A Guide to Postal Life Insurance

Besides the life insurance plans offered by insurance companies in India, the post office also offers various types of life insurance schemes. These schemes are affordable schemes of life insurance which are offered by the Indian Post Office. The schemes are called PLI schemes. PLI full form is Postal Life Insurance (PLI). Let’s have a look into the PLI India Post life insurance schemes.

History of PLI India Post

The concept of Postal Life Insurance was first floated in the year 1884 when the Secretary of State to Her Majesty approved life insurance schemes for the employees of the post office. In the year 1888, the scheme expanded its scope and covered the employees of the Telegraph department as well. Later on, in the year 1894, female employees in the Postal and Telegraph departments were also covered under PLI which was a first in the history of insurance.

PLI India Post is the oldest life insurance company in India. Initially, the plans offered under Postal Life Insurance provided coverage of up to INR 4000 only. However, in recent times, the limit has increased. Nowadays, you can enjoy coverage of up to INR 50 lakhs in aggregate under different types of post insurance schemes.

Who can buy PLI insurance plans?

Post office life insurance schemes are offered to the following individuals if they fulfil the entry age limits prescribed under different plans –

  1. Individuals employed in the Central Government
  2. Individuals employed in the State Government
  3. Individuals employed in the Central Government owned Public Sector Undertakings
  4. Individuals employed in the State Government owned Public Sector Undertakings
  5. Individuals employed in Universities
  6. Individuals employed in Government aided educational institutes
  7. Individuals employed in nationalized banks
  8. Individuals employed in local or autonomous bodies
  9. People working in joint ventures wherein the Central or the State Government has at least a 10% stake
  10. People employed in credit co-operative societies
  11. Officers and staff in Defence services
  12. Officers and staff in paramilitary forces

Features of Postal Life Insurance

PLI has the following aspects which you should know about –

  1. Under Section 118 (C) of the Insurance Act, 1938, PLI is an exempted insurance company
  2. LIC Act, 1956 also exempts PLI under Section 44 (D)
  3. Six types of life insurance plans are offered under post office life insurance
  4. All the plans offered by PLI are traditional life insurance plans which offer guaranteed benefits
  5. The premiums are very low and easily affordable
  6. All the policies under PLI scheme offer attractive rates of bonus which help in enhancing the plan benefits
  7. A group insurance policy is also offered by the Postal Life Insurance. This policy is issued to Extra Departmental Employees of the Department of Posts

Postal Life Insurance Plan Details

As stated earlier, there are six types of traditional life insurance plans offered under post insurance. These plans and their features are as follows –

  1. PLI Whole Life Assurance Plan, Suraksha

    Suraksha is a whole life insurance policy offered by PLI which runs till 80 years of age. The policy promises a death benefit in case of death during the policy tenure as well as a maturity benefit if the plan matures. The features of the scheme are as follows –

    • You can avail a loan under the plan after the first four policy years are over
    • You can also surrender the plan if you want after the plan has completed three years
    • The plan is a participating plan where bonuses are declared
    • The sum assured and accrued bonus is paid either on death or on maturity
    • Premiums are payable only up to 55, 58 or 60 years of age

      Eligibility parameters of PLI Whole Life Assurance Plan, Suraksha

      Entry age 19 to 55 years
      Maturity age 80 years
      Sum assured INR 20,000 to INR 50 lakhs
      Policy term 80 – age at entry

      Sample premium rates of PLI Whole Life Assurance Plan, Suraksha

      Here are the annual premiums payable for the policy at different combinations of age and premium payment term if the sum assured is INR 10 lakhs

      Age of the insured If premium is paid for up to 55 years If premium is paid for up to 60 years
      30 years INR 24,950 INR 22,550
      40 years INR 44,150 INR 36,950
      50 years INR 135,360 INR 76,610
  2. PLI Endowment Assurance Plan, Santosh

    This is an endowment assurance plan where either a death benefit or a maturity benefit is paid. The salient features of the plan are as follows –

    • The policy can be surrendered after the completion of 3 years
    • You can get a policy loan after the first three policy years
    • The sum assured and vested bonus is paid on death or maturity
    • Attractive rates of bonus are declared under the plan

      Eligibility parameters of PLI Endowment Assurance Plan, Santosh

      Entry age 19 to 55 years
      Maturity age 35 to 60 years
      Sum assured INR 20,000 to INR 50 lakhs
      Policy term 5 to 41 years

      Sample premium rates of PLI Endowment Assurance Plan, Santosh

      Here are the sample annual premiums payable for the policy at different combinations of age and term if the sum assured is INR 5 lakhs

      Age of the insured Term 15 years Term 20 years
      20 years INR 31,430 INR 23,290
      30 years INR 32,600 INR 23,290
      40 years INR 32,600 INR 24,450
  3. PLI Convertible Whole Life Assurance Plan, Suvidha

    Suvidha is a whole life insurance plan which allows you the facility of conversion. You can convert the plan to an endowment assurance plan if you want. The features of the policy are as follows –

    • Conversion option can be exercised after the first five years have been completed
    • The plan is offered as a participating plan which earns bonus
    • Loans are available after the first four years
    • You can even surrender the plan if the first three years have been completed

      Eligibility parameters of PLI Convertible Whole Life Assurance Plan, Suvidha

      Entry age 19 to 50 years
      Maturity age For whole life cover – 60 years
      If conversion option is selected – 50, 55 or 58 years
      Sum assured INR 20,000 to INR 50 lakhs
      APolicy term If conversion option is not selected – 10 to 41 years
      If conversion option is selected – 5 years to 39 years

      Sample premium rates of PLI Convertible Whole Life Assurance Plan, Suvidha

      Here are the sample monthly premiums payable for the policy if the conversion option is exercised and not exercised. The sum assured is assumed to be INR 5 lakhs

      Age of the insured If conversion option is not selected and the plan matures at 60 years of age If conversion option is selected and the plan matures at 50 years of age
      20 years INR 700 INR 1500
      30 years INR 1000 INR 2500
      40 years INR 1600 INR 7700
  4. PLI Anticipated Endowment Assurance Plan, Sumangal

    This is an anticipated endowment assurance plan or simply a money back plan which pays you income at specified intervals. The salient features of the policy are as follows –

    • In case of death the full sum assured is paid irrespective of the money back benefits that you have previously received under the policy
    • The plan participates in profits and earns bonuses
    • The survival benefits are paid three times during the term of the plan. In case of a 15 year plan, the benefits are paid at the end of the 6th, 9th and 12th policy year. In case of a 20 year plan however, the benefits are paid at the end of the 8th, 12th and 16th policy year
    • 20% of the selected sum assured is paid as survival benefits
    • When the plan matures, 40% of the sum assured and accrued bonuses are paid

      Eligibility parameters of PLI Anticipated Endowment Assurance Plan, Sumangal

      Entry age 19 to 45 years
      Maturity age 60 years
      Sum assured Up to INR 50 lakhs
      Policy term 15 or 20 years

      Sample premium rates of PLI Anticipated Endowment Assurance Plan, Sumangal

      Here is the sample monthly premiums payable for the policy at different combinations of age and term if the sum assured is INR 5 lakhs –

      Age of the insured Term 15 years Term 20 years
      30 years INR 3300 INR 2500
      40 years INR 3400 INR 2700
  5. PLI Joint Life Assurance Plan, Yugal Suraksha

    Yugal Suraksha is a joint life plan which covers two individuals under the same plan. The features of Yugal Suraksha are as follows –

    • The plan covers a married couple under the same plan on a joint life basis
    • To buy the plan at least one of the spouses should be eligible to buy Postal Life Insurance
    • Bonuses are declared under the policy
    • Loan can be availed after the completion of three policy years
    • The policy can be surrendered after the completion of the first three policy years
    • If either of the covered spouse dies, the death benefit is paid which is the sum assured and vested bonus
    • A premium discount of INR 1 per INR 10,000 sum assured is allowed if you choose a coverage level of INR 40,000 or above

      Eligibility parameters of PLI Joint Life Assurance Plan, Yugal Suraksha

      Entry age 21 to 45 years
      Maturity age 60 years
      Sum assured INR 20,000 to INR 50 lakhs
      Policy term 5 to 20 years

      Sample premium rates of PLI Joint Life Assurance Plan, Yugal Suraksha

      Here is the sample monthly premiums payable for the policy at different combinations of age and term if the sum assured is INR 10 lakhs –

      Equivalent age of the couple Term 10 years Term 15 years Term 20 years
      25 years INR 9300 INR 6000 INR 4200
      30 years INR 9400 INR 6000 INR 4300
      35 years INR 9400 INR 6100 INR 4400
  6. PLI Children Life Plan, Bal Jeevan Bima

    Bal Jeevan Bima, as the name suggests, is a child insurance plan which helps in creating a financial corpus for your child. The salient features of the plan are as follows –

    • A child is insured under the plan
    • You can buy the plan to cover a maximum of two dependent children
    • Premiums are waived if the parent dies during the term of the policy. Thereafter, the sum assured and accrued bonus is paid when the policy matures
    • The parent would be the policyholder of the plan who would also be responsible for paying the premiums
    • The parent should have a PLI policy to be eligible to buy this policy for his/her children

      Eligibility parameters of PLI Children Life Plan, Bal Jeevan Bima:

      Entry age of the child 5 to 20 years
      Entry age of the parent Up to 45 years
      Sum assured Minimum – INR 3 lakhs
      Maximum – equal to the sum assured of the parent

      Bonus offered under Postal Life Insurance

      All PLI insurance plans offer attractive bonus rates every financial year. The bonus rates are not fixed. They depend on the profit experience of PLI during the financial year. However, for the last financial year, the bonus declared under different plans of PLI is as follows –

      Name of the plan Bonus declared
      Suraksha INR 85/ INR 1000 sum assured
      Santosh INR 58/INR 1000 sum assured
      Suvidha INR 85/ INR 1000 sum assured
      Sumangal INR 53/ INR 1000 sum assured
      Yugal Suraksha INR 58/ INR 1000 sum assured
      Bal Jeevan Bima INR 58/ INR 1000 sum assured

Why choose PLI India post?

There are various benefits of buying PLI insurance plans. These are as follows –

  1. The premiums are very affordable and you can enjoy life insurance coverage at low premium rates
  2. The plans offered by PLI earn attractive rates of bonus
  3. Buying a plan is simple and you can buy a policy online or through the nearest post office
  4. Loans are available under all plans which allows you to take financial help from your own policy when you need
  5. The claims under PLI insurance plans are settled quickly
  6. The premium can be paid monthly, quarterly, half-yearly or annually as per your suitability
  7. There is a range of life insurance plans offered by PLI and you can choose any plan that you want

Turnaround time limits for PLI services

Whether you have a claim or you need any other service under your PLI insurance policy, the post office ensures that the services are done quickly. As per the guidelines, there are different time limits for different services that you need. These time limits are as follows –

Type of service Maximum turnaround time taken
Issue of acceptance letter or policy bond of the insurance policy 15 days after receiving the documents
Payment of maturity claim, paid-up value or survival benefit 15 days after receiving the documents
Payment of death claims 30 days after receiving the documents if no investigation is involved
90 days if the investigation is involved
Revival or conversion of the policy 15 days after receiving the documents
Taking a policy loan 10 days after receiving the request
Changing the address in the policy documents 5 days after receiving the request
Changing the nomination under the policy 10 days after receiving the request
Assignment of the policy 10 days after receiving the request
Issuance of a duplicate policy bond 10 days after receiving the request

Forms and documents under PLI

There are different types of forms under PLI schemes which you need to fill and submit depending on the type of service you need. The forms and their respective uses are as follows –

Type of form Need
PLI Proposal Form This form is needed to propose a scheme of PLI insurance that want to buy
RPLI Proposal Form This form is needed to propose a scheme of Rural Postal Life Insurance that you want to buy
Maturity Claim Form If your PLI policy matures, you would need to fill up this form and submit it to receive the maturity benefit of the policy
Loan Application Form If you want to apply for a policy loan under any of your PLI insurance plan, you would need to fill out and submit this form
Nomination Form This form would be required to appoint a nominee who can collect the death benefit of the PLI policy in case of your death. You can also use the form to change an existing nominee under an existing PLI insurance policy
Personal bond of Indemnity If you lose your original policy bond you would have to fill up and submit this indemnity bond to get a duplicate policy bond
Revival Application Form If your PLI policy has been lapsed due to non-payment of premium and you want to revive the lapsed policy, this form would be needed for revival
Surrender Application Value This form would be needed if you want to surrender an existing PLI insurance policy and receive the surrender value
AEA Survival Benefit Form This form is applicable for Sumangal plan which is an anticipated endowment assurance (AEA) plan. This form is needed to claim the money back benefit which is payable under the policy
APS Children Policy Proposal Form This form needs to be filled and submitted if you want to buy the Bal Jeevan Bima policy which is a children’s policy
APS PLI Proposal Form This is a proposal form for buying PLI
Children Policy Proposal This is a proposal form for buying a child plan
CWA Conversion Form If you buy Suvidha policy which is a whole life convertible plan, you would need to fill out and submit this form if you want to convert your whole life plan to endowment plan
Death claim form This form would have to be filled and submitted by the nominee or legal heirs of the insured to claim the death benefit of the PLI policy

All the above-mentioned forms can be downloaded from PLI website using the http://www.postallifeinsurance.gov.in/innerpage/downloads.php. You should fill up the downloaded forms, sign them and submit them to the post office to get your service request resolved.

Guide to buying PLI insurance plans

PLI offers its customers complete guidelines on buying and storing their insurance plans so that they can enjoy the plan benefits easily. The customer guidelines prescribed by PLI for its customers are as follows –

  1. Safety of the bond

    The policy bond of the policy should be kept in a safe place so that it can be submitted to make a claim when required.

  1. Policy number

    Each PLI policy comes with a 13 digit unique policy number. You should keep this number handy to enquire about your policy details or to make a claim.

  1. Premium payment

    The premiums of the policy should be paid timely. If the premiums are not paid on time, the policy would lapse. The premiums should be paid in advance on the 1st of the month. However, if you forget, you get a grace period till the last day of the month to pay the premiums. You can also arrange for auto-debit of your premium from your monthly salary.

  1. Online transactions

    You can transact online under your PLI policy. To do so you should generate a customer ID and register your mobile number and email ID at the nearest post office. Once your details are registered with the post office and you get a customer ID, you can transact online.

  1. Your communication details

    Your address and phone number should be maintained with the post office throughout the duration of the policy. If there is any change in the address you should inform the same to the post office and get the address updated.

  1. Nomination

    Nominating an individual to receive the death benefit is necessary. If you have made a nomination the death claim is settled without hassles. You can also change the nominee during the policy tenure whenever you want by making a simple request.

  1. Lapse of the policy

    Policy lapses if the due premiums are not paid. If the policy has not completed three years and you have paid premiums for less than six months, your policy would lapse. However, if the policy has completed three years and you have not paid premiums for more than twelve months, the policy would lapse if premiums are not paid within the due date.

  1. Revival

    A lapsed policy can be revived by paying the due premiums. Automatic revival is possible if you have not paid premiums for 12 months and the policy has completed 3 years or if you have not paid premiums for 6 months and the policy has not completed 3 years. To revive you should pay the due premiums and inform the Chief Postmaster General. You would also have to submit a declaration of good health and a letter from the employer stating that you have not taken leave for medical reasons.

  1. Customer care

    You can contact the toll-free number of the postal department for any queries regarding your policy. The numbers are 1800 180 5232 and 155232. For any complaints, you can http://ccc.cept.gov.in/complaintregistration.aspx and register your complaint. You can also send an email to pli.dte@gmail.com with your complaint.

How to buy PLI insurance schemes?

You can buy any insurance policy offered by PLI India Post online or offline. Offline policies can be bought by visiting the nearest post office and applying for the policy. Alternatively, you can buy the policy online easily. PLI offers you the facility to buy the policy online from its website. To buy, you should take the following steps –

  1. Visit the PLI India Post website http://www.postallifeinsurance.gov.in/index.php
  2. Choose ‘Buy Policy’ from the home page
  3. A new link would open which is https://pli.indiapost.gov.in/CustomerPortal/loadQuotePage.action. You would be able to find the online application form in this link
  4. You should fill in your details in the online application form. The details include your date of birth, type of policy you want to buy, sum assured, gender, the name of the policy, email address, name, mobile number and PIN code. These details are mandatory. Besides the mandatory details, you can also mention your occupation, monthly income and expenditure and State.
  5. When you submit the form, the premium amount and the policy details would be shown
  6. You would then have to select the mode of premium payment and buy the policy
  7. Once the premiums are paid online, the policy would be issued

Documents required for buying PLI plans

You would have to submit your documents to buy PLI insurance plans. These documents are as follows:

  1. Age proof
  2. Address proof
  3. Identity proof
  4. Declaration by a medical examiner after a medical check-up has been done
  5. Certificate by your immediate supervisor
  6. Certificate by a DO or FO or PLI Agent
  7. Declaration of proponent
  8. Declaration of spouse

By filling up the form and submitting these documents a PLI policy can be easily bought.

PLI – the success so far

Ever since it was conceptualised in the year 1884, PLI has been popular given the low premium rates and attractive bonus declarations. The success story of PLI insurance policies in the last few years can be seen from the below-mentioned statistics –

Financial year Number of policies sold during the year Total number of in-force policies at the end of the financial year The aggregate sum assured of all in-force policies Premium income earned during the financial year
2011-12 482,423 50,06,060 INR 76,591.33 crores INR 3681.03 crores
2012-13 454,053 52,19,326 INR 88,896.46 crores INR 4557.29 crores
2013-14 433,182 54,06,093 INR 102,276.08 crores INR 5352.01 crores
2014-15 324,022 52,42,257 109,106.93 crores INR 5963.46 crores
2015-16 198,606 49,30,838 INR 109,982.09 crores INR 6657.03 crores
2016-17 213,323 46,80,013 INR 113,084.81 crores INR 7233.89 crores

The bottom line

If you are eligible to buy postal life insurance plans, you can invest in any plan of your choice. The plans would give you good insurance coverage and also promise returns through bonus declarations. So, choose an insurance policy of your needs and invest in PLI India post plans.

Frequently Asked Questions:

  1. Can I avail a loan even if my policy is in a lapsed state?

    Loans under PLI insurance plans are available only if your policy has completed three years. Even then, if the surrender value is at least INR 1000 can you avail a loan. So, if your policy is in a lapsed state but it has completed three years and the surrender value is more than INR 1000 you can apply for a policy loan.

  1. What is the assignment?

    The assignment is when you transfer the ownership of your policy to someone else. If you assign the policy the policy benefits would be payable to the new owner. However, you would continue to remain the life insured

  1. Can I apply for a child plan if I am more than 45 years old?

    No, the age of the parent should be below 45 years to apply for the child insurance plan offered by PLI.

  1. If I live in a rural sector can I buy PLI plans?

    There are different types of plans created for the population of the rural sector. These are called Rural Postal Life Insurance (RPLI) Plans. So, if you live in the rural sector, you can buy RPLI plans.

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