Postal Life Insurance (PLI) is a life insurance scheme run by the government of India. It offers various policies to provide financial security to policyholders and their families.
As a government-backed insurance scheme, PLI offers various benefits to its policyholders, making it an ideal choice for those seeking financial security for themselves and their families.
It is one of the most reliable insurance schemes in India with a large number of satisfied customers. The scheme was launched in 1884 to cater to the life insurance needs of government employees.
PLI now covers employees of Central & State Governments, Defence and Para-Military Services, Public Sector Undertakings, Banks, Educational Institutions, Local Bodies, professionals (such as doctors, engineers, chartered accountants, MBAs, lawyers etc.) and employees of companies listed with National Stock Exchange (NSE) / Bombay Stock Exchange (BSE).
Eligibility criteria for Postal Life Insurance
PLI is a life insurance scheme offered by the Indian Postal Service. To be eligible for PLI, an individual must fulfill the following criteria:
- The individual must be a citizen of India.
- The individual must be an employee of the postal department.
- Must be an employee of the Indian Postal Service, including Department of Posts, Gramin Dak Sevaks (GDS), and other employees of the Postal Department.
- Must be a member of the Armed Forces, including Army, Navy, and Air Force.
- Must be a member of the Central or State Government or a local body or autonomous body, such as a university or public sector undertaking.
- Must be an employee of a scheduled bank, a financial institution, or a public sector company.
- Must be a professional, such as a doctor, engineer, or lawyer, who has a professional degree and is registered with the relevant regulatory body.
- Must be a member of a cooperative society or a credit society that is recognized by the government.
- Must be an individual who has taken a loan from a bank or financial institution for the purpose of purchasing a residential property.
- Must be a spouse or dependent child of an eligible individual.
|Name of the Insurance||Postal Life Insurance 2023|
|Title||Check the Post office PLI details|
|Subject||Indian Postal Service introduced PLI Policy 2023|
|India Post Website||https://www.indiapost.gov.in/|
|PLI Website||India Post PLI Insurance Website|
Types of Postal Life Insurance
These policies are designed to cater to the diverse needs of people belonging to different age groups and income levels. The types of PLI policies (Saving Schemes) are Endowment Assurance, Whole Life Assurance, Joint Life Assurance, Convertible Whole Life Assurance, and Annuity.
There are several types of Postal Life Insurance policies available to suit the different needs of policyholders. Let’s take a closer look at some of these policies:
Whole Life Assurance (Suraksha): This policy provides life insurance coverage for the entire lifetime of the policyholder. The premium payments for this policy are made for a specified period, and the policyholder can receive the sum assured and bonus on maturity or to their nominee in case of death.
Endowment Assurance (Santosh): This policy provides both life insurance coverage and savings. The premium payments for this policy are made for a specified period, and the policyholder can receive the sum assured and bonus on maturity or to their nominee in case of death.
Convertible Whole Life Assurance (Suvidha): This policy provides life insurance coverage for the entire lifetime of the policyholder. The premium payments for this policy are made for a specified period, and the policyholder can convert the policy to Endowment Assurance during the premium paying term.
Anticipated Endowment Assurance (Sumangal): This policy provides both life insurance coverage and savings. The premium payments for this policy are made for a specified period, and the policyholder can receive a percentage of the sum assured at specified intervals during the policy term.
PLI Yugal Suraksha
Joint Life Assurance (Yugal Suraksha): This policy provides life insurance coverage for two individuals under a single policy. The premium payments for this policy are made for a specified period, and the policyholder can receive the sum assured and bonus on maturity or to their nominee in case of death of either of the insured individuals
PLI Bal Jeevan Bima
Children’s Life Insurance (Bal Jeevan Bima): This type of policy provides coverage for your children in the event of their death. It can also help cover the costs of a funeral or other final expenses.
Accidental Death and Dismemberment Insurance: This type of policy provides coverage in the event of an accidental death or dismemberment. It can help provide financial security for you and your family in the event of a tragic accident.
Each policy has its own unique features and benefits, making it easier for individuals to choose a policy that best suits their needs.
Benefits of PLI
- High Sum Assured: PLI offers a high sum assured to its policyholders. The sum assured depends on the premium paid and the age of the policyholder. The sum assured can be up to Rs. 50 lakhs.
- Low Premiums: PLI offers low premiums compared to other insurance schemes. The premium is calculated based on the age and sum assured of the policyholder.
- Guaranteed Returns: PLI offers guaranteed returns on the investment made. The returns are calculated based on the sum assured, premium paid, and the duration of the policy.
- Tax Benefits: PLI offers tax benefits under Section 80C of the Income Tax Act. The premiums paid towards the policy are eligible for tax deductions.
- Long-term Savings: PLI policies help policyholders to save for the long-term financial needs of their families. The policies offer guaranteed returns, which makes it a safe investment option.
- Life Cover: PLI policies also offer life cover, which provides financial security to the policyholder’s family in case of the policyholder’s unfortunate demise.
Coverage Options of PLI
PLI offers a variety of coverage options and benefits to meet the unique needs of postal employees and their families. Our policies offer:
- Flexible Coverage Options: We understand that your life insurance needs may change over time. That’s why we offer flexible coverage options that can be tailored to your changing needs.
- Guaranteed Acceptance: Our policies are available to all postal employees and their families, regardless of their health or medical history. We offer guaranteed acceptance for many of our policies, so you can get the coverage you need without worrying about medical exams or health screenings.
- Quick and Easy Claims Process: In the event of a claim, our experienced agents will work with you to expedite the process and ensure that you receive the benefits you are entitled to as quickly as possible.
- Additional Benefits: Some of our policies offer additional benefits, such as accidental death and dismemberment coverage, waiver of premium in the event of disability, and accelerated death benefits in the event of a terminal illness.
Features of Postal Life Insurance
- Simple Application Process: The application process for PLI is simple and hassle-free. The policy can be applied through the official website or by visiting the nearest post office.
- Flexible Premium Payment: PLI offers flexible premium payment options. The premium can be paid annually, half-yearly, quarterly, or monthly.
- Multiple Plans: PLI offers multiple plans to choose from. The plans are designed to cater to the diverse needs of the policyholders.
- Nomination Facility: PLI offers a nomination facility to its policyholders. The policyholder can nominate a person to receive the benefits of the policy in case of their demise.
Why Choose Postal Life Insurance?
When it comes to life insurance, you have many options to choose from. However, not all policies are created equal. Postal Life Insurance stands out from the competition for several reasons, including:
Tailored Policies: We understand that no two families are alike, and everyone’s life insurance needs are different. That’s why we offer policies that are tailored to your unique situation. Our experienced agents will work with you to create a plan that meets your specific needs and budget.
Affordable Rates: We believe that everyone deserves access to quality life insurance, regardless of their budget. That’s why we offer some of the most competitive rates in the industry. Our policies are designed to provide comprehensive coverage at a price you can afford.
Excellent Customer Service: At PLI, we put our customers first. Our knowledgeable agents are available to answer any questions you may have and help you choose the right policy for your needs. We strive to provide excellent customer service and support throughout the life of your policy.
Things to Consider Before Choosing a PLI Policy
Before choosing a Postal Life Insurance policy, there are a few things you should consider: Your Age: PLI policies have age restrictions. The minimum age to apply for a PLI policy is 19 years, and the maximum age is 55 years. So, before choosing a policy, check if you are eligible to apply for it.
Your Budget: PLI policies offer coverage at affordable premiums. However, you should choose a policy that fits your budget and financial goals.
Policy Benefits: Each PLI policy offers different benefits. You should choose a policy that offers benefits that are relevant to your needs.
Claim Settlement Ratio: Before choosing a PLI policy, you should check the claim settlement ratio of the company. This will give you an idea of how efficient the company is in settling claims.
Bonus Declaration: PLI policies offer bonuses to their policyholders. You should check the bonus declaration history of the company before choosing a policy.
Check the steps before applying for PLI
To apply for PLI, the following steps need to be taken: Eligibility Criteria Check if you are eligible for PLI. Any Indian citizen who is between the ages of 19 to 55 years can apply for the scheme. Documents Required You will need to submit the following documents to apply for PLI:
- ID proof
- Address proof
- Age proof
- Passport-sized photographs
Premium Payment Modes: Choose the premium payment mode that is convenient for you. PLI offers various modes of premium payment such as monthly, quarterly, half-yearly, or yearly.
Online Application Process: Visit the official website of PLI and fill in the application form. Submit the required documents and pay the premium online. Once the application is processed, you will receive the policy documents.
How to Apply for Postal Life Insurance
Postal Life Insurance is an excellent insurance scheme for the postal employees of India. It offers a high sum assured, low premiums, guaranteed returns, tax benefits, and flexible premium payment options. The application process is simple and hassle-free, and the policyholder can choose from multiple plans. Here's how you can apply for a policy:
Visit the Official Website
The first step to apply for Postal Life Insurance is to visit the official website of PLI. The website provides all the necessary information about the insurance scheme.
Choose the Plan
The next step is to choose the plan that suits your needs. PLI offers multiple plans to choose from.
Fill the Application Form
After choosing the plan, fill the application form with all the necessary details.
Pay the Premium
The final step is to pay the premium for the chosen plan. The premium can be paid online or by visiting the nearest post office.
Claim Process for Postal Life Insurance
To claim PLI, the following steps need to be taken: Types of Claims There are two types of claims – Maturity Claim and Death Claim. Maturity Claim is when the policy matures and the policyholder receives the maturity amount. Death Claim is when the policyholder passes away, and the family receives the death benefit.
Documents Required To claim PLI, the following documents are required:
- Claim form
- Original policy document
- Death certificate (in case of death claim)
- Identity proof of the nominee
- Bank details of the nominee
Claim Settlement Process Submit the required documents to the nearest Post Office along with the claim form. The Post Office will process the claim, and the claim amount will be transferred to the nominee’s bank account.
PLI vs Private Insurance
Postal Life Insurance and private insurance have their own advantages and disadvantages. Some of the key differences between the two are:
- Comparison of Features: PLI policies have limited features compared to private insurance policies.
- Premium Rates: The premium rates of PLI policies are lower compared to private insurance policies.
- Claim Settlement Ratio: The claim settlement ratio of PLI is higher compared to private insurance companies.
How to Purchase Postal Life Insurance?
Purchasing Postal Life Insurance is a simple process. The interested individual can visit any post office and fill out the necessary forms to apply for the policy. The applicant needs to provide their personal and health information, including their age, occupation, and medical history. The policy premium is calculated based on this information.
Once the application is submitted, a medical examination may be required to determine the individual’s health status. After the medical examination, the policy will be issued, and the policyholder needs to pay the premium regularly to keep the policy in force.
Can I purchase PLI online?
No, currently Postal Life Insurance policies can only be purchased at post offices.
Is PLI only for government employees?
No, PLI is not only for government employees. It was initially available only to government and semi-government employees, but in 2017, it was made open to a wider section of the population such as doctors, engineers, CAs, architects and lawyers 1. However, PLI is still not available to everyone. You need to belong to one of the eligible organizations or professions to buy a PLI policy.
Can I surrender my PLI policy?
Yes, you can surrender your policy after three years of premium payment.
What happens if I miss paying my premium?
You have a grace period of one month to pay the premium. If you fail to pay the premium even after the grace period, the policy will lapse.
How is the sum assured calculated?
The sum assured is calculated based on the policyholder's age, occupation, and medical history.
Can I nominate more than one person for the policy benefits?
No, only one person can be nominated for the policy benefits.
What is the maximum sum assured offered by PLI?
The maximum sum assured offered by PLI is Rs. 50 lakhs.
What is the minimum premium for PLI policies?
The minimum premium for PLI policies is Rs. 50 per month.
Is PLI a government-backed insurance scheme?
Yes, PLI is a government-backed insurance scheme.
PLI is a government-run life insurance scheme that provides financial security to policyholders and their families. It offers various policies and saving schemes that cater to the different needs of policyholders. The scheme provides guaranteed returns, lower premiums, income tax benefits, long-term savings, and life cover. Applying for PLI is a simple process, and the claim settlement process is hassle-free.