For All the Government Employees: Postal Life Insurance is Here

Life Insurances 259 views

If you are a government employee, it would not be wrong to say that as a significant perk, you can go for Postal Life Insurance i.e. PLI. When it comes to PLI, it covers many departments of the State as well as Central governments, public sector undertakings, financial institutions, nationalized banks and so on. Thus, being a government employee, you can avail this insurance at much lower rates as compared to those of private insurance companies.

What is a Postal Life Insurance(PLI)?

When it comes to Postal Life Insurance PLI, it was initiated in 1884, and is presently handled by the Department of Posts that comes under Government of India. It was initially started as a way of ensuring the welfare of the government employees which has now grown by leaps and bounds.

What are the various policies offered by PLI?

In postal life insurance, you have seven plain vanilla insurance plans that include:

Whole Life Assurance (SURAKSHA)

According to this plan, the amount of the insurance along with its bonus is to be paid to the nominee or legal heir, followed by the death of the insured person.

Joint Life Assurance (YUGAL SURAKSHA)

When it comes to this insurance policy, it insures both the spouses under this single cover. Moreover, it will also extended to the family member, and if either of the spouse is a government employee, this particular policy can easily be availed. Not only this, another perk of this policy is the fact that it requires the payment of only just a single premium for both.

Must Read  Which One is Better: Single or Regular Life Insurance Premium

Endowment Assurance (SANTOSH)

According to this endowment policy, the sum assured along with the bonus is liable for the payment at the pre-determined age of the maturity. However, after the unfortunate demise of the policy holder, the nominee will get the sum assured.

Convertible Whole Life Assurance (SUVIDHA)

Well, this insurance policy offers you with the provision of being changed into an endowment assurance plan once this policy completes five years.

Anticipated Endowment Assurance (SUMANGAL)

This insurance policy provides you with the periodical returns and is basically a money-back policy. In fact, the maximum sum-assured  you will get in this policy is Rs. 5 lakh.

Children Policy

It is an extented policy for the children of the government employees. Moreover, it can be taken on either the sum assured of the policy holder or Rs. 1 lakh, well whichever is lower.

Insurance for the Disabled

Postal Life Insurance also extends insurance to the disabled persons upon a medical examination that helps deciding on the premium to be paid.

What are the Benefits of Availing Postal Life Insurance?

However, as these types of insurance policies are yet to gain the prominence, even though it offers plethora of benefits which make them attractive. Some benefits are listed below:

  • Postal Life Insurance investments are liable for the tax benefits just like other life insurance policies.
  • They provide you with the coverage with immediate effect.
  • They give you the ease of transfer from anywhere across India.
  • The conversions are quite easy from a whole life insurance to an endowment assurance.
  • Loans can easily be availed on endowment assurance policy with the effective completion of three years of the plan.
  • The delay in a month's premium will lead towards the fine of Re1 upon every Rs.100 of the sum assured.
Must Read  SBI Life- Smart Money Planner: Bigger Saving & More Advantages

Things to Remember

  • However, Postal Life Insurance is gaining lot of limelight these days gradually, thus it is not easily available at all post offices in India. Only a few post offices having the postal life insurance divison can offer you this plan. In addition to, you cannot buy the postal life insurance online, thus you need to visit the post office so as to invest in a policy.
  • The minimum and maximum age that is required to avail postal life insurance is 18 years-55 years.
  • The maximum sum-assured that you can get is approximately Rs.10 lakh.
  • The government employees can continue with their policies even after leaving their jobs.
  • You can pay the premiums on a monthly, half-yearly or annual basis.
  • These policies can be surrendered prematurely. When it comes to endowment assurance policy, it can be returned after 3 years, whereas the whole life insurance policy can be returned after completing the 4 years.
  • So, for all the government employees, there is no denying on the fact that Postal Life Insurance is surely an attractive and affordable plan which they can opt in order to cater all their investment needs.