Post Office Life Insurance Plan: Sum Assured Up To Rs 50 Lakh; Who Can Take The Scheme, What Are The Loan Provisions? Explained

If you are looking for a dependable and cost-effective medium to secure your finances through life insurance plans then post office life insurance policies are a viable option for you. The post office is the oldest life insurer in the country providing coverage to citizens. Started on 1 February 1884, during the British period for the benefit of postal workers, its services were eventually extended to a wider range of people. Known as Postal Life Insurance (PLI), the insurance policy offers substantial returns at incredibly modest costs.

The Postal Life Insurance offers as many as 6 insurance policies and is managed by the Department of Posts under the Ministry of Communications. One of the insurance policies offered is Whole Life Assurance-Suraksha which gives life insurance cover to the policy holders. Continue reading to know more about the scheme,  what the benefits are, and who can avail of the facility.

The Whole Life Assurance-Suraksha coverage is available to everyone between the ages of 19 and 55. A minimum assured payment of Rs 20,000 and a maximum assured sum of Rs 50 lakh, along with a bonus, are provided to the policy bearer under this scheme. The amount goes to the policyholder's nominee or heir if they pass away in the meantime.

The policyholder is eligible to apply for a loan against the PLI after running it continuously for 4 years. After 3 years, the policyholder may surrender it if they are unable to run the policy for a long time. However, if they surrender the PLI before 5 years, they will not be eligible for the bonus. On surrendering the policy after 5 years, a proportionate bonus is paid on the sum assured.

The insured is also eligible for tax relief under this arrangement. Section 80C of the Income Tax Act allows for an exemption on the premium paid for the PLI.

In this plan, you can choose the payment option as per your convenience. You can choose to pay your premiums on a monthly, quarterly, half-yearly, and yearly basis. You can receive a 1% or 2% reduction on the premiums if you pay your payments in advance for 6 months or 12 months.

The policy could also be converted into Endowment Assurance Policy till the age of 59 years, provided the conversion date is not within one year of the last date of payment or the maturity date.

In addition, the policy could be transferred to any part of the country.

Employees of central and state governments, defence and para-military services, Public Sector Undertakings, banks, educational institutions, local bodies, professionals such as doctors, engineers, chartered accountants, MBAs, lawyers, etc., and employees of companies listed with the National Stock Exchange (NSE) / Bombay Stock Exchange (BSE) can avail the benefits of all the insurance policies run under PLI.

In addition to the authorized post office branches, the PLI policies could be purchased online by visiting the India Post website.