What Is Postal Life Insurance?
Postal Life Insurance is a government-backed life insurance program that offers life insurance coverage and returns with bonus (if declared). It was first introduced for postal employees, but now covers a wide range of government and professional workers.
This program can be suitable for people who want secure returns along with life coverage. With affordable premium rates and a wide range of plans, postal life insurance ensures financial protection for you and your family.
Types of Postal Life Insurance Plans
The following are the types of PLI plans:
Whole Life Assurance (Suraksha)
- Entry Age: 19 to 55 years
- Sum Assured: Minimum ₹20,000 | Maximum ₹50 lakh
- Loan Facility: Available after 4 years
- Surrender Option: Allowed after 3 years
- Bonus Eligibility (if declared): No bonus if surrendered before 5 years
- Policy Conversion: Can be converted to an Endowment Assurance Policy up to age 59
- Conversion to another plan is not permitted within one year from the end of premium payment term or from the date of maturity Along with the sum assured, the policy also pays the bonus accrued up to the date of claim, calculated proportionately for the policy year in which the claim arises
- Premiums are payable only up to the age chosen (55, 58, or 60). After that, the policy continues to provide life cover for the rest of the insured’s life, without further premium payments
Endowment Assurance (Santosh)
- Offers sum assured with bonus on maturity or death.
- Minimum entry age: 19 years, Maximum: 55 years.
- Sum Assured is minimum ₹20,000, maximum ₹50,00,000
- Loan facility available after 3 years
- Surrender option allowed after 3 years
- No bonus is declared if surrendered before 5 years
- Proportionate bonus on reduced sum assured if surrendered after 5 years
- Last Declared Bonus: ₹52 per ₹1,000 sum assured per year
Convertible Whole Life Assurance (Suvidha)
- Age at Entry: Minimum 19 years, Maximum 50 years
- Sum Assured: Minimum ₹20,000, Maximum ₹50,00,000
- Issued as a whole life policy, with the option to convert it into an endowment policy after 5 years from inception
- Can be converted into an endowment assurance after 5 years (but before completion of 10 years) without any new medical examination, provided all due premiums have been paidLoan facility is available after 4 years
- Surrender option is only allowed after 3 years
- No bonus if surrendered before 5 years
Anticipated Endowment Assurance (Sumangal)
- Suitable for people who want periodic returns.
- Money-back policy with periodic payouts.
- Minimum age is 19 years, maximum age at entry 40 years for 20 years' term policy & 45 years for 15 years' term policy.
- Sum Assured is up to ₹50,00,000
- Survival benefits are paid at set intervals during the policy term
- Policy Term Options: 15 years and 20 years
- Survival Benefit Schedule: 15-Year Policy:
- 20% each at end of 6, 9, and 12 years and
- 40% + accrued bonus at maturity (15 years)
20-Year Policy: - 20% each at end of 8, 12, and 16 years and
- 40% + accrued bonus at maturity (20 years)
- Bonus: Last declared bonus: ₹48 per ₹1,000 sum assured per year
Children Policy (Bal Jeevan Bima)
- Covers children of Postal Life Insurance policyholders.
- A maximum of 2 children can be covered.
- Eligibility (Child): Age 5 to 20 years
- Eligibility (Parent): Policyholder must be 45 years or younger
- Sum Assured: Up to ₹3,00,000 or equal to parent's sum assured, whichever is lower
- Medical Test: No medical exam for the child is required, but the child must be healthy. Risk starts from date of proposal acceptance
- The parents pay the premium. If the parent dies, no further premiums are required; full sum assured + bonus is paid at end of policy term
- Last bonus rate is ₹52 per ₹1,000 sum assured per year
- Loan: Not available
- Surrender: Not available
- Paid-up Option: Available if premiums are paid continuously for 5 years
Joint Life Endowment Assurance (Yugal Suraksha)
- Suitable for married couples, where at least one spouse qualifies for PLI policies.
- Offers life cover for both spouses under a single premium, including the sum assured and accrued bonuses.
- Sum assured ranges from ₹20,000 to ₹50 lakh.
- Eligible age: Both spouses must be between 21 and 45 years; the elder spouse cannot be older than 45 at the time of entry.
- Policy term options: Minimum 5 years, maximum 20 years.
- Loan facility becomes available after completing 3 years.
- Surrender allowed after 3 years of the policy term.
- No bonus applies (if declared) if the policy is surrendered before completing 5 years.
- If surrendered after 5 years, a proportionate bonus on the reduced sum assured is paid.
- Last declared bonus: ₹52 for every ₹1,000 of the sum assured per year.
Postal Life Insurance Features
Postal Life Insurance (PLI) comes with features that make it a trusted and useful life cover option for working professionals. First, it is backed by the Government of India, making it safe and reliable. The biggest benefit is the high bonus rates2. These bonuses are added to your sum assured and paid out on maturity or death, depending on the type of policy. The premiums are also very affordable, which means you can get good life cover without spending too much money.
Some PLI also provides a loan facility on policies that have completed a few years. You can take a loan against the policy if you need funds in an emergency. If your policy stops due to missed premiums, you can revive it.
In short, PLI is simple, secure, and provides long-term protection and savings.
Benefits of Postal Life Insurance in India
Government-backed security: PLI is a government backed insurance program, managed by the Department of Posts under the Government of India.
Supports long-term savings: Most PLI plans help build a financial corpus over time, offering benefits on maturity or financial support to your family in case of death.
Loan facility: After a specified period, you can take loans against your policy (depending on the type of policy you have), providing liquidity in times of need.
Affordable premiums: Designed to be cost-effective, PLI is accessible to individuals with lower incomes as well , making it suitable for multiple family members.
Flexible coverage options: PLI offers plans for different age groups and income levels, whether you need whole life coverage or want to save for a child’s future.
Encourages disciplined savings: PLI instils regular saving habits, which can help build funds for future goals like buying a home, starting a business, or funding education.
Postal Life Insurance Premium Calculator
The postal life insurance premium calculator is a free online tool offered by India Post. It helps you find out an estimate of the premium required to be paid for your insurance policy. This makes it easy to budget your expenses and choose the right plan.
To use it, go to the official India Post website. Then:
- Open the premium calculator page.
- Select the policy you want (like Whole Life or Endowment).
- Enter your DOB, maturity age, sum assured.
- Choose your preferred premium payment option—monthly, quarterly, half-yearly, or yearly.
- Click on calculate.
The calculator will show you an estimate (depending on the inputs)of the premium you’ll need to pay. It helps you make an informed decision before purchasing a plan. Always use this calculator to compare multiple options and choose the one that fits your needs.
Conclusion
Postal Life Insurance is a trusted and affordable life insurance option offered by the Government of India. It offers high bonus rates, and provides coverage to eligible people. With various plan types, PLI suits a wide range of customers.
FAQs
Do both spouses need to be Government employees to utilize Postal Life Insurance?
No, both spouses do not need to be government employees. Under the Joint Life Assurance plan of Postal Life Insurance (PLI), both husband and wife can be covered if one of them is eligible.
What is the main feature of postal life insurance?
The main feature of postal life insurance is that it offers high bonus rates with assured* returns. It is supported by the Government of India, making it a very safe and reliable savings option. Along with life coverage, it also gives you the benefit of long-term savings, making it a dual-purpose plan.
What does postal insurance cover?
Postal insurance mainly covers the life assured. It pays the sum assured either on maturity or in case of the life assured's death, depending on the type of plan. Some plans also offer money-back options and can include benefits like loans, bonuses, and periodic payouts.
How much is post insurance?
The cost of post insurance depends on the plan you choose, your age, policy term, and the amount of sum assured. You can easily use the postal life insurance calculator available online to know the estimate premium you will need to pay. It helps you select a plan within your budget.
