462	6712.39	15014314	79466.45	1960.24	13,352.01
2012-13	1634767	7413.17	14664650	75154.06	1703.16	11,388.20
2011-12	2714856	9088.99	13547355	69754.17	1558.93	9,141.43

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Reliance General Insurer

Amount Covered: ₹ 1 Lakh

Deal Price: ₹ 2,094 / Year

Waiting period: 4 yrs

Disclaimer: Above mentioned premium is for a 25 years old Male. Premiums payable on a monthly basis.

Eligibility Criteria for Rural Postal Life Insurance (RPLI)

Plan Name	Minimum	Maximum
Whole Life Assurance (Gram Suraksha)	19	55
Endowment Assurance (Gram Santosh)	19	55
Convertible Whole Life Assurance (Gram Suvidha)	19	50
Anticipated Endowment Assurance (Gram Sumangal)	19	40/45
10 Years Rural PLI (Gram Priya)	20	45
Children Policy (Bal Jeevan Bima)	5	20

• The scheme shall cover all persons, male or female, who permanently reside in rural areas and are ordinarily residents in India to the exclusion of foreigners and non-resident Indians, provided they have attained majority.

Policy Details - Bonus Rates for PLI & RPLI

Year	PLI			RPLI
	Bonus per Rs. 1,000 annually			Bonus per Rs. 1,000 annually
	EA	WLA	AEA	EA	WLA	AEA
31st March 2016	58	85	53	50	65	47
31st March 2015	58	85	53	50	65	47
31st March 2014	58	85	53	50	65	47
31st March 2013	58	85	53	50	65	47
31st March 2012	58	85	53	50	65	47
31st March 2011	60	85	55	50	65	47
31st March 2010	60	85	55	50	65	47

Postal Life Insurance Claim Settlement Details

The insured can register a claim with the concerned Customer Processing Centre (CPC) by visiting it along with essential documents like original policy document, loan repayment record (if any) and receipt book for premium payments. These documents will be thoroughly examined for verifying their authenticity, and a decision regarding their approval or rejection will be taken accordingly. If the claim is approved, the payment will be made through the Post Office.

Additional benefits include:

Revival of lapsed policy
Issuance of duplicate policy document
Alternation of nominee
Conversion of Whole Life Assurance to Endowment Assurance, and of Endowment Assurance to any other Endowment Assurance
Assigning policy to any financial institute for loan

Review of Postal Life Insurance Company

Postal Life Insurance has been in existence from the 18th century. The plans are exclusive to public sector employees. The offerings from the company are simple to understand and offer the best returns in the market. The company has a wide network throughout the country and is amongst the most trusted Life Insurance companies in India.

Postal Life Insurance Contact Details

The Headquarter of Postal Life Insurance

Directorate of Postal Life Insurance

Chanakyapuri P.O. Complex, 1st Floor,

New Delhi – 110 021.

Toll Free Number: 18001805232

Ph: 011-24673177

FAX: 011-24100358, 26876809

Email ID: pli.dte@gmail.com

FAQ of Postal Life Insurance

How to check your Postal Life Insurance Status Online?

If you have subscribed to a Postal Life Insurance Policy, simply visit the official website of India Post and create an online account. Once you have successfully registered with a User ID and Password, you can login and check the status of your Postal Life Insurance Plan through the portal.

Is PLI better than LIC?

Every life insurance plan from both these companies are designed to cater to unique needs of individuals. You can compare between all the plans and take a conscious decision on the one that meets your objectives.

Is Postal Life Insurance covered under 80C?

Yes, premiums paid towards PLI are tax exempted as per Section 80C of the Income Tax Act, 1961.

Does PLI offer online payment facility?

Yes, you can make your premium payments towards PLI online through the official website of India Post.

Is Postal Life Insurance maturity amount taxable?

No, the maturity amount will be taxable only if the sum assured in less than the prescribed limit.

Is PLI guaranteed? If yes, who guarantees it?

Yes, Postal Life Insurance is guaranteed by the Government of India.

Does PLI continue to exist even after one quits his/her government job?

Yes, a Postal Life Insurance will continue to exist even after the policyholder quits his/her job, provided he/she continues to pay the premiums.

Does PLI offer loans?

Yes, Postal Life Insurance plans offer loan facility after the completion of 3 to 4 years of the policy term, depending on the policy.

Can a person residing in urban centre avail this scheme under RPLI?

No, RPLI scheme is only for persons who come within the boundaries of the area classified as a rural area.

How do I obtain an insurance scheme under rural postal insurance?

The person will need to visit the nearest post office for obtaining forms and other details to enrol under rural postal life insurance schemes.

What is the maximum amount that can be availed under the insurance schemes of RPLI?

The maximum sum assured amount for insurance schemes under RPLI is INR 10 lakhs

Is medical examination necessary for all schemes under Rural Postal Life Insurance?

A medical test is necessary for all schemes. The scheme in which medical test is not required the maximum sum assured allowed is INR 25,000

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