Considering life’s uncertainty, your family’s future is your biggest concern. Getting life insurance is one of the best decisions. However, it is rare to find a scheme that gives you high returns at low premium rates. Moreover, even if it promises you these benefits, is it worthy enough?
The Postal Life Insurance Policy (PLI) gives you all the mentioned benefits with the trust of the Indian Government. It is one of the oldest insurance products in India.
Key Takeaways
|
Postal Life Insurance is an insurance scheme that the Government of India offers to Central and State Governments, public sector undertakings, educational institutions aided by the Government, nationalized banks, etc.
PLI’s best feature is that it fetches good returns at extremely low premium limits.
Postal Life Insurance allows many types of Government employees and other people working in public institutions. The Postal Life Insurance (PLI Scheme) provides coverage for the following:
Eligible Persons | All the Employees of:
|
Sorry! No records Found
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Year | Total Number of Policies Obtained in a Financial Year | Sum Assured of all the policies (In ₹, crores) | Total Number of Policies Active at the End of the Financial Year | Overall Sum Insured (In ₹, crores) | Total Income Acquired Through Premiums (In ₹, crores) | Corpus of Funds |
2011-2012 | 482423 | 13288.15 | 5006060 | 76591.33 | 3681.03 | 23010.55 |
2012-2013 | 454053 | 14695.59 | 5219326 | 88896.46 | 4557.29 | 26131.34 |
2013-2014 | 433182 | 16129.39 | 5406093 | 102276.08 | 5352.01 | 32716.26 |
2014-2015 | 324022 | 14276.91 | 5242257 | 109106.93 | 5963.46 | 39536.33 |
2015-2016 | 198606 | 9644.97 | 4930838 | 109982.09 | 6657.03 | 46302.72 |
2016-2017 | 213323 | 11096.67 | 4680013 | 113084.81 | 7233.89 | 55058.61 |
In 1894, PLI was the first modern insurance company to cover female employees in their insurance policies.
Source: India Post
There are six types of insurance plans offered under Postal Life Insurance Scheme offers:
Under this scheme, the assured amount with the accumulated bonus is either paid to the insured after they reach the age of 80 or to the nominee or legal heir following the insured’s death -- whichever comes first.
Other details:
Recommended Read - Difference Between Life Insurance and Life Assurance
Under this scheme, the assured sum with the accrued bonus is paid to the proponent after reaching the pre-decided age of maturity.
In the event of the death of the insurant, the assured amount with bonus is paid to their nominee or legal heir.
Other details:
Learn how increasing sum assured in a term plan is your weapon against inflation.
This policy offers a whole life assurance cover with an option of switching to Endowment Assurance Policy after five years.
Other details:
There are other term insurance plans offered by insurance companies that comes with whole life cover option. If you opt for a whole life cover, you will be insured till you turn 99.
Learn more about whole life cover option.
This scheme is suitable for people who require periodical returns. It is essentially a money-back policy with an assured maximum amount of Rs. 50 Lakhs. It offers periodic payment of survival benefits. However, these payments will not be considered in case of unprecedented death of the insurant. In that event, the full assured amount and accrued bonus will be paid to the insurant’s nominee or legal heir.
Other details:
For a 15 years Policy - 20% of the assured sum is paid after 6, 9, and 12 years. 40% of the assured sum with bonus is paid on maturity.
For a 20 years Policy - 20% of the assured sum is paid after 8 years, 12 years, and 16 years. 40% of the assured sum with bonus is paid on maturity.
This scheme is a joint-life endowment assurance that entails the eligibility of one of the spouses for PLI policies.
Other details:
This scheme provides insurance cover to the children of policyholders.
Other details:
The PLI has shown appreciable growth in the last decade. Policyholders who are looking for a smart insurance scheme are choosing PLI for its numerous benefits.
Apart from PLI, many insurance schemes yield numerous benefits for shareholders. Canara HSBC Life Insurance has insurance plans specifically tailored for you. Some of them are as follows:
This is a highly flexible plan that protects you from the uncertainties of life.
Some of its benefits are as follows:
Utmost care must be taken while applying for any insurance scheme. Protecting your loved ones from financial calamities is, after all, your biggest priority.
Having a life insurance policy during these trying times has become an extreme necessity. With COVID-19 spreading like a wildfire in the country, it is wise to be protected financially to secure the future of your loved ones. We often think about our family and how they will manage their lifestyle if something happens to us. So, rather than leaving things to chance and procrastinate – its better if you plan and research about the right life insurance plans that can be beneficial for you.
There are a number of benefits of the postal life insurance that you can avail yourself of; that is what makes it a preferred choice of the eligible government employees. Here are some key advantages of why opting for PLI can be your perfect financial investment.
Affordable Premiums: These policies have premiums trates that are comparatively lower to any other plan, while keeping the coverage high.
Tax Benefits: Everybody wants to reduce their tax liability, and this can be another way to do so. Its premiums are tax-deductible under Section 80C of the Income Tax Act.
Guaranteed Returns: The policies have a guaranteed maturity benefit and several bonuses, offering maximum financial security.
Loan Facility: Another advantage of this scheme is that you can get a loan against it three to four years after it is completed (varies as per your plan).
Flexibility with Premium Payment: You can pay via several different modes, including salary deductions, online banking and even at the post offices.
Nomination and Transfer Facility: If you plan to relocate to any other part of the country, the transfer facility is available. Moreover, you can also nominate a person to take charge of your account after your demise.
Policy Revival: In case your policy has lapsed, you can revive it by clearing all the pending premiums and paying all the applicable interest charges.
Benefit | Details |
Low Premium Rates | It offers an affordable option for the policyholders to achieve higher coverage at low premium costs. |
Tax Exemptions | Policyholders can enjoy the benefits of tax deductions under Section 80C of the Income Tax Act. |
Bonus and Maturity Benefits | The returns of the postal life insurance scheme are guaranteed with accrued bonuses that are compounded annually. |
Loan Option | After the completion of three to four of the plans, you can avail yourself of this option. |
Easy Payment Options | Several payment choices: Net Banking, at the post office, or via salary deductions. |
Policy Revival | Payment of pending premiums can lead to a revival of the policy after the lapse. (Additional interest may be applicable.) |
Transfer Facility | Relocation does not affect the plan and coverage, as you can transfer it across India. |
There are so many ways in which postal life insurance is different from other life insurances, from cost-effectiveness and features to the criteria for eligibility. Check out the comparative overview right below:
Features | Postal Life Insurance | Other Life Insurance Policies |
Eligibility | Limited to government employees and those working in PSU | Available for all individuals (with some minor limitations depending on the plan and insurer) |
Premium Rates | The low premium is because of the government backing | The premium can vary and is usually higher |
Sum Assured | There is a cap of ₹50 Lakhs on the maximum limit of the sum assured | The sum assured for other life insurances is usually higher |
Can it be transferred? | Yes, the transfer is allowed all across India | Depends on the insurer |
Loan facility | You can avail yourself of a loan against this scheme after 3 to 4 years | Loan facilities depend on the terms of the policy |
Tax Benefits | Available (Section 80C of the Income Tax) | Available (Section 80C of the Income Tax) |
Bonuses and Maturity Benefits | A maturity bonus is assured | Depends on what type of policy you hold |
Policy Revival | Possible, certain conditions may affect it | Possible, depending on the terms of the policy |
Market-Linked Plans | N/A | Available (ULIPs, etc.) |
The choice between PLI and other insurance solely depends on what you are looking for and whether it aligns with your financial planning or not. If you seek security and affordability and are eligible, PLI might work for you. If you are looking for flexibility, start looking for other insurance plans. This might help you understand the concept better.
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
There are some important postal life insurance plan details and guidelines for anyone who invests in a Postal Life Insurance Policy:
The policy number will be present on the policy documents. This is needed for future reference or to identify the policy and make any necessary transactions.
The policy bond is very important and needs to be stored securely. These documents are required when a policyholder needs to settle their claims. If they misplace or damage their policy bonds, the insurance company will provide them with a replacement copy.
PLIs are a policy where the premiums can be deducted from an insured’s pay. With consent from their employer, they can directly pay for their insurance premiums. The premium amount can be deducted from their salary, which will be reflected in the salary slip.
A Postal Life Insurance policy can be transferred if an insured receives a job transfer.
Premiums for a PLI can be paid by either cash or cheque. Payment facilities include online banking, over-the-counter service at any post office, an Electronic Clearance System, and more.
Policyholders must ensure that they provide accurate information concerning address, phone number, and more. This is essential when they make a claim, as the claim cheque will be sent to the address listed in the insurance documents. Policyholders should remember to update their insurance forms about their new address.
If a policy has been discontinued and has not been revived during the revival period, the policyholder can request the Chief Postmaster General to revive the policy. This request makes them liable to pay all the pending premiums with an added interest. They will also have to submit a report from a medical examiner certifying that the policyholder is in good health to the insurer.
If a policy has been in effect for more than 3 years, insured people can avail themselves of a loan against the policy.
Policyholders can contact any PLI officials through a letter or the phone if they have any grievances or issues that need to be resolved.
Having a life insurance policy during these trying times has become an extreme necessity. It is wise to be protected financially to secure the future of entire families. We often think about our family and how they will manage their lifestyle if something happens to us. So, rather than leaving things to chance and procrastinating – it's better to plan and research the right life insurance plans that can be beneficial for a long time.
Nomination Facility: The nomination facility simplifies the claim settlement procedure for any deceased life insurance holders.
Endowment Assurance: This is when a policyholder is assured of the sum until they attain a certain age of maturity.
Whole Life Cover Option: This is a type of life insurance that offers coverage for the policyholder's entire lifetime.
Postal Life Insurance is run and managed by the Post Office. Unlike other insurance providers, PLI usually only offers traditional policies and does not offer term insurance or ULIPs.
To be eligible for Postal Life Insurance (PLI) in India, individuals must be employees of Central and State Governments, public sector undertakings, universities, government-aided educational institutions, local bodies, and nationalised banks. Additionally, employees of defence services and paramilitary forces can also avail of PLI.
Medical examination is not required for a policy up to ₹5 lakh in PLI for a policyholder younger than 40 years and up to ₹1 lakh in RPLI for a policyholder younger than 35 years.
The maximum insurance amount for a PLI policy is ₹50 lakhs.
Yes, PLI is a tax-exempt insurance provider. Insurance premiums you pay under PLI policies could be deducted under Section 80C of the Income Tax Act.
The Postal Life Insurance Scheme was introduced on February 1st, 1884.
The minimum age limit for entry is 19 years old, and the maximum age for entry is 55 years.
Yes, you can pay Postal Life Insurance premiums online through the PLI website.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
