Postal Life Insurance: Features, Eligibility, Types, Benefits, and More
- PRITI SIRDESHMUKH
- Sep 22
- 10 min read
Updated: Sep 29
Many people prioritise giving their loved ones financial security, and life insurance is a useful tool to guarantee this. Postal life insurance is one of the nation's oldest insurance products, having been established in 1884. The Government of India's Department of Posts oversees the program now, making it a reliable option for people who take it up. The insurance policy, which is well-known for being economical, provides higher returns at lower prices.
Table of Contents
What is the Postal Life Insurance (PLO) Scheme?
The Government of India's Department of Posts offers a life insurance program called Postal Life Insurance (PLI). It was first introduced in 1884 for Post Office workers, but it has since grown to include a variety of qualified groups, such as government workers, PSU employees, and professionals from authorised private businesses. Long-term savings and insurance coverage are combined in a postal life insurance plan. In the event of death of the insured person, it ensures financial security for the family. If the insured lives out the duration of the insurance, it also pays out maturity benefits. The government-backed programs are renowned for their dependable returns and affordable premiums.
Features of Postal Life Insurance
Postal Life Insurance (PLI) policies are renowned for their government-backed security, excellent returns, and affordable premiums. The following are the main characteristics of a postal life insurance plan that make it a trustworthy choice for life insurance:
Low Premiums: PLI is perfect for people on salaries because premiums are reasonable and set according to policy type, age, and sum assured.
High Bonus Rates: Among life insurance companies in India, PLI provides some of the highest bonus rates, guaranteeing policyholders higher profits.
Loan Facility: Depending on the plan type, policyholders may be eligible for loans three to four years after obtaining certain plans.
Nomination & Policy Transfer: If you relocate within India, you can designate a beneficiary and even transfer the policy.
Conversion Option: Within a certain amount of time, certain policies, such as Whole Life Assurance, can be changed to Endowment Assurance.
Duplicate Bond Issuance: In the event of damage, loss, or misplacement, a duplicate policy document may be issued.
Online Access: Policyholders can register, pay premiums and check the status of their policies using the India Post portal or IPPB app when they use Postal Life Insurance's online services.
Eligibility Criteria for Postal Life Insurance
The employees of the following organisations are eligible for PLI schemes:
Central and state government organisations
Department of Posts
Defence personnel
Paramilitary forces.
Banks
Public Sector Undertakings (PSUs)
Local bodies
Educational institutions
Local bodies.
Professionals, such as doctors, engineers, lawyers, chartered accountants, MBAs, etc.
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) listed companies.
Types of Postal Life Insurance Schemes
Here are different types of PLI schemes:
Whole Life Assurance/Suraksha Scheme
Minimum age for application: 19 years
Maximum age for application: 55 years
Minimum Sum Assured: Rs. 20,000
Maximum Sum Assured: Rs. 50 lakhs
Eligibility for bonus: After 5 years
Loan facility: After 4 years
Surrender period: After 3 years
Premium payment age options: 55/58/60 years
Endowment Assurance Policy Conversion: Permissible up to 59 years for the insured person
Convertible Whole Life Assurance/Suvidha Scheme
Minimum age for application: 19 years
Maximum age for application: 55 years
Minimum Sum Assured: Rs. 20,000
Maximum Sum Assured: Rs. 50 lakhs
Eligibility for bonus: After completing 5 years
Loan facility: After 4 years
Surrender period: After 3 years
Endowment Assurance Policy Conversion: After 5 years but before 6 years.
Endowment Assurance/Santosh Scheme
Minimum age for application: 19 years
Maximum age for application: 55 years
Minimum and maximum sum assured: Rs. 20,000.
Maximum sum assured: Rs. 50 lakhs
Eligibility for bonus: Only after completing 5 years
Loan facility: After 3 years
Surrender period: After 3 years
Anticipated Endowment Assurance/Sumangal Scheme
Term of policy: 15 and 20 years.
Minimum age for application
19 years for a 20-year term policy
19 years for a 15-year term policy
Maximum age for application
40 years for a 20-year term policy
45 years for a 15-year term policy
Survival benefits paid periodically:
15-year policy: 20% after 6, 9 and 12 years are completed and 40% with accrued bonus on policy maturity.
20-year policy: 20% after 8, 12 and 16 years are completed and 40% with accrued bonus on policy maturity.
Joint Life Assurance/Yugal Suraksha Scheme
Minimum age of both spouses: 21 years
Maximum age of both spouses: 45 years
Minimum and maximum sum assured: Rs. 20,000.
Maximum sum assured: Rs. 50 lakhs
Minimum policy term: 5 years
Maximum policy term: 20 years
Loan facility: After 3 years.
Eligibility for bonus: After completing 5 years
Surrender facility: After 3 years.
Children Policy/Bal Jeevan Bima
Minimum age of children: 5 years
Maximum age of children: 20 years
Maximum age of a parent/policyholder: 45 years.
Maximum sum assured: Rs. 3 lakhs or sum assured of the parent (whichever is less)
Loan facility: No loan allowed
Surrender facility: No surrender facility allowed
The child should be healthy, though no medical examination is required
Benefits of Postal Life Insurance
A number of advantages make Postal Life Insurance (PLI) a reliable and affordable choice of life insurance:
High Returns, Low Premiums: PLI plans provide some of the best bonus rates available in the life insurance market for relatively low premiums.
Option to Convert Policy: Some plans, like Convertible Whole Life Assurance, permit conversion to Endowment Assurance within a predetermined window of time.
Duplicate Policy Bond: Upon request, a duplicate policy bond can be readily issued in the event that the original is misplaced or destroyed.
Tax Benefits: Section 80C of the Income Tax Act allows for the deduction of premiums paid under PLI plans. Under Section 10(10D), maturity funds may be tax-free under specific circumstances. Nomination & Alteration: Throughout the duration of the policy, nominees may be added or modified.
Portability throughout India: If a policyholder moves for a job, their PLI coverage is transferable throughout India.
Loan Facility: Following a minimum lock-in term of three years for endowment-type policies and four years for whole life policies, policyholders are eligible to receive loans.
Flexibility in Premium Payment: Standing Instructions, cash, checks, and the IPPB app can all be used to pay premiums.
Postal Life Insurance Scheme Bonus
While the bonus on these schemes may change every year, the following table represents the recent data:
Postal Life Insurance Plan
| Bonus Rate as per the PLI Scheme
|
Whole Life Assurance/Suraksha Scheme | Rs. 76 per 1000 Sum Assured (SA) annually |
Convertible Whole Life Assurance/ Suvidha Scheme | Rs. 76 per 1000 SA annually (if Whole Life Insurance is not converted to Endowment Assurance). A bonus of endowment assurance shall be paid during conversion. |
Endowment Assurance/Santosh Scheme | Rs. 52 per 1000 SA annually |
Anticipated Endowment Assurance/Sumangal Scheme | Rs. 48 per 1000 SA annually |
Joint Life Assurance/Yugal Suraksha Scheme | Rs. 52 per 1000 SA annually |
Children Policy/Bal Jeevan Bima | Rs. 52 per 1000 SA annually |
Steps for Postal Life Insurance Login
You must first register on India Post's Customer Portal as a new member of the Postal Life Insurance program. The following is a detailed guide to self-registration:
Step 1: Go to India Post's official website.
Step 2: After clicking "Register," choose "Retail."
Step 3: After entering the required information, click "Register."
Step 4: A link to activate your account will then be sent to the email address you registered.
Step 5: To activate the account, click the activation link that was emailed to you 48 hours in advance.
To issue a new Postal Life Insurance policy after completing the registration process, you must log into your account. To log in for the first time, you need to do the following steps:
Step 1: Go to the PLI's official website.
Step 2: If this is your first time using the site, click "Generate Customer ID".
Step 3: In accordance with the policy, provide your date of birth, sum assured, and policy number.
Step 4: Return to the homepage after the Customer ID has been generated.
Step 5: Choose "Retail Login" after clicking "Login".
Step 6: Click "Forgot Password" after entering your Customer ID to create a new one.
Step 7: Your registered mobile number will receive the completed OTP verification.
Step 8: Create a new password and use your customer ID and password to log in.
Steps to Download Postal Life Insurance Forms
The Postal Life Insurance plan application form is available both online and offline. To download the form online, follow these steps:
Step 1: Go to India Post's official customer portal.
Step 2: Go to "Miscellaneous" next. Select "Download Forms and Documents.”
Step 3: Find the PLI Proposal Form (or, for rural insurance, the RPLI Proposal Form) and click on it. Other relevant forms are also available here.
Step 4: Fill out the CAPITAL letters and attach the necessary papers after downloading the PDF.
Step 5: As directed, upload the completed form and supporting documentation to the portal or deliver them to your post office.
Postal Life Insurance Online Payment Options
The following options can be used:
DoP Internet Banking
You can use the online portal to pay PLI premiums if you have an account with the Post Office Savings Bank (POSB). You should also have enabled DoP internet banking.
Step 1: Open your DoP eBanking account and log in.
Step 2: Choose "Service Request" under "General Services." Select "PLI Renewal Premium Payment."
Step 3: To safely finish the payment, enter your insurance information and adhere to the instructions.
IPPB Mobile App
The India Post Payments Bank (IPPB) mobile app makes it simple to pay PLI premiums.
Step 1: Install the IPPB app after downloading it from the Apple App Store or Google Play Store.
Step 2: Enter your MPIN and registered mobile number to log in.
Step 3: Click on "Services" and choose "PLI/RPLI Premium Payment".
Step 4: Verify the information, enter your policy number, and then pay.
Step 5: Additionally, you have the option to have Standing Instructions (SI) automatically deduct premiums on the seventh, twelfth, or seventeenth of every month.
Net Banking/Credit or Debit Card
Direct premium payments can also be made via net banking or debit/credit cards.
Step 1: Go to the Customer Portal for PLI.
Step 2: Proceed to the Premium Payment area after logging into your account.
Step 3: Select between using a credit card, debit card, or net banking as your payment option.
Step 4: Use a safe 3D authentication gateway to finish the payment.
Common Service Centre
Any authorised Common Service Centre (CSC) in India is another location where premiums can be paid in person.
Step 1: Put your PLI insurance number on your way to the closest CSC.
Step 2: After confirming your information, the CSC operator will help you pay the premium.
Step 3: Following a successful payment, a digital receipt will be created.
You can also make the premium payment offline via cheque or demand draft by visiting a Department of Posts branch.
How to Find Postal Life Insurance Policy Status
PLI Customer Portal: Go to the PLI's official website. Enter your password and customer ID to log in. To find out the status of your policy, go to the "Proposal Track" section under "Purchase a Policy".
Use the Proposal Number (No Login Required): Additionally, you can visit the Proposal Status Tracking Page and use your proposal number to directly monitor the status of your PLI policy. Just click "Check Status" after entering your proposal number.
Contact by phone: To find out the status of your insurance, you can contact the toll-free numbers: 1800‑180‑5232/155232. Additionally, their landline support number is 011-24673177.
Postal Life Insurance Customer Guidelines
The following are essential rules that all Postal Life Insurance policyholders should abide by in order to guarantee seamless policy administration and prevent service interruptions:
Safeguard the Policy Bond: An essential document needed for service requests and claims is the original policy bond. Keep it safe and let your family know where it is.
Make On-Time Premium Payments: For the coverage to remain active, premiums must be paid on a regular basis. Policy lapse and benefit loss may result from missing payments.
Know the PLI Number: Keep in mind that each PLI bond has a 13-digit policy number that is specific to it. In any correspondence or online services, make a note of it for future reference.
Register Email & Mobile Number: Make sure your email address and current mobile number are connected to your insurance for online access, alerts, and OTPs. If necessary, update these details by going to the post office that is closest to you.
Revise the Nominee's Information: Assign a nominee to your insurance at all times. To guarantee a seamless claim payment, you can add or modify nominees at any point throughout the policy's duration.
Facility for Policy Transfer: You can simply transfer your PLI policy to the new jurisdiction without compromising coverage if you are transferred to a different part of India.
Conclusion
The Government of India's Postal Life Insurance (PLI) policies offer professionals and members of the general public a reliable means of ensuring the financial security of their loved ones. PLI offers financing capabilities in addition to life insurance, enabling policyholders to access funds when needed. To make informed decisions, you must be aware of the terms and conditions related to PLI loans, even if the process is straightforward.
Frequently Asked Questions
Is Postal Life Insurance beneficial?
Because of its inexpensive premiums, high bonus rates, and guaranteed returns supported by the Indian government, PLI is quite advantageous for qualified persons. Additionally, it provides policy portability (the option to move the policy to a different place within India), financing facilities, and nomination flexibility.
Which PLI scheme is best?
The ideal PLI plan is determined by a person's age, coverage requirements, and financial objectives. Every plan has different advantages in terms of survival benefits, premium terms, and maturity returns. Before making a decision, it is advisable to compare features and suitability.
Is PLI better than FD?
Particularly because of its high annual incentive rates and tax advantages under Sections 80C and 10(10D), PLI can provide higher returns than Fixed Deposits (FDs). However, FDs offer greater liquidity and are appropriate for short-term objectives, whereas PLI necessitates long-term commitment.
Is PLI better than LIC?
For comparable coverage, Postal Life Insurance (PLI) has cheaper premiums and greater bonus rates than LIC. PLI is limited to certain qualified groups in terms of eligibility. On the other hand, LIC offers a greater range of products and is accessible to the general public.
How to claim Postal Life Insurance after maturity?
Bring your policy bond, identification, and a completed maturity claim form to the post office that is closest to you in order to make a PLI claim once it has matured. Following verification, the claim is processed, and your bank account is credited with the maturity amount plus any earned bonuses.
Is the Postal Life Insurance maturity amount taxable?
If the policy satisfies the required premium-to-sum assured ratio requirements, the maturity amount paid from Postal Life Insurance is tax-free under Section 10(10D) of the Income Tax Act.
