Postal Life Insurance (PLI) is the oldest insurance provider in the country that was launched under the Queen Empress of India. At that time this scheme was introduced as a welfare scheme for the benefit of employees of Postal service. Later this scheme was extended to the employees of Telegraph department in 1884. During its inception, the maximum limit of insurance was Rs.4,000, which is currently Rs. 50 lakhs. This scheme is convenient enough and offers you coverage at quite a low premium rate for personal investment.
What is Postal Life Insurance?
Postal Life Insurance Schemes are popular because they offer high returns on premium paid for a Life Insurance cover. Rs. 50 Lakhs is the maximum sum assured offered under this scheme. This insurance policy is formulated by the Indian Government for the employees of Central and State Public Sector Enterprises, Central and State Governments, Universities, Local Bodies, Government Aided Educational Institutions, Cooperative Societies, Government aided Educational Institutions, Autonomous Bodies, Joint Business Ventures that have 10% Government or PSU stake, and several others. Postal Life Insurance also manages as group insurance scheme, available for “Gramin Dak Sevaks”, which implies for Extra Departmental Employees, of the Postal Department.
Benefits of taking a PLI
Benefits and leverages that are offered under the Postal Life Insurance scheme are:
• The policyholders can avail Income tax exemption under Sec. 88 under Income Tax Act.
• Extra facilities that this policy offers options such as –Loan, Assignment, Surrender, Conversion, and Paid up Value.
• The policyholders have the leverage to transfer the policy within any Circle in India, and this is not at any additional charges.
• In order to keep a record of the premium payment as well as transactions of loans, there is a passbook facility.
• The policy offers different modes such as annual, half-yearly and monthly basis so as to pay the premium. In the case of due payment, the policyholder is eligible to pay the dues on any working day.
• If you have paid the premium of 6 months in advance, then the policyholder is eligible to avail a discount on premium worth 1% of the value.
• In the case of advance premium paid for a time period of twelve months, the policyholder can get a discount of worth 2% of the value of the premium paid.
• This plan offers Nomination facility.
• The claims settlement process of this policy is quite quick and easy as the scheme has a centralized accounting facility.
What are the Eligibility criteria of Postal Life Insurance Policy?
Employees of the following organizations that are enumerated below can get a Postal Life Insurance policy:
• Defense Services
• Central Government
• State Government
• Financial Institutions
• Autonomous Bodies
• Para Military forces
• Reserve Bank of India
• Local Bodies
• Public Sector Undertakings
• Government-aided Educational Institutions
• Nationalized Banks
• Contract based employees of Central/ State Government where they are allowed to extend the contract.
• Employees of all scheduled Commercial Banks
• Extra Departmental Employees in the Postal department
• People who work in educational institutes accredited by reputed organizations such as National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India etc.
• Those who work in Credit Co-operative Societies, as well as other Co-operative Societies that are registered with the Indian Government, mentioned in Co-operative Societies Act.
These can be and partly or fully funded by State Government, Central Government, RBI, Nationalized Banks, SBI, NABARD, etc.