Postal Life Insurance for Government Employees

The popularity of life insurance has been constantly increasing. Deemed as one of the oldest life insurance schemes, Postal Life Insurance was introduced in 1884 and since then it has become a popular choice amongst policyholders from all over. The Postal Life Insurance Scheme is managed by the India Post which is under the Government of India. In the section below, read out all about Postal Life Insurance for Government Employees.

Overview of Postal Life Insurance for Government Employees

Postal Life Insurance, administered by India Post, is a government-backed insurance scheme designed to cater specifically to the needs of government employees. This scheme was initiated in 1884 and it was in 1894 that it also extended its life insurance coverage for female employees. Gradually, the scheme became more popular and extended to all State Government, Central Government Employees, Military Personeels, Chartered Accountants, Doctors, Engineers, and more. 

Eligibility Criteria of Postal Life Insurance (PLI)

The eligibility criteria of the Postal Life Insurance scheme are as follows:

• Eligible Individuals: Employees of Central and State Government Employees, Local Bodies, Reserve Bank of India, Nationalised Banks, Deemed Universities, Financial Institutions, Department of Posts. Additionally, doctors, lawyers, engineers, and other professionals are also eligible to buy Postal Life Insurance.

• Entry Age: The minimum entry age of most of the Postal Life Insurance Scheme is 19 years and the maximum entry age is 55 years except for Bal Jeevan Bima.

• Minimum sum assured: Rs. 20,000

• Maximum sum assured: Rs. 50 lakhs

• Types of Postal Life Insurance Scheme: Whole Life Assurance, Convertible Whole Life Assurance, Endowment Assurance, Joint Life Assurance, Anticipated Endowment Assurance, Bal Jeevan Bima

Features of Postal Life Insurance

Listed below are some of the salient features of the Postal Life Insurance scheme:

• Affordable Premiums: One of the most promising features of Postal Life Insurance or PLI is the affordability that it offers. The different types of Postal Life Insurance plans are extremely affordable. 
• Variety of Plans: Postal Life Insurance offers a diverse range of insurance plans, allowing you to choose one that aligns with your specific requirements. Whether it's an endowment plan, whole life insurance, or a convertible whole life plan, the Postal Life Insurance scheme caters to various life insurance needs.
• Hassle-free Process: Postal Life Insurance schemes or PLI ensure a hassle-free application process with minimal documentation. This is particularly advantageous for government employees who may have a busy schedule, as it allows for a quick and straightforward enrollment process.

Benefits of Postal Life Insurance

Some of the reasons why you should choose to buy Postal Life Insurance plans are as follows:

• Tax Benefits: With your Postal Life Insurance policy, you can enjoy tax savings as specified under the Income Tax Act of 1961. The premiums paid and the maturity amount received are both eligible for tax deductions, providing an additional benefit for Indian taxpayers.
• Family Protection: PLI goes beyond being just an individual insurance policy as it serves as a comprehensive family protection plan. In the unfortunate event of the policyholder's demise, the family receives the sum assured along with bonuses, providing financial stability during challenging times.
• Loan Facilities: Policyholders have the option to avail loans against their PLI policies, offering a financial safety net during emergencies or unexpected expenses. This feature enhances the liquidity of the policy and adds an extra layer of financial flexibility for those who have bought Postal Life Insurance schemes.

• Policy Conversion: You can convert your whole life assurance policy to an endowment plan depending on the policy terms and conditions.

• Flexible Premium Payment Mode: With your Postal Life Insurance policy, you can also enjoy a flexible premium payment mode. You can pay premiums monthly, annually, semi-annual, or every month. 

Types of Postal Life Insurance Schemes

Some of the different types of Postal Life Insurance schemes that you can consider buying are as follows:

• Suraksha - Whole Life Assurance

This policy pays the assured amount to the nominees in case the policyholder meets an unfortunate death or attains 80 years of age (whichever takes place early).

• Suvidha - Convertible Whole Life Assurance

This is a convertible life insurance policy that lets you convert your plan into an endowment assurance policy.

• Santosh - Endowment Assurance

This policy provides the benefit of a sum assured and accrued bonus till the policyholder attains the pre-determined maturity age of 35,40,45,50,55,58 & 60 years of age.

• Yugal Suraksha - Joint Life Assurance

It is a type of joint life insurance plan that can be availed by both spouses.

• Sumangal - Anticipated Endowment Assurance

It is a money-back policy that provides both survival and death benefits along with regular payouts.

• Bal Jeevan Bima - Children Policy

This is a type of life insurance policy specially designed for children.

Take Away

In conclusion, Postal Life Insurance is one of the most affordable life insurance options backed by the Government of India. There are different life insurance options available under this scheme which offers flexibility to the policyholders to choose a suitable plan.

FAQs

• Who looks after Postal Life Insurance plans?

Indian Post under the Government of India monitors the Postal Life Insurance plans.

• Can I get a child policy under the Postal Life Insurance scheme?

Yes, there is a child specific plan offered under the Postal Life Insurance scheme.

• When was the Postal Life Insurance scheme introduced?

The Postal Life Insurance scheme was introduced in the year 1884.