Premium calculation of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) plans

Postal Life Insurance

Postal Life Insurance policies have been in effect from the year 1884 when they were launched with the approval of the Secretary of State under the British Empire. Postal Life Insurance (PLI) policies were intended to provide affordable insurance coverage to the population of India. Rural Postal Life Insurance (RPLI), on the other hand, was launched in the year 1995 as per the recommendations of the Malhotra Committee. These policies were designed to offer low-cost insurance to the rural population. Both PLI and RPLI offer a range of life insurance plans which have low premiums and offer good coverage.

Before understanding how the premiums for PLI and RPLI policies are calculated, let’s have a look at the different types of life insurance plans offered under both these categories –

Life insurance plans under Postal Life Insurance:

Name of the plan Type of plan Salient features 
Suraksha Whole life plan
  • Coverage up to 80 years
  • The plan earns bonus
  • Sum assured and bonus are paid either on maturity after attaining 80 years of age or on earlier death
Santosh Endowment plan
  • The loan can be availed after 3 years
  • The plan earns bonus
Suvidha Convertible whole life plan
  • The plan is a whole life plan which can be converted to endowment after five policy years
  • Bonus is added to the plan
Sumangal Money-back plan
  • Policy term can be 15 or 20 years
  • 20% of the sum assured is paid as money back benefit periodically
Yigal Suraksha Joint life endowment plan
  • Both husband and wife can be covered under a single plan
  • The death benefit is paid if either of the spouses dies
Bal Jeevan Bima Child plan
  • The policy covers minor children
  • Premiums are waived if the parent dies
  • The plan continues until maturity even after the parent’s death and pays the maturity benefit

Life Insurance plans under Rural Postal Life Insurance

Name of the plan Type of plan Salient features 
Gram Suraksha Whole life plan
  • Coverage up to 80 years of age
  • On maturity the sum assured and bonus is paid
  • On death before 80 years, the sum assured and accrued bonus are paid
Gram Santosh Endowment plan
  • Sum assured of up to INR 10 lakhs can be availed
  • Bonus is added under the plan
Gram Suvidha Convertible whole life plan
  • The plan can be converted to endowment after five years of buying the policy
  • Bonus is added to the plan’s benefits
Gram Sumangal Money-back plan
  • Money-back benefits pay a part of the sum assured at periodic intervals
  • In case of death, the full sum assured with bonus is paid irrespective of money back benefits already paid
Gram Priya Money-back plan
  • The policy has a fixed tenure of 10 years
  • 20% of the sum assured is paid at the end of the 4th and 7th policy years
  • Bonus is also added to the plan
Bal Jeevan Bima Child plan
  • Up to two children can be covered under the plan
  • If the parent dies the premiums are waived off but the coverage continues

Who can buy Rural Postal Life Insurance and Postal Life Insurance plans?

Indian citizens who are employed with any of the following organisations can buy PLI insurance plans –

  • Central or State Government
  • Defence services or para military forces
  • RBI
  • Local bodies
  • Education institutions which are aided by the Government
  • Public sector companies
  • Financial institutions
  • Autonomous bodies
  • Banks which have been nationalised
  • Scheduled commercial bank employees
  • Co-operative society employees
  • Employees working in deemed universities
  • Professionals
  • Employees who work in companies listed in the NSE or BSE in specified sectors

For RPLI insurance plans, the individual should live permanently in a rural area and should be an Indian citizen.

Rural Postal Life Insurance and Postal Life Insurance calculators

RPLI and PLI calculators can be of two types – RPLI and PLI maturity calculator and RPLI and PLI premium calculator. Let’s understand these two calculators in details –

RPLI and PLI maturity calculator

On maturity of both RPLI and PLI insurance plans, the sum assured chosen and the accrued bonuses are paid. Since bonus is not guaranteed or fixed, the exact maturity amount cannot be calculated in advance.

RPLI premium calculator

There is no specific RPLI calculator to calculate the premiums of RPLI insurance plans. There are, however, premium tables which give the monthly premiums payable for RPLI plans. The premium tables for different plans are different. For instance, the premium tables of Gram Suvidha and Gram Sumangal are as follows –

Premium table for Gram Suvidha for sum assured of INR 1 lakh

Entry age Monthly premium per INR 1000 sum assured if the plan is converted to endowment Monthly premium per INR 1000 sum assured if the plan is not converted and matures at 60 years of age
30 years INR 205 INR 305
35 years INR 250 INR 395
40 years INR 325 INR 535
45 years INR 440 INR 80

Premium table for Gram Sumangal for sum assured of INR 1 lakh

Entry age Monthly premium per INR 1000 sum assured for a term of 15 years Monthly premium per INR 1000 sum assured for a term of 20 years
30 years INR 660 INR 500
35 years INR 665 INR 510
40 years INR 675 INR 530

Postal Life Insurance Premium Calculator

Just like RPLI has no specific premium calculator, there is no postal life insurance calculator too. However, like RPLI, there is also a PLI premium table for different types of insurance plans. As per the available PLI premium table, here are the sample premium rates for Santosh and Sumangal –

PLI Premium table for Santosh for sum assured of INR 1 lakh

Entry age Monthly premium per INR 5000 sum assured if maturity age is 50 years Monthly premium per INR 5000 sum assured if maturity age is 60 years
30 years INR 400 INR 260
35 years INR 560 INR 320
40 years INR 860 INR 420
45 years INR 1740 INR 580

PLI Premium table for Sumangal for sum assured of INR 1 lakh

Entry age Monthly premium per INR 5000 sum assured if term is 15 years Monthly premium per INR 5000 sum assured if term is 20 years
19 to 36 years INR 660 INR 500
37 to 42 years INR 680 INR 520
43 to 45 years INR 700 INR 540

Factors affecting PLI and RPLI premiums

The premium rate of PLI and RPLI insurance plans depend on the following factors –

  • Age of the insured – higher the age higher would be the premium and vice-versa
  • Term selected – higher the term lower would be the premium payable and vice-versa
  • Sum assured – higher the sum assured higher would the premium payable and vice-versa
  • Type of policy – the type of policy selected determines the premium rate
  • Mode of premium payment – RPLI and PLI premiums can be paid monthly, quarterly, half-yearly or annually. Monthly premiums are higher than annual premiums because they involve additional administrative costs

Details required for premium calculation

Now you know the factors on which the premium of RPLI and PLI insurance plans depend. So, for calculating the premium of these plans, the following details would be required –

  • Age of the insured
  • Term of the plan
  • Sum assured that you want
  • Premium payment mode
  • Type of plan

Once you have all these relevant details, you can use RPLI and PLI premium tables and calculate the premiums payable for the policy yourself.

Benefits of PLI calculator

Calculating the premiums for RPLI and PLI insurance plans is beneficial because of the following reasons:

  • You can ascertain the premium payable for the policy before you actually buy the policy. This way you can know exactly how much the policy would cost you
  • You can provision in your financial budget regarding the premiums payable so that the policy does not lapse
  • You can select the coverage level at which the premium would be the most affordable for you
  • By knowing the premium rates you can also compare PLI and RPLI insurance plans with other insurance plans offered by life insurance companies and find out which plan offers the lowest premium rate

Both Postal Life Insurance and Rural Postal Life Insurance plans offer good coverage at lower premiums. The bonus that these plans give is also attractive which helps in creating a substantial corpus over the policy tenure. You can, therefore, choose plan offered by PLI and RPLI (if you live in a rural area) to avail life insurance coverage as well as to create a good corpus on the maturity of the plan. The tables are readily available on the official website of PLI and the premiums can be calculated easily. So, calculate the premiums and invest in an RPLI or a PLI insurance plan at the earliest.

Leave a Reply

Your email address will not be published. Required fields are marked *