Postal Life Insurance Scheme in India: Coverage and Benefits

2024-08-02

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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 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.

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, nationalized banks, etc.

PLI’s best feature is that it fetches good returns at extremely low premium limits.

Features of Postal Life Insurance

The scheme provides tax exemption to the insured under Sec. 88 of Income Tax Act.
If you pay the premium in advance for a policy period of 6 months, you are eligible for a discount on a premium worth 1% of the value.
If you pay the premium in advance for a policy period of 12 months, you are eligible for a discount on a premium worth 2% of the value.
A nomination facility is provided.

6 Types of Insurance Plans under Postal Life Insurance

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

1. 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:

Applicable age limit: 19-55 years.
Assured Minimum Sum: Rs. 20,000
Assured Maximum Sum: Rs. 50 Lakhs
Loan facility: available after 4 years of completion
Policy surrender: after 3 years of completion

2. 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 death of the insurant, the assured amount with bonus is paid to their nominee or legal heir.

Other details:

Applicable age limit: 19-55 years
Assured Minimum Amount: ₹ 20,000
Assured Maximum amount: ₹ 50 lakhs
Loan facility: after 3 years of completion
Policy Surrender: after 3 years of completion

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

3. 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:

Applicable Age Limit: 19-50 years
Assured Minimum Amount: ₹ 20,000
Assured Maximum Amount: ₹ 50 lakhs
Loan facility: after 4 years of completion
Policy Surrender: after 3 years of completion

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.

4. 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:

Policy term: 15-20 years
Applicable age limit for a term policy of 20 years: 19 - 40 years
Applicant age limit for term policy of 15 years: 19 - 45 years
Periodical survival benefits are available as the following:

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.

5. 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:

It provides life cover for both spouses to the extent of an assured amount with accrued bonus.
Assured Minimum Sum: Rs. 20,000
Assured Maximum Sum: Rs. 50 Lakhs
Age limit of spouses to be applicable: 21 - 45 years
Loan facility: After 3 years of completion
In case of the death of a spouse or the main policyholder, death benefits are paid to either of the survivors.

6. Children Policy (Bal Jeevan Bima)

This scheme provides insurance cover to the children of policyholders.

Other details:

Maximum number of children of policyholder eligible: 2
Age limit for children to be eligible: 5 - 20 years
The age of the policyholder or parent should not exceed 45 years.
In case of death of the policyholder, no premium has to be paid for the Children 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. Canara HSBC Life Insurance has insurance plans specifically tailored for you. Some of them are as follows:

1. Invest 4G Plan

The Invest 4G plan under Canara HSBC Life Insurance is an insurance plan with the following benefits:

The scheme ensures stress-free living through its guaranteed regular income plan.
It has the option of limited premium payments.
The scheme also offers assured loyalty additions.

2. iSelect Smart360 Term Plan

This is a highly flexible plan that protects you from the uncertainties of life.

Some of its benefits are as follows:

Availability of life cover at affordable prices.
Advantage of aligning the plan to suit your needs.
Freedom to choose between limited time cover and life cover.
Option for adding a spouse to the same insurance policy.

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.

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