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Postal Life Insurance Scheme: Features, Benefits and Eligibility

Learn what Postal Life Insurance offers, who can apply, available policies, and how this government-backed life cover works

Written by : Knowledge Centre Team

2026-01-12

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7 minutes read

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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 worth it?

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

 

  • Central and state government employees, such as those working in defence and public sector undertakings and other government-aided bodies, can enjoy the benefits of Postal Life Insurance (PLI).
  • Eligible individuals go for PLIs because they not only offer high returns but also have pretty affordable premium rates.
  • There is not one but several PLI policies which you can buy as per your financial needs. Including Whole Life Assurance, Endowment Assurance, and Joint Life Assurance.
  • The tax deductions, premium discounts, nomination facilities, and loan options make these plans even more attractive.
  • You can easily transfer, revive, and make payments for the Postal Life Insurance scheme, and the payments are accepted via salary deductions, online payments, and post offices, too.

What is the Postal Life Insurance Scheme?

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, nationalised banks, etc.

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Features of Postal Life Insurance

Postal Life Insurance offers a blend of affordability, reliability, and government-backed security, making it a dependable protection and savings option. Here are some of its unique features: 

  • Nomination Facility: Policyholders can appoint a nominee to receive the policy proceeds, ensuring benefits reach the intended beneficiary without complications

  • Loan Facility: After completing the required policy tenure, a loan can be availed against the policy’s surrender value to meet financial needs

  • Policy Revival Option: Lapsed policies can be reactivated within the allowed revival period by paying pending premiums along with applicable interest

  • Duplicate Policy Document: If the original policy bond is lost or damaged, a duplicate copy can be obtained by submitting the necessary documents and paying the charges

  • Policy Conversion Flexibility: Certain postal life insurance policies allow conversion to another plan type, subject to eligibility conditions and insurer approval

  • Attractive Returns: Postal Life Insurance offers competitive bonus rates, which can significantly enhance the policy’s maturity value over tim

What are the Eligibility Criteria of Postal Life Insurance?

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:

Who is Eligible?

All the Employees of:

  • Central/State Government (This includes people hired on a contract basis)

  • Defence Services

  • Paramilitary Forces

  • Reserve Bank of India

  • Local Bodies

  • Autonomous Bodies under the Government

  • Nationalised Banks

  • Public Sector Undertakings

  • Government-assisted Educational Institutes

  • Government Universities

  • Employees of the listed companies of BSE and NSE

PLI Statistics: A Detailed Report

Year

Total Number of Policies Obtained in a FY

Sum Assured of all the policies (In ₹, crores)

Total Number of Policies Active at the End of the FY

Overall Sum Insured (In ₹, crores)

Total Income Acquired Through Premiums (In ₹, crores)

Corpus of Funds

2011-2012

4,82,423

13288.15

5006060

76591.33

3681.03

23010.55

2012-2013

4,54,053

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

trivia-img

Did You Know?

In 1894, PLI was the first modern insurance company to cover female employees in its insurance policies.

Source: India Post

Young Term Plan - 1.5 Crore

6 Types of Insurance Plans under Postal Life Insurance

There are six types of insurance plans offered under the Postal Life Insurance Scheme:

  • Whole Life Assurance (Suraksha): 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:

    1. Applicable age limit: 19-55 years.
    2. Assured Minimum Sum: ₹20,000
    3. Assured Maximum Sum: ₹50 Lakhs
    4. Loan facility: Available after 4 years
    5. Policy surrender: After 3 years

Recommended Read - Difference Between Life Insurance and Life Assurance

  • Endowment Assurance (Santosh): 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 insured of the insurant, the assured amount with bonus is paid to their nominee or legal heir.

    Other details:

    1. Applicable Age Limit: 19-55 years
    2. Assured Minimum Amount: ₹ 20,000
    3. Assured Maximum amount: ₹ 50 lakhs
    4. Loan Facility: After 3 years of completion
    5. Policy Surrender: After 3 years of completion

Learn how- increasing the sum assured in a term plan is your weapon against inflation.

  • Convertible Whole Life Assurance (Suvidha): This policy offers a whole life assurance cover with an option of switching to Endowment Assurance Policy after five years.

    Other details:

    1. Applicable Age Limit: 19-50 years
    2. Assured Minimum Amount: ₹20,000
    3. Assured Maximum Amount: ₹50 lakhs
    4. Loan Facility: After 4 years
    5. Policy Surrender: After 3 years

There are other term insurance plans offered by insurance companies that come 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.

  • Anticipated Endowment Assurance (Sumangal): 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:

    1. Policy Term: 15-20 years
    2. Applicable Age Limit for a Term Policy of 20 Years: 19 - 40 years
    3. Applicant Age Limit for Term Policy of 15 Years: 19 - 45 years
    4. Periodical Survival Benefits: 
      • 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.
  • Joint Life Assurance (Yugal Suraksha): This scheme is a joint-life endowment assurance that entails the eligibility of one of the spouses for PLI policies.

    Other details:

    1. It provides life cover for both spouses to the extent of an assured amount with accrued bonus.
    2. Assured Minimum Sum: ₹20,000
    3. Assured Maximum Sum: ₹50 Lakhs
    4. Age Limit of Spouses to be Applicable: 21 - 45 years
    5. Loan Facility: After 3 years
    6. In case of the death of a spouse or the main policyholder, death benefits are paid to either of the survivors.
  • Children Policy (Bal Jeevan Bima): This scheme provides insurance cover to the children of policyholders.

    Other details:

    1. Maximum Number of Children of Policyholder Eligible: 2
    2. Age Limit for Children to be Eligible: 5 - 20 years
    3. The age of the policyholder or parent should not exceed 45 years
    4. In case of death of the policyholder, no premium has to be paid for the Children's Policy

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.

iselect 360 smart term plan benefits

Postal Life Insurance Benefits

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 opting for PLI your perfect financial investment. 

  • Affordable Premiums: These policies have premiums that are comparatively lower than 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 iInsurance 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.

Postal Life Insurance vs. Other Life Insurance Policies

There are so many ways in which pPostal lLife iInsurance 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 the 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 Ssum Aassured

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.)

Postal Life Insurance Customer Guidelines

Before purchasing a Postal Life Insurance policy, it is important to understand the key rules, eligibility conditions, and service-related guidelines that apply to policyholders:

  • 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 with 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 by phone if they have any grievances or issues that need to be resolved. 

Conclusion

Life insurance is about making sure your family is taken care of, no matter what happens. Most of us worry about how our loved ones would manage if we weren’t around, but real peace of mind comes from planning instead of putting it off. By understanding your needs and choosing the right life insurance plan, you can protect your family’s lifestyle and future goals. Starting early and planning wisely can help you build a safety net your family can always rely on.

Glossary

  1. Nomination Facility: The nomination facility simplifies the claim settlement procedure for any deceased life insurance holders.
  2. Endowment Assurance: This is when a policyholder is assured of the sum until they attain a certain age of maturity.
  3. Whole Life Cover Option: This is a type of life insurance that offers coverage for the policyholder's entire lifetime.
  4. Sum Assured: The guaranteed amount paid to the nominee or policyholder as a death or maturity benefit under a PLI policy
  5. Bonus: An additional amount added to the policy benefits, declared periodically, enhancing the overall returns of PLI plans
glossary-img
Uncertain About Insurance

FAQs

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.

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 PLI accidental benefit provides additional financial support if the policyholder dies due to an accident. In such cases, the nominee receives the basic sum assured along with the applicable accidental cover amount. Some Postal Life Insurance schemes may also extend benefits for permanent disability, depending on plan details selected at the time of purchase.

Yes, Postal Life Insurance is different from regular post office insurance schemes. PLI is primarily designed for eligible government and PSU employees, offering higher coverage at lower premiums. In contrast, post office insurance schemes (such as Rural Postal Life Insurance) are open to the general public and function as broader India postal insurance options.

No, Postal Life Insurance schemes do not offer pure postal term insurance plans as private insurers do. PLI mainly focuses on traditional endowment, whole life, and money-back policies. Those looking specifically for post office term insurance may need to explore private life insurers instead, as term-based coverage is not part of the post office PLI scheme structure.

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.

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