Complete Guide to the Various Types of Postal Life Insurance Policies

Postal Life Insurance was introduced in 1884, managed by the Postal Department & considered to be one of the oldest schemes. It is a government-backed investment plan that ensures financial security by offering dual benefits of insurance with assured returns. This scheme is further divided into two plans: the Postal Life Insurance Scheme & the Rural Postal Life Insurance Scheme. Initially, it was provided only to postal department employees, then further extended to female employees. With time, it further extended to Central & State government employees, & now to different government departments like Banks, defence, local bodies, educational institutes, public sector undertakings, professionals, stock exchange employees, graduates from central or state government recognised universities or colleges, etc.

Different Types of Postal Life Insurance Policies

Provided are the different life insurance offered under the PLI Scheme:

• Whole Life Assurance Policy – Suraksha

Under this policy type, the amount of sum assured, together with the bonus amount, is paid to the policyholder on their achieving 80 years of age or to their nominees in case of death, whichever is earlier.

1. Minimum Entry Age: 19 years
2. Maximum Entry Age: 55 years
3. Minimum Sum Assured: INR 20,000
4. Maximum Sum Assured: INR 50 lakhs
5. Policy Tenure: On achieving 80 years of age or death, whichever is earlier
6. Conversion Option: It can be converted into an Endowment Assurance Plan, upto the age of 59 years.
7. Premium Payment Maximum Date: 55, 58, or 60 years
8. Loan Facility: Can be opted after 4 years
9. Surrender of Policy: After 3 years, but no bonus in case it is surrendered before 5 years.

• Convertible Whole Life Assurance Policy – Suvidha

This policy type allows you to convert your plan to the endowment assurance plan once a period of 5 years but not 6 years has been completed. In case of the policyholder’s death, the sum assured will be paid to his nominees.

1. Minimum Entry Age: 19 years
2. Maximum Entry Age: 55 years
3. Minimum Sum Assured: INR 20,000
4. Maximum Sum Assured: INR 50 lakhs
5. Policy Tenure: It allows conversion once 5 years have been completed, but not after 6 years. 
6. Loan Facility: Can be opted after 4 years
7. Surrender of Policy: After 3 years, but no bonus in case it is surrendered before 5 years.

• Endowment Assurance Policy – Santosh

Under this type, the policyholder gets their life covered for a certain pre-defined tenure & receives the amount of sum assured along with the bonus amount at the pre-decided maturity date.

1. Minimum Entry Age: 19 years
2. Maximum Entry Age: 55 years
3. Minimum Sum Assured: INR 20,000
4. Maximum Sum Assured: INR 50 lakhs
5. Loan Facility: Can be opted after 3 years
6. Maturity Date: 35, 40, 45, 50, 55, 60 years
7. Surrender of Policy: After 3 years, but no bonus in case it is surrendered before 5 years.

• Anticipated Endowment Assurance Policy – Sumangal

This is a money-back policy, which best suits those individuals who want a return on a periodic basis.

1. Minimum Entry Age: 19 years
2. Maximum Entry Age: a) 40 years in case policy tenure is 20 years
3. 45 years in case of policy tenure is 15 years
4. Minimum Sum Assured: INR 20,000
5. Maximum Sum Assured: INR 50 lakhs
6. Policy Tenure: 15 & 20 years.
7. Survival Benefits: 

a. In case of 15 years of policy tenure:

• On completion of 6th Year: 20%
• On completion of 9th Year: 20%
• On completion of 12th Year: 20%
• On Maturity: Balance 40%

b. In case of 20 years of policy tenure:

• On completion of 8th Year: 20%
• On completion of 12th Year: 20%
• On completion of 16th Year: 20%
• On Maturity: Balance 40%

• Joint Life Assurance Plan – Yugal Suraksha

This plan is applicable if one of the spouses can avail of a Postal Life Insurance. Under this plan, both spouses get covered & receive the sum assured along with the bonus amount.

1. Minimum Entry Age: 21 years
2. Maximum Entry Age: 45 years
3. Minimum Sum Assured: INR 20,000
4. Maximum Sum Assured: INR 50 lakhs
5. Policy Tenure: a) Minimum: 5 years
6. Maximum: 20 years
7. Loan Facility: Can be opted after 3 years
8. Surrender of Policy: After 3 years, but no bonus in case it is surrendered before 5 years.

• Children Policy – Bal Jeevan Bima

This plan includes children of those individuals who are eligible to avail themselves of Postal Life Insurance. The amount of sum assured is only paid on the maturity date, not before that, i.e. not even on the death of the policyholder.

1. Maximum Limit: Up to 2 children
2. Minimum Entry Age for child: 5 years
3. Maximum Entry Age for child: 20 years
4. Maximum Entry Age for parent: 45 years
5. Minimum Sum Assured: INR 20,000
6. Maximum Sum Assured: INR 3 lakhs or the amount equal to the sum assured, whichever is lower
7. Medical Check Up- Not Mandatory
8. Loan Facility: Not Applicable
9. Surrender of Policy: Not Applicable

Bonus Rates Offered by Postal Life Insurance Policies

Conclusion

Postal Life Insurance offers dual benefits of insurance & investments, hence providing financial security to you & your family members. It helps make an affordable, secure, & versatile investment option which offers security with discipline in long-term savings.