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Features
Ref. No. KLI/22-23/E-BB/492
Postal life insurance offers financial security with low premiums, extensive coverage, and various policy options.
Postal Life Insurance (PLI) is one of India’s oldest life insurance schemes. Introduced on February 1, 1884, it was initially meant for postal employees. Over the years, it has expanded its coverage to include various other groups, making it accessible to a larger population segment.
Today, PLI is open to employees of the Central and State Governments, Defense services, Paramilitary forces, educational institutions, nationalized banks, and local bodies.
Postal Life Insurance (PLI) is a type of life insurance scheme offered by the Department of Posts in India. PLI offers a range of life insurance products that cater to individuals’ insurance and savings needs. The government backs the policies, making them a secure and reliable option for policyholders.
The scheme offers life insurance coverage to the children of policyholders, with eligibility extending to a maximum of two children per policyholder (parent). Children aged between 5 and 20 years are eligible for this coverage. The maximum sum assured is ₹3 lakh or equal to the sum assured of the parent, whichever is lower.
PLI comes with numerous benefits, making it a preferred choice for many. Here are some of the key advantages of opting for postal life insurance.
One of the most significant benefits of PLI is the security it offers. Being backed by the Government of India, policyholders can be assured of the reliability and stability of their insurance coverage. This government guarantee provides a sense of security and trust unparalleled in many other insurance schemes.
PLI offers highly competitive premium rates compared to other life insurance schemes. This affordability makes it accessible to a broader section of government and semi-government employees. Lower premium rates do not compromise the benefits or the sum assured, providing excellent value for money.
PLI policies offer attractive bonuses, which are declared annually. These bonuses significantly enhance the policy’s overall returns, making it a lucrative option for long-term savings and investment. The accumulated bonuses and the sum assured provide substantial financial benefits to the policyholders or their nominees.
PLI offers flexible premium payment options to suit policyholders’ convenience. Premiums can be paid monthly, quarterly, half-yearly, or annually, allowing individuals to choose a payment schedule that fits their financial planning. This flexibility ensures that policyholders can maintain their policies without any financial strain.
Each policy type offers unique features and benefits, ensuring comprehensive coverage and financial security. Let us explore the different types of policies offered by Postal Life Insurance.
Whole Life Assurance (Suraksha) is designed to provide coverage throughout the policyholder’s life. Under this plan, the sum assured and accrued bonuses are paid to the nominee upon the policyholder’s death. This policy ensures lifelong financial security for the insured’s family, making it an excellent choice for individuals seeking long-term coverage.
Convertible Whole Life Assurance (Suvidha) offers the flexibility of converting a whole-life policy into an endowment policy after a specified period, usually five years. This plan is ideal for those wanting to switch to an endowment plan to receive maturity benefits after a certain period.
Endowment Assurance (Santosh) provides a lump sum to the policyholder upon maturity or to the nominee in the event of the policyholder’s death before maturity. This policy suits those who want to ensure a financial corpus for future needs, such as children’s education or retirement planning.
Anticipated Endowment Assurance (Sumangal) is a money-back policy that provides periodic returns during the policy term, the sum assured, and bonuses at maturity. This plan is ideal for individuals who need periodic cash flow for planned expenditures.
Joint Life Assurance Plan (Yugal Suraksha) covers both spouses under a single policy, providing financial security to the surviving spouse and family. This policy is ideal for couples seeking comprehensive coverage in one plan.
Children Policy (Bal Jeevan Bima) provides life insurance coverage to policyholders’ children. It ensures that children’s future financial needs are met, even in the absence of the parents. This policy covers a maximum of two children between the ages of 5 and 20.
The bonus rates for the fiscal year 2023-24 have been declared, reflecting the ongoing commitment of PLI to provide substantial benefits to its policyholders.
| Types of Life Insurance |
Bonus Rated of PLI Scheme |
Whole Life Assurance |
₹76 per 1000 sum assured per year |
Convertible Whole Life Assurance |
₹76 per 1000 sum assured per year |
Endowment Assurance |
₹52 per 1000 sum assured per year |
Joint Life Assurance |
₹52 per 1000 sum assured per year |
Anticipated Endowment Assurance |
₹48 per 1000 sum assured per year |
Bal Jeevan Bima - Children Policy |
₹52 per 1000 sum assured per year |
It is a transparent declaration of what customers can expect from PLI regarding service delivery, grievance redressal, and overall customer experience. The PLI Citizen’s Charter is designed to enhance trust, ensure accountability, and clarify the services offered by PLI.
| Service |
Turnaround Time |
Issue of acceptance letter |
15 days |
Inter-Circle transfer of policies |
10 days |
Issue of policy bonds |
15 days |
Settlement of claims on maturity |
30 days |
Settlement of death claim involving investigation |
90 days |
Settlement of claims on death with nomination |
30 days |
Changes of address |
10 days |
Change of nomination |
10 days |
Assignment |
10 days |
Conversion of policy |
15 days |
Purchasing a postal life insurance (PLI) policy is straightforward and convenient. It offers several options for government and semi-government employees to secure their financial future.
Claim settlement in postal life insurance refers to the process where the policyholder’s beneficiaries receive the sum assured and applicable bonuses upon the insured’s death or the policy’s maturity. The process is designed to be transparent, timely, and supportive of the policyholder’s family members during loss or financial transition.
By preparing the necessary documents, and adhering to policy terms, you can navigate the process with confidence. Postal Life Insurance remains a reliable option for many, and with proper knowledge of the claim settlement process, you can ensure that your coverage continues to provide the financial security it was intended to offer.
1
Yes, premiums paid towards Postal Life Insurance (PLI) policies are eligible for income tax rebate under Section 80C of the Income Tax Act, subject to current tax laws.
2
Premiums for PLI policies can be paid monthly, quarterly, half-yearly, or annually, providing flexibility based on the policyholder’s preference and financial planning.
3
Yes, you can transfer your Postal Life Insurance policy to a different city by submitting a request to the nearest Head Post Office along with the updated address proof and other necessary documents.
4
Yes, there is a grace period of one month for annual, half-yearly, and quarterly premium payment modes, and 15 days for monthly premium payment mode in Postal Life Insurance.
5
Yes, you can revive a lapsed Postal Life Insurance policy within two years from the date of the first unpaid premium by paying the overdue premiums along with interest and submitting a declaration of good health.
6
Yes, besides income tax rebate under Section 80C for premiums paid, the maturity proceeds and death benefits of PLI policies are tax-free under Section 10(10D) of the Income Tax Act, subject to applicable tax laws.
7
The claim settlement process involves notifying the nearest Head Post Office, submitting required documents, including the policy bond and death certificate (for death claims), verification by PLI authorities, and disbursal of the claim amount to the nominee/beneficiary.
8
Yes, the minimum age to purchase a postal life insurance policy is 19, and the maximum age varies depending on the type of policy.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
