Postal Department offering Rs 50 lakhs insurance: Know how to apply

Postal Life Insurance: The Postal Department, through Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), indeed offers various life insurance schemes with a maximum sum assured of Rs 50 Lakhs. Postal Department offering Rs 50 lakhs insurance: Know how to apply.

These schemes are primarily designed for employees of Central and State Governments, Public Sector Undertakings, Nationalized Banks, Government-aided Educational Institutions, Autonomous Bodies, Local Bodies, Cooperative Societies, and certain professionals (doctors, engineers, CAs, etc.) and employees of listed companies. Rural PLI is specifically for the rural populace.

Postal Life Insurance key features:

Eligibility:

The most crucial factor for PLI is your employment. You must belong to one of the following categories:

Central Government employees

State Government employees

Employees of Public Sector Undertakings (PSUs)

Employees of Nationalised Banks

Employees of Government-aided Educational Institutions

Employees of Autonomous Bodies

Employees of Local Bodies

Employees of Cooperative Societies

Certain professionals like Doctors, Engineers, Chartered Accountants, Management Consultants, Lawyers, Architects, etc.

Employees of companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

For Rural Postal Life Insurance (RPLI), the eligibility is broader, covering residents of rural areas.

Types of PLI Schemes (most of which offer up to Rs 50 Lakhs sum assured):

1.Whole Life Assurance (Suraksha):

Max Sum Assured: Rs 50 Lakhs.

Age: 19-55 years.

Benefit: Sum assured plus accrued bonus payable at age 80 or on earlier death to nominee/legal heir.

Features: Loan facility after 4 years, surrender after 3 years, can be converted to Endowment Assurance.

2. Endowment Assurance (Santosh):

Max Sum Assured: Rs 50 Lakhs.

Age: 19-55 years.

Benefit: Sum assured plus accrued bonus payable at a pre-determined maturity age (e.g., 35, 40, 45, 50, 55, 58, 60 years) or on earlier death to nominee/legal heir.

Features: Loan facility after 3 years, surrender after 3 years.

3. Convertible Whole Life Assurance (Suvidha):

Max Sum Assured: Rs 50 Lakhs.

Age: 19-50 years.

Benefit: Whole Life Assurance with an option to convert to Endowment Assurance after 5 years (not later than 6 years).

Features: Loan facility after 4 years, surrender after 3 years.

4. Anticipated Endowment Assurance (Sumangal):

Max Sum Assured: Rs 50 Lakhs.

Nature: Money-back policy, suitable for those who need periodic returns.

Benefit: Survival benefits paid periodically (e.g., 20% at specific intervals for 15 or 20-year terms). Full sum assured + bonus on death, irrespective of survival benefits already paid.

Age: 19-45 years (for 15-year term), 19-40 years (for 20-year term).

5. Joint Life Assurance (Yugal Suraksha):

Max Sum Assured: Rs 50 Lakhs.

Nature: Covers both spouses under a single premium. One spouse must be eligible for PLI.

Age: 21-45 years for both spouses, with the elder not exceeding 45.

Features: Loan facility after 3 years, surrender after 3 years.

6. Children Policy (Bal Jeevan Bima):

Max Sum Assured: Rs 3 Lakhs (or equal to parent’s sum assured, whichever is less).

Children’s Age: 5-20 years.

Policyholder (Parent) Age: Not more than 45 years.

Features: Maximum of two children can be covered. No premium payment required for children’s policy if the policyholder (parent) dies.

How to Get It:

1. Check Eligibility: First and foremost, confirm if you fall under the eligible categories mentioned above.

2. Visit a Post Office: You can visit any head post office or sub-post office that deals with PLI/RPLI.

3. Online Application (if available and facilitated): India Post has been working on digitalizing services. You might be able to initiate the application or at least download forms from the official India Post PLI website (pli.indiapost.gov.in). Look for the “Customer Portal” or “Online Payment” sections.

4. Collect Application Form: Obtain the relevant proposal form for the PLI/RPLI scheme you are interested in.

5. Fill the Form Accurately: Provide all required personal details, employment information, scheme choice, sum assured, nominee details, etc.

6. Gather Required Documents:

Proof of Identity (Aadhaar Card, PAN Card, Voter ID, Passport)

Proof of Address (Aadhaar Card, Utility Bills)

Proof of Age (Birth Certificate, School Certificate)

Proof of Employment/Eligibility (Employment ID card, Service Certificate, Latest Salary Slip, Appointment Letter, Certificate from Head of Department, etc.)

Passport-sized photographs

Bank account details for premium payments.

Medical examination may be required for certain policies or sum assured amounts.

7. Premium Payment: Pay your first premium. Premiums can usually be paid monthly, quarterly, half-yearly, or annually. Discounts are often offered for advance payments (e.g., 1% for 6 months, 2% for 12 months).

8. Submission: Submit the completed form and documents to the Post Office counter.

9. Policy Document: Once your application is processed and approved, you will receive your policy document.

Key Benefits of PLI/RPLI:

Government Backing: High security and reliability as it’s backed by the Government of India.

Low Premiums: Generally known for offering competitive and lower premium rates compared to private insurers.

Attractive Bonuses: PLI policies typically offer higher bonus rates, leading to better returns.

Tax Benefits: Premiums paid are eligible for deduction under Section 80C of the Income Tax Act.

Loan Facility: Most policies offer a loan facility after a certain period (e.g., 3 or 4 years).

Easy Claim Settlement: Known for a good claim settlement ratio and streamlined processes.

Flexibility: Options for premium payment frequency, policy conversion, and nomination changes.

It’s advisable to visit the nearest Post Office or the official India Post website (pli.indiapost.gov.in) for the most current information, specific premium rates for your age and chosen scheme, and any updated procedures.

Also Read: LIC Kanyadan Yojana: Pay just Rs 121 and get Rs 27 lakh for Daughter’s Education and Marriage