Postal Life Insurance: All You Need To Know About PLI

PLI can be used only by government and semi-government employees. PLI is also the only insurer that offers policyholders high bonuses at reasonably priced premiums.
Postal Life Insurance
Postal Life Insurance

The Postal Life Insurance (PLI) plan offers significant premium returns on life insurance. Under this policy, you can be granted up to Rs 50 lakh as the maximum cash assured. The Government of India offers this policy, which is open to the employees of Central and State Public Sector Enterprises, joint ventures with at least 100 per cent government/public sector undertaking (PSU) stake, autonomous bodies, local bodies, cooperative societies, government-aided educational institutions, the Central and State government universities.

Postal Life Insurance also administers a group insurance policy specifically for "Gramin Dak Sevaks," i.e., extra-departmental employees of the department of posts.

Features of Postal Life Insurance Policy:

A policyholder can avail of the following benefits:

Nomination Option: The policyholder can choose who will receive the benefits and can also make changes to the nomination.

Loan Facility: According to this policy, the policyholders are given a loan facility. Once an Endowment Assurance policy has been in force for three years, or when a Whole Life Insurance policy reaches a four-year policy period, the policyholder can use the policy as collateral to the heads of the region or circle on behalf of the President of India. Assignment options are also offered, under this plan.

Policy Revival: A lapsed policy can be brought back by a policyholder. This could be achieved in the following ways:

  • If the policy was active for less than three years and if it lapsed after six missed premium payments.

  • If the policy was active for more than three years and if the policy lapsed after 12 missed premium payments.

Duplicate Policy Document: A duplicate will be provided if the policyholder misplaces the original policy paper. Also, the same holds true if the insured asks for a duplicate policy document because the original has been destroyed by fire, destruction, or mutilation.

Conversion Of Policy: It is possible to switch from Whole Life Assurance to Endowment Assurance. According to the rules and specifications provided by the insurer, an Endowment Assurance Policy can also be converted to a different Endowment Assurance plan.

Advantages Of Investing In PLI: Some of the other benefits and discounts offered under the Postal Life Insurance scheme are as follows:

  • The insured can benefit from income tax exemption as provided under Sec. 88 of the Income Tax Act.

  • Additional features that come under this policy are Assignment, Loan, Conversion, Surrender, and Paid-Up Value choices.

  • You can transfer the policy to any Circle in India, at no additional charges.

  • You can use a passbook to keep track of the payment of premiums and in case of loan transactions, etc.

  • You can pay the premium on an annual, half-yearly, and monthly basis. Payments can be made on any working day on the due date.

  • If you pay the premium for six months in advance, you can avail yourself of a discount on the premium worth one per cent of the value.

  • If you pay the premium for a 12-month policy period in advance, you can avail of a discount on the premium worth two per cent of the value.

  • A nomination facility is available.

  • Claiming benefits is now fast and simple, due to the centralized accounting system being in place for this scheme.

Postal Life Insurance Premium Calculator

You can always make use of the online calculator to find out how much premium you would need to pay for your postal life insurance policy. To estimate the premium amount for the coverage you need, this tool allows you to enter some key details. The premium is mostly affected by factors such as the age of the policyholder, the type of policy, the required sum assured, and other factors. The details required include age at application, policy type, sum assured, date of birth, spouse’s date of birth when applying for the Yugal Suraksha plan, age of insured at policy maturity, etc. The sum assured can range from a minimum of Rs 10,000 to a maximum of Rs 5 lakh. Postal Life Insurance offers different policy types which include Endowment Assurance Plan, Anticipated Endowment Assurance Plan, Whole Life Assurance Plan, and Convertible Whole Life Assurance Plan. Once you submit all the required information, details about your monthly premium will be sent to you after you click the submit tab.

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