PLI (Postal Life Insurance): The Definitive Guide(2020)

Firstly, which is the first Insurance institute/company in India?
In a country where we respect the woman in India, back then, Insurance is not offered to woman. Still, who offered insurance to women first in India?
On the other hand, which is the institute/company that provides Low premium and High bonus too?
Insurance Institute that gives Bonus that does not change by a term you opt for on the other hand?

Answer to all of these 4 questions is the same i.e., Postal Life Insurance(PLI).

Though the very best Endowment policies are offered through PLI, many don’t know fully about them. In fact, the reason being, lack of agents who can explain very well nowadays.

Postal Life Insurance scheme is a post office insurance started in the year 1884 for the sake of postal employees has been extended to other Government employees( so it is often called Postal life insurance for government employees). Further, this was further extended to other clients also which you will know as you go through this post.

PLI meaning insurance. Read even more about the need and importance of Life Insurance in my previous post and come back here to understand better.

Indeed, who are eligible?

Specifically, let’s see who have the eligibility for PLI:

1. Who is Eligible for Postal Life Insurance (PLI)?

Employees of the following Organizations are eligible for Postal Life Insurance India:

Central Government

Defence Services

Para Military forces

State Government

Local Bodies

Government-aided Educational Institutions

Reserve Bank of India

Public Sector Undertakings

Financial Institutions

Nationalized Banks

Autonomous Bodies

Extra Departmental Agents in Department of Posts
PLI scheme in Post office has extended clientele also…

PLI extended clientele: Extended Clientele for PLI….

Firstly, Employees Engaged/ Appointed on a Contract basis by central/ State Government where the contract is extendable
The Employees of all scheduled Commercial Banks
Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and in addition such other institutions notified by Government
The Employees of deemed Universities, an educational institute accredited by recognized bodies such as the National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India, etc.
Employees (teaching/non-teaching staff) of all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Government) of Secondary/Senior Secondary education i.e., CBSE, ICSE, State Boards, Open School, etc.
Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt/Private Hospitals, etc), Engineers (including Engineers studying Master’s/Post Graduate degree after passing GATE entrance test), Lawyers registered with the Bar Council of India/States, Charted Accountants registered with the Institute of Charted Accountants of India, Architects, Management Consultants, Bankers working in Nationalised Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks, etc.
Similarly, employees of listed companies of NSE (National Stock Exchange) and Bombay Stock Exchange (BSE) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, Infrastructure Sector, etc, where employees are covered with Provident Fund/ Gratuity and/or establishment maintains the leave records of such employees.

But, others are not eligible except for the above-stated categories for the Post office PLI scheme(under PLI extended clientele).

2. What is the Minimum & Maximum Sum Assured allowed in a Postal Life Insurance Plan?

Sum Assured can be from Rs20,000(Minimum) to Rs 50 Lakhs(Maximum) in PLI.

3. How to pay PLI premium?

You can PLI pay in any of the 1,54,939 Post offices i.e., Postal Life Insurance offices, in the Country.

The premium can be paid directly in any of the :

Head post office (HOs),
Sub Post office (SOs) or
even in Branch post offices (BOs) now consequent on the migration of BOs to DARPAN PLI, a sophisticated technology implementation at the village level. As a result, the PLI transaction made at BOs hits the central server directly and your premium is updated immediately on payment. If you register your mobile number with the system either initially you provide your cell number while filling PLI application for a new policy or update subsequently by giving a written request at HO ( you can forward through BO/SO also), you receive SMS on PLI premium payment.

Even more, you can opt for payment of premium through salary recovery if 20 or more policies exist in any institute.
In addition, PLI Premium can be paid Online.

4. How to pay PLI Premium Online? (exact Procedure to follow):

Check out this earlier post on postal life insurance login:PLI pay online

How to make online payment of PLI?-The Definitive Guide[2020 update]

Online payment of PLI

PLI customer login details and much more is given in that post. Postal life insurance statements also can be had from the above procedure. PLI pay online details by means of postal life insurance login. So, you may try to pay online for your new PLI scheme policy.

5. How to Get a Quote for a PLI policy premium?

Log in to the following link and fill in the details sought for and get a quote finally for PLI Plan in post office: https://pli.indiapost.gov.in/CustomerPortal/loadQuotePage.action

6. What is GST on Postal Life Insurance?

GST of 4.5% on new premium for a period of first one year(12 months); subsequently, from 13 months to end of the tenure 2.25% on the premium is applicable on life insurance w.e.f. 01-07-2017.RPLI premium calculator with GST and PLI premium calculator with GST will help you to find the premium payable.

7.Postal Life Insurance Plans:

PLI Plan in post office:

PLI (Postal Life Insurance )Plans — Postal Life Insurance Plans

Types of PLI Policies:

Whole Life Assurance(WLA) (SURAKSHA)
Convertible Whole Life Assurance (CWLA)(SUVIDHA)
Endowment Assurance (EA) (SANTOSH)
Anticipated Endowment Assurance (AEA)(SUMANGAL)
Joint Life Assurance (YS) (YUGAL SURAKSHA)
Children Policy(Baal Bhima Yojana)

So, these are the Post office Insurance Schemes available for the eligible customers. For choosing a postal life insurance policy, you need to go through the details firstly. Now, let`s a drive-in.

8.Postal Life Insurance Plan Details:

(i) WHOLE LIFE ASSURANCE (Suraksha)(W.e.f. 01-11-1987) :

Age Limit/ Age next birthday (ANB):19-55 years.
Sum Assured (SA): Minimum is Rs 20,000-
Sum Assured Maximum is Rs 50,00,000;
Get a Maturity amount at the age of 80 years.
Meanwhile, after 4 years, the loan facility can be availed –Usually, it is 90% of the surrender value
Of course, the policy can be surrendered after 3 years. But it is not advisable to surrender any insurance policy for that matter as it will be a loss to the policyholder.
Paid to Nominee after the death of insurant @ highest bonus until the death of insurant even after the policy premium payment ends at the age of 60 years (Maximum age for paying premium is 60 years). In such case claim amount with bonus is payable to the nominee/claimant
It can be converted into an EA Policy after one year and before 57 years of age of the insurant.
Bonus payable after completion of 5 years. If you surrender or assign for a loan before 5 years, the policy is not eligible for the bonus.
However, the proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for the loan
Postal life insurance bonus rate: Bonus @ Rs76/- per thousand per annum will be paid as per the latest PLI Bonus rates w.e.f. 01-04-2020.
In addition, a terminal bonus of ` 20/- per ` 10,000/- of sum assured per policy, maximum of ` 1000 per policy.

(ii)ENDOWMENT ASSURANCE (Santosh) PLI Santosh:

Age:19-55 years. SA: 20000-50,00,000(in multiples of Rs10000);
Loan on PLI Santosh facility after 3 years;
The policy can be surrendered after 3 years.
Maturity age can be predetermined as 35,40,45,50,55,58 and 60 years
Maturity/Death claim=Sum Assured+ Bonus accrued
If you surrender or assign for a loan on PLI Santosh before 5 years, the policy is not eligible for the bonus.
But, the bonus is payable after completion of 5 years.
However, the proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for the loan.
Rebate: Re1-per every Rs20,000. Quarterly:0.5%; Half yearly:1%; Yearly: 2% on premium.
An endowment policy not only helps your family just in case of earning member`s demise but also helps you’re taking care of huge expenses that come later in life, such as education of youngsters or grandchildren, children’s marriage, medical procedures, retirement needs, buying a new house, etc.
Bonus: @ Rs52- per thousand per Annum w.e.f. 01-04-2020. In addition, a terminal bonus of Rs20 per Rs10,000/- of sum assured per policy, a maximum of Rs1000 per policy.

(iii)CONVERTIBLE WHOLE LIFE ASSURANCE (Suvidha) (w.e.f. 01-11-1987)

Age:19-50 years.
It can be converted into EA after 5 years.
Sum Assured Min: Max: Rs20000- Rs50 Lakhs
If one opts for conversion, age should not exceed 55 years on the date of conversion.
However, if the option for conversion not exercised within 6 years, the policy will be treated as Whole Life Assurance. The loan facility is also available after 4 years.
Surrender: The policy can be surrendered after 3 years;
If you surrender or assign for a loan before 5 years, the policy is not eligible for the bonus.
However, the proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for a loan.
Bonus: as per conversion. In other words, if the policy is not converted to EA, the bonus of the whole life will be given. If the policy is converted to EA before 6 years(5+1 year grace period), an EA bonus will be given.

(iv)ANTICIPATED ENDOWMENT ASSURANCE (Sumangal)

(w.e.f 01-02-1984):

It is a Money Back Policy with a minimum of Rs20,000 to maximum SA of Rs 50 lakhs.

Firstly, it`s best suited to those who need periodical returns for their financial goals like children’s education, home construction, etc.
But, No Loan/Surrender/Alterations.
However, Survival benefit (SB) is paid to the insurant periodically as follows:
In respect of 15 years Money Back policy: Age:19-45 years. Paid 6 years (20%), 9 years (20%), 12 years (20%), and 15 years (40% and the accrued bonus).
In the case of 20 years Money Back policy: Age:19-40 years paid 8 years (20%), 12 years (20%), 16 years (20%), and 20 years (40% and the accrued bonus).
Such payments will not be taken into consideration in the event of the unexpected death of the insurant and the full sum assured with accrued bonus is also payable to the assignee or legal heir.
Bonus:4800 per year per 1 Lakh Sum Assured as per the latest rates w.e.f. 01-04-2020.
Sumangal Postal Life Insurance calculator will give you the amount of premium to be paid for certain age. This can be accessed by using Post Info app.

(v) JOINT LIFE ASSURANCE (PLI Yugal Suraksha)(w.e.f.01-08-1997)

PLI Yugal SurakshaAge/ANB:21-45 years. The average age of spouse between 21 to 45 years
Covering the life of both the spouse.
It is a joint-life Endowment Assurance.
However, Spouses need not be an employee. Policy Term: 5-20years. EA Bonus.
Death claim (SA +Bonus accrued) will be paid to the survivor before the DOM. No continuation of policy.
Specifically, life insurance coverage is provided to both the spouses to the extent of a sum assured with accrued bonus with only one premium.
On the other hand, all other features are the same as an Endowment policy. Loan: after 3Years: Surrender: after 3 years.
Rebate: Re1-on first Rs40,000-SA &Re1-per Rs10,000 in excess of Rs40,000- subsequently.
Rebate: In addition, Half-yearly: 10% and Yearly: 50% on premium for one month instantly.
PLI Bonus rate: Rs.52/- per thousand per Annum w.e.f. 01-04-2020. However, a terminal bonus of Rs20 per Rs10,000/- of sum assured per policy, a maximum of Rs1000 per policy.
Yugal Suraksha premium calculator will help you to understand the average age concept between the spouses.

(vi)CHILDREN POLICY (Bal Jiwan Beema)(w.e.f.20-01-2006)

Maximum 2 children in the family are eligible for this policy. Insurance cover to children of PLI Policy.
Child Age: 5-20 years in a family. Parent Age: in between 19-45 years.
But, Maximum sum assured is Rs 3 Lakh or equivalent to the sum assured of the main policy holder whichever is less.
In fact, the full sum assured with the accrued bonus shall be paid to the child after the completion of the term of the children’s policy. However, there is no need to pay the premium after the death of the main policyholder.
On the death of the child/children, the full sum assured with the accrued bonus shall be payable to the main policyholder specifically. No premium need be paid if the main policyholder dies
However, No loan is eligible in this policy.
Furthermore, can be Paid-up after 5 years.
EA Bonus: 52/- per annum per thousand w.e.f. 01-04-2020. Endowment Assurance bonus will be paid.

Now, Let`s check out details of postal life insurance further…

9. What is so special about PLI?

Low Premium. High Bonus. This is the specialty of PLI.

PLI can offer “Low Premium and High Bonus’’ when compared to other private players for 3 valid reasons: (i) Low establishment costs; (ii) Less Advertisement; (iii)No agency commission.

10.Silent features and benefits of PLI scheme in post office

PLI scheme in post office has the following benefits:

PLI is a Central Govt. scheme & Guaranteed by of India.
Indeed, the insurance covers Risks of Life/creates opportunities for wise savings.
Provide social security for the family members also.
LOW PREMIUM: Premium is lower than any other insurance company.
HIGH BONUS (Low establishment costs; Less Advt; No agency commission). The bonus is higher than any other insurance company.
PLI HAS INCOME TAX EXEMPTION UNDER SECTION 80C up to Rs1.50 Lakhs.
Beyond that PLI Maturity will be tax-free under IT section 10(10).
However, the bonus of PLI does not change by a term you opt for in a given plan. In other insurance companies, the bonus will be less for shorter terms when compared to longer terms. But, PLI Bonus is unique irrespective of Term in a given plan.
SALARY RECOVERY FACILITY IF MORE THAN 20 EMPLOYEES OPT FOR IT.
TRANSFER /NOMINATION/ASSIGNMENT FACILITY is also available.
REBATE ON PREMIUM @ 2% ON ANNUAL PREMIUM AND 1% ON HALF YEARLY PREMIUM
JOINT INSURANCE FOR SPOUSE ALSO THOUGH SPOUSE IS NOT EMPLOYED
Helpful in planning for financial goals such as children’s education, the marriage of a daughter, retirement plan and other financial needs.

More Features of PLI:

It is an investment made on the life of an insurer which is gifted to his family when he is no more. The best example is PLI Whole Life Policy, where the highest bonus is paid even for the period from the cessation of payment of premium till his death. This is a unique feature not found in any other policy of other insurance companies.
Even more, a central Govt. scheme with full security exclusively for eligible employees/professionals. As Majority are salaried people, the probability of lapsing is less and the PLI fund is also more robust.
Just for an additional 10% or so (Rs100 or so), insurance is covered for spouse (need not be an employee) jointly in Yugal Suraksha.
Coverage provided under PLI continues even after an employee quits the job also.
Additional facilities the scheme offers to the policyholder are Loan, Paid-up- value, surrender options, and conversions especially.
Further, an Online PLI premium payment facility.
Even more, you can pay the premium at any Post-office all-over the country.
Loan: Loan facility is also available after 3 or 4 years depending on the plan you opt for. However, the PLI Loan Interest rate is 10% per annum compounded Half Yearly.
The age limit starts from 19 years of age.
Maximum sum assured up to 50 years of age.

Postal Life Insurance is also the best Investment plan from other all banking sectors with the highest return per year. Now, check out for Postal Life Insurance Calculators:

11.PLI Premium Calculator and PLI Bonus calculator:

Low Premium and High Bonus in PLI explained…

For example, for a policyholder, let the Age be:25 years;

Span (Term) is:35 years;

Type of PLI Policy is: Endowment Assurance (EA/60)

Premium is Rs4300 per month .

Sum Assured is: Rs 20,00,000-

Total Low Premium Paid is :Rs18,06,000- {₹4300(premium/month) x12(months)x35(years)}

Benefit in Premium itself is : Rs1,94,000-

Maturity Value (MV) is: SA + Bonus Accrued

PLI bonus calculator
Bonus Accrued= Term X Bonus per year per one lakh X Number of Lakhs

MV=20 Lakhs(35x5200x20) = 20 Lakhs+36.40 Lakhs=56.40 Lakhs (High Bonus)

How to check your PLI premium from premium tables?

Firstly to arrive at the PLI premium, one has to assess the one`s age next birthday(ANB) first as follows by subtracting the Date of birth from today’s date:

For example(i):

SLNO	Particulars dates	Date	Month	Year
1	Today`s date or date of proposal/first premium date	01	04	2020
2	Date of Birth (for example) (-)	31	07	1985
3	Age next Birthday/Age for checking premium table	0	8	34

PLI Plans

Thus, in the above example, his age is 34 years and 8 months which means, the age that he acquires by next birthday is 35 which is called ANB (Age Next Birthday). So, ANB is=35 years for seeing the PLI premium table.

If he chooses to take Endowment Assurance(EA) for Rs 10 Lakhs as the sum assured up to his age 60 years, the policy will mature at his 60 years (EA/60). The premium in the PLI premium table is shown for Rs 10000 Sum Assured against the given age.

In this case for 35 years of age (starting age/ANB) for a policy up to 60 years of age(maturity age), the premium is shown as Rs32. Then, for Rs 10 Lakhs sum assured comes to Rs 3200 premium.

From this a rebate of Rs 50 has to be subtracted(Rebate is Re1 for every Rs 20,000 sum assured) to become Rs3150. Further, GST @4.5% is to be added to become the final PLI premium to be paid monthly: Rs3292.

However, after 12 months, the premium reduces as GST reduces to 2.25% as mentioned above. Then, from 13^th month onwards, his PLI premium till his maturity(subject to change in GST as decided by Central Govt) will be Rs3221.

PLI Premium Table & PLI Scheme Chart

You could see the PLI premium tables /PLI Scheme charts appended below:

The Postal Life Insurance premium table will help you reckon your premium on your own.

Benefits of PLI Premium Calculator:

This Postal Life Insurance Premium Calculator (PLI calculator) will help you understand the benefits of Postal Life Insurance schemes.

By now you understand that the Postal life insurance bonus is one of the highest in the prevailing insurance market. PLI calculator 2020 will help you understand that the PLI Plans are with a low premium and high bonuses.

So, after checking the Postal life insurance premium and maturity calculator as above, you have to go for the estimation of the Death claim.

Let`s check-in.

12. Postal Life Insurance Calculation

In PLI, Rough estimate of amount paid on Death is:

Amount paid on Death is: SA + Bonus accrued.
For example, Age:25 years; Span is 35 years; EA/60;
Premium is Rs4300PM.
Sum Assured is : Rs 20,00,000-
If the insurant dies unfortunately at his age of 40 years, his nominee will be paid:
Rs20 Lakhs+(Rs5200x20x15years premium paid)=Rs20Lakhs+15,60,000=35,60,000-

This Postal Life Insurance premium calculation will make you understand the amount of death claim that gets settled in case of an eventuality.

PLI Maturity Calculator: PLI calculator: PLI Premium calculator 2020:

PLI calculator helps to understand the benefit of PLI in terms of span spent in the policy. Calculation of PLI maturity is based on bonuses accrued in each year and the span up to which it is paid up.

Firstly, let’s see what will be the PLI bonus for Rs 10 Lakhs Sum Assured for a person ages 30 years for different terms.

5 Years PLI santosh maturity calculator

PLI Santosh maturity calculator: A 30-year person who pays Rs 17150 for 5 years in PLI (Santhosh/Endowment assurance), he will be covered with insurance of Rs10 lakhs. Subsequently, after 5 years, he gets nearly Rs12.60 Lakhs as a maturity amount. Maturity is more than in any Bank or other insurance companies.

But, if the same amount is invested in Banks as Recurring deposit (RD) @6.1% (compounded quarterly)Rs12,04,754 will accrue (calculated as per the latest PLI bonus rates 2020-21). That means more interest, with life insurance and that too maturity without tax. There is no other better-guaranteed return apart from this.

10 Years: PLI 10 year plan

A monthly PLI premium of Rs 8350 is paid for 10 years term, Rs 15.20 Lakhs will be the maturity after 10 years. As per Bank rates, it earns Rs13,82,838 which quite less (with Bank RD rate of 6.1% compound interest).

For any amount that is required after 5-10 years (margin money for house building, the fixed amount proposed to give it to your parents), if anyone pays PLI premium for 5 years term, one can get Income tax exemption under section 80© apart form maturity without tax.

However, as far as insurance is concerned, insurance for shorter periods is not advisable. However, if you have enough insurance for longer terms already( for more information read: how much insurance is required for a person?), you can go for shorter periods also.

13.Postal Life Insurance Surrender value calculation

Postal life insurance surrender value calculator using PLI surrender factor table is shown here. surrender value calculator of pli policy gives the rough idea of how much you get on surrendering a PLI policy.

PLI Surrender Value Calculator

A PLI calculator will help you know how it works:

SURRENDER VALUE= [PAID UP VALUE+REDUCED BONUS] X SURRENDER FACTOR.

PAID-UP VALUE= SUM ASSURED X Number of months/year’s premia is paid total term of the policy [Number of months /years]

Proportionate/reduced bonus=Paid up value x term of the policy x existing PLI bonus rate 1000

Bonus is added every year in April for the policies that are paid up to march. So, bonuses will be added for the number of years for which premium is paid in the month of a march for the respective years.

PLI Santosh surrender value calculator

The surrender Factor of PLI can be reckoned from Surrender Factor Table. Age can be derived for reckoning surrender Factor of PLI as follows:

Particulars	Days	Months	Years
Surrender Application Date
Date of Birth of Policy Holder (-)
Age

PLI Santosh surrender value calculator

PLI surrender factor table
How is PLI Surrender Value Calculated?

Meanwhile, based on the age arrived as above, check for the corresponding surrender factor of PLI against the policy maturity age from the Surrender Factor Table. Then, that surrender factor of PLI is multiplied by (Paid-up value Bonus ) that gives Surrender Value finally from the PLI surrender value factor chart.

NOTE: BONUS WILL BE PAID ONLY AFTER 5 YEARS [60 MONTHS] PREMIA IS PAID.

14. How to transfer PLI to the civil post office from army postal service? Or How to transfer PLI to civil post office?

Documents required for PLI transfer

PLI Policy Bond
Post office address where you would transfer the policy

Meanwhile, to transfer a PLI policy, you first have to write an application to the PLI office (nearest army post office). For the format of the application Surrender Factor Table.

By filling this application, you submit it to the nearest army post office and also, if necessary, submit a Xerox copy of the bond. Thus, within a month your PLI POLICY will be transferred to the nearest civil post office.

So, after transfer to the civil post office, you have to go to the post office every month and pay the premium. But, the premium is not deducted from your salary after transfer to the Civil Post Office.

You can also pay premium online with the help of net banking. This is how to transfer PLI to civil post office.

15.PLI/ Army PLI customer care number:

In case of any further issues please contact PLI Headquarter at this number.

Toll-free no. – 1800 180 5232, 155232
Land Line no.- 011 24673177

You can check the Army Postal Life Insurance policy status by contacting the above-mentioned numbers.

16. How to Check Your Postal Life Insurance Status?

Postal Life Insurance policyholders can check the status of their policy as follows:

Through Online PLI website:

You can view PLI status online. However, One has to register its email-ID and mobile number in the Mccamish system against their name and policy details on the PLI website. Once they follow the procedure as detailed in the article: Online Payment of PLI you need to login with credentials to check the status of their Postal Life Insurance policy.

Through Email

To know the status of their Postal Life Insurance policy, policyholders can write to either pli.dte@gmail.com or amplidte@gmail.com.

Phone Number and PLI Customer Care Number :

You may call on the toll-free number 1800 180 5232, 155232. You can also call their landline number 011 24673177.

Contact US page on the website:

You can also get the contact details of the people who can help you in case you have any concerns based on the city you reside in under the ‘Contact Us’ section on the website.

For example, if you reside in Andhra Pradesh, then you can find the contact details of the official who can help you with your queries. The contact detail will include the designation of the official/officer, along with the office address, email ID, and telephone number also.

Through Post:

You can send your queries by post to the following address:

Chief General Manager,

Directorate of Postal Life Insurance,

Chanakyapuri Post Office Complex,

Ist Floor, New Delhi – 110021.

Therefore, it is a simple process to check the status of your policy.

17.ROLL OUT OF CORE INSURANCE SOLUTION (CIS) PROJECT:

Back then, all the PLI / RPLI operations have been automated under FSI Project 2012. So, New PLI software in FSI takes care of all processing work to be carried out at CPCs and the Competent Authority can approve online without physical movement of files beyond CPCs.

Further, more than 12 Lakhs PLI policies of APS have been migrated to Mc Camish in June of 2018. Customers of PLI Policies of APS are now able to (i) Get Policy servicing requests accepted/processed PAN India (ii)Pay premium in any Post Office PAN India and also pay premium online through Customer Portal.

Further, DARPAN-PLI App was launched in April 2018. Facilities offered under DARPAN- PLI APP are:

Firstly, the collection of premia for PLI and RPLI policies at Branch Post Office in rural areas, with online updating of the policies.
Further, Indexing of maturity claims in respect of PLI and RPLI Policies at Branch Post Office in rural areas itself.

*These initiatives will improve after-sales services of DOP to PLI/RPLI customers of rural areas even.

IMPLEMENTATION OF CORE INSURANCE SOLUTION (CIS) PROJECT:

Through web portal and mobile postal customers can view and go for PLI transactions on a real-time basis.
Convenient Premium Payment Options: You can pay the premium through various methods i.e. cash, cheque, pay deduction, credit/debit card. You can also effect payment through ECS, ATMs. Furthermore, you can avail of Net Banking as a part of the ‘Core Insurance Solution’ (CIS).
Customer Care: The Solution will bring about a state of art Customer Call Centre to handle customer requests. Thus, there will be a Faster turn-around time for claims settlement.
Anytime anywhere policy procurement. All insurance policies will be stored electronically for easy retrieval and quicker customer service fulfillment from anywhere in the country soon.

Fact: Specifically, it is a fact that Bonus rates are subject to change for any insurance company (including LIC/Tata/SBI insurance, etc.) depending on the death rate, claims ratio, etc.

18.Bonus for Postal Life Insurance

Postal life insurance bonus rate is highest among all other insurance shcemes under the sun.

Bonus for Postal Life Insurance policies and other benefits of Postal Life Insurance are as follows:

SLNO	Policy Introduced	Symbol & Bonus	Age limits	Surrender after	Loan after	Max/min Sum Assured (SA)	Rebate/ Remarks
1.	Suraksha PLI Whole Life Assurance (WLA) 01-11-1987	WLA Bonus PLI=7600 Per 1 Lakh Sum Assured	19-55 years	3 years	4 years	Max=₹50Lakhs Min=₹20,000 As per the latest rule, at the age of 80years, Insurant can take Maturity value (SA+accrued bonus)	Re1- per every 20000 SA. Hly=1% rebate; Yly=2% on premium
2.	Santosh PLI Endowment Assurance (EA) 01-11-1987	EA Bonus PLI=5200 Per 1 Lakh Sum Assured	19-55 years age	3 years	3 years	Max=50Lakhs Min=20000 In multiples of Rs10,000	Re1- per every 20000 SA. Hly=1% rebate; Yly=2% on premium
3.	Suvidha PLI Convertible Whole Life Assurance (CWLA) 01-11-1987	CWLA Bonus If converted EA bonus(5200) will be given; otherwise WLA(7600) bonus will be given	19-50	3 years	3 years	Max=50Lakhs Min=20000 In multiples of Rs10,000	Re1- per every 20000 SA. Hly=1% rebate; Yly=2% on premium
4.	Sumangal PLI Anticipated Endowment Assurance (AEA) 01-02-1984	AEA Bonus PLI=4800 Per 1 Lakh Sum Assured	19-45 for 15 yrs 19-40 for 20yrs	Not eligible	Not eligible Alterations not eligible	Max=50Lakhs Min=20000 In multiples of Rs10,000	Rebate of Re1- per every 20000 SA. Hly=1% rebate; Yly=2% on premium 2. Full SA will be paid w/o deduction of survival benefit on a death claim.
5.	Yugal Suraksha(YS) (only in PLI) Joint Policy 01-08-1997	The bonus of EA =5200 Per 1 Lakh Sum Assured	Age between 21-45 years Terms=5-20 years	3 years	3 years	Max=50Lakhs Min=20000 In multiples of Rs10,000	Rebate of Re1-on first 40,000 SA & Re1- per 10,000 thereafter. *Further, Rebate for:* *Half-yearly—10% of the 1-month premium.* *Yearly-50% of* *1-month premium*.
6.	Child Policy 20-01-2006	Bonus of EA=5200 Per 1 Lakh Sum Assured	Parent Age:19-45 Yrs Child age: 5-20 years	5 years	Not eligible	Max=3 Lakhs Min=20,000	Rebate of Re1- per every 20000 SA. Hly=1% rebate; Yly=2% on premium.

PLI scheme chart

Postal Life Insurance Plans Details-Summary

Net accretions to Post Office Life Insurance Fund (POLIF) and Rural Post Office Life Insurance Fund (RPOLIF), DOP invest in Government securities and other portfolios as per IRDA guidelines since 4th November 2009.

Name of Plan	No. of new policies procured in year 2018-19	Sum Assured (in ` cr) (unaudited)	Aggregate No. of active Policies (in lakh)	Aggregate Sum Assured	Premium income (in ` cr)
PLI	2.88 Lakhs	17048.92 Cr	44.03 Lakhs	137895.74Cr	7978.35cr

Postal Life Insurance-2018-19:

Details	PLI	RPLI
Number of Claims (in lakh)	2.44	2.70
Amount paid (in ` crore)	3914.97	1397.85

Claims 2018-19

PLI Forms for download with a link:

Check for useful PLI forms:

PLI Proposal Form
RPLI Proposal Form
Maturity Claim Form
Loan Application Form
Nomination Form
Personal Bond of Indemnity
Revival Application Form
Surrender Application Value
AEA Survival Benefit Form
APS Children Policy Proposal Form
APS PLI Proposal Form
Children Policy Proposal
CWA Conversion Form
Death Claim Form

That said, you can access the above different PLI forms from this link: http://www.postallifeinsurance[dot]gov[dot]in/inner page/downloads{dot]php

Things to remember for customer guidance:

(1) Nomination in Post office PLI Plan:

In case of any Post office PLI plan, Nomination can be changed at any point in time. However, if you assign your Policy, [either, to a bank or to get a loan] automatically the nomination gets canceled. On reassignment, ownership of the Policy is regained, but the old nomination does not automatically get restored. In addition, in such a case, you have to nominate afresh for your PLI plan.

For any Post office PLI plan, Insurants are advised to nominate the person to whom the claim amount shall be payable in the event of his/her death. Further, in the case of the minor nominee, the name and concern of the appointee (guardian) who may receive the said amount on behalf of the minor must be given. However, in the event of nominee predeceased insurant, a change in nomination must be registered with the CPC through your post office.

Precautions:

You have to Keep the Policy bond in a safe place & inform someone as to where the bond is.

Similarly, you should check the Policy schedule on the 1st page & you should pay a premium without expecting notice for payment.

Likewise, note the policy number in your diary along with due dates and the Premium amount and keep a xerox copy of the bond and the first page of the passbook for any PLI Plan.

In the same way, note the Post office Phone number in your diary

Inform especially about the Change in address, phone number, email id to post office/CPC in writing.

Specifically, you will not receive any notice for claiming survival benefits, you may take note of the same in dairy/set a reminder electronically for a future date.

Failure to pay a premium in time results in lapsation of policy which means the life cover will not be available to you. So, pay premiums in time.

You can visit http://ccc.cept.gov.in/complaintregistration.aspx. Further, you can send by email to pli[dot]dte[at]gmail[dot]com and you can register your complaint there.”

Lapsing of PLI Policy:

In case you fail to pay the premium/premia that has/have become due, the policy becomes( treated as) lapsed. If the policies are of less than three years duration, if more than six premia are unpaid, the policy lapses.

In case of policies of more than three years duration, if more than twelve premia are unpaid, the policy lapses.

Reinstatement of PLI Policy: PLI Revival calculator

You can reinstate a discontinued policy. You can go for reinstating automatically (is permissible) in the following two conditions such as (i) policy has completed 3 years and 12 months premium was not paid, and (ii) policy has not completed 3 years and 6 months premium is unpaid.

Insurant may deposit all the arrears of premia till that date of such payment along with interest at the rates prescribed by the Department of Posts.

You should inform the CPC to this effect through the said Post Office along with a certificate of continued good health in the prescribed proforma signed by you and a certificate from your employer certifying that you had not taken any leave on medical grounds during the said period.

FAQs on PLI

(1)How can I get Loan for PLI?

Ans: To begin with, you can apply for PLI Loan by downloading the Loan application form the PLI website and send such a request to “The Head Postmaster, Central Processing Centre CPC(Head Post office under which you pay a premium now) along with policy document and premium receipt book.

Thus, you can forward such a Loan application to CPC through any nearby post office. Further, you can go for the second/ subsequent loan is admissible if the first loan is fully repaid.

A compound Interest of 10% is charged on a six-monthly basis for the PLI Loan taken by you. Subsequently, you can repay the loan every six months and counter PA makes entries to that extent in the Loan repayment book.

Moreover, you can collect a receipt in token of having paid the Loan installment or one-time payment at the counter. Specifically, it is advisable to repay Loan every six months without a default as interest on interest will accrue, being compound interest.

For instance, you can take a loan from the endowment assurance policy after completion of three years and from the whole life after completion of four years.

2. How can I revive my PLI policy?

Ans: Policyholders can revive their policies by filling up the revival application that can be downloaded from the PLI website.

Furthermore, free of cost, you can forward the said revival application to “The Head Postmaster, Central Processing Centre CPC (Head Post office under which you pay a premium now) along with the required documents for the purpose through any nearby post office.

Free of cost, you can forward all types of requests such as Revival application, Loan application, Change requests like name/address/email ID/phone number changes, Surrender application, maturity application, Nomination change application, death claim application, etc., to “The Head Postmaster, Central Processing Centre CPC (Head Post office under which you pay the premium now) along with the required documents for the purpose through any nearby post office.

3. What is the penalty/fine that you have to pay for delayed payment of PLI premium?

Ans: If you forget to pay a monthly premium for one month before the end of the month, you have to pay penalty/fine of Re 1 per every Rs 100 premium at the time of payment of the next premium in addition. For example:

If you did not pay a premium of Rs 300 for march/2020 and you propose to pay on 5-4-2020 for 2 months of march and April-2020, then, you have to pay Rs3 as penalty. For instance, you failed to pay for 5 months in row form December/2019 to march/2020 @ 300 per month premium; then at the time of payment of premium in April-20, you have to pay a penalty of Rs 30. Details are as follows:

Month : Penality in Rs

December-19 :₹12

Jan-20 :₹9

Feb-20 :₹6

March-20 :₹3

April-20 :₹0

Total: :₹30

4. Is PLI maturity tax free?

Certainly, Maturity or surrender proceeds (amount paid) of PLI policy or on the death of the insured are completely tax-free for the receiver subject to certain conditions as per Section 10(10D) of the Income Tax Act, 1961.

Here, the amount of sum assured plus any bonus (i.e. the policy proceeds) paid is tax-free. The conditions are as follows:

Period	Life Insurance Maturity is Taxable when
01-04-2003 to 31-03-2012	The premium payable in any year exceeds 20% of the actual sum assured*
01-04-2012 onwards	The premium payable in any year exceeds 10% of the actual sum assured*

PLI Plan

* In detail, the actual sum assured means the sum assured which is least in all the policy years and does not include any bonus amount which is to be received over and above the assured amount and does not include any premiums which are to be returned to the policyholder.

**In case of death of the insured, where his nominees get the policy proceeds the same shall be tax-free even if the premium paid in any year crossed the prescribed percentage of sum assured.

5.Is Postal Life Insurance covered under 80C?

Ans: Yes. In fact, under section 80C, PLI premium payment is exempt from Income tax. Similar to any Life Insurance, PLI gets all tax benefits especially. In short, the PLI returns are tax-free. Section 80C allows a deduction from gross total income (before arriving at taxable income) of up to Rs 1.5 lakh per annum on Postal Life Insurance.

6.Can one continue the policy if one quits the government service?

Certainly yes. Even after quitting service, you can continue the PLI policy by making payment of premium at any post office throughout the country eventually.

7.Can one surrender the PLI policy prematurely?

Type of PLI Policy	Can be surrendered after
Endowment assurance	36 months of premium payment and after 3 years(both conditions should be satisfied)
Whole life assurance	48 months and after 3 years(both conditions should be satisfied)
Children policy	60 months and after 3 years(both conditions should be satisfied)
Anticipated endowment Assurance	No surrender.
Joint life(Yugal Suraksha)	36 months of premium payment and after 3 years(both conditions should be satisfied)

PLI Plan surrender

However, you may consider taking loan instead of surrender, if it serves the purpose.

8. Can one get the full amount paid with accrued bonus, if the policy is surrendered prematurely?

Bonus will be considered after five years for surrender value calculation on the paid-up value. However, Full policy amount with accrued bonus will be given even if death occurs on the very next day of acceptance of the proposals for all bonafide cases. However, it is not advisable to surrender.

9.What is the upper limit of life insurance in PLI?

The upper limit of life insurance in PLI is Rs50 Lakhs. However, the maximum limit for child policy in PLI is Rs3 Lakhs only.

10. How can I change my mobile number and email id in PLI Online?

Ans: Firstly, you must submit a written request Letter to the Head Postmaster, CPC _________Head Post office (HO under which your premium paying post office falls) to update the Phone number and eMail ID in your policies. This may take a few days (3-4days).

11.How can I register my email id in PLI?

You have to visit the nearest post office for getting your mobile number and email address updated in the system. So, for the purpose, you can make a request in writing at the nearest post office.

12.How can I get duplicate bond in PLI?

How to get duplicate PLI bond?
You can apply for a duplicate policy bond (if lost, destroyed or mutilated,) in writing to Postmaster by submitting the following documents:

(i) Firstly, an application stating the policy number

(ii) Fee: Secondly, payment of Duplicate Bond fee in post office of Rs 100.

(iii) Send premium receipts, if any.

(iv) Further, an indemnity bond furnished with two sureties on a non-judicial stamp paper for Rs100.

This is how to get duplicate PLI bond.

Few exemptions in view of Covid-19 Scenario:

13. In COVID-19 Context, Can I pay PLI/RPLI premia in the post office for this month as it attracts penalty if not paid in this month?

Ans: You can pay PLI/RPLI premium without Penalty for delayed premium payment in r/o March month until 30-4-2020 as per latest instructions from Directorate vide 02-01/2011-LI dated 31-03-2020)

14. In COVID-19 Context, Can I revive my lapsed PLI/RPLI policies in which I have not paid premia during the last 5 years for which the final date has been fixed as 31-3-2020?

Ans: Yes. Due to the COVID-19 outbreak, you can revive such policies up to 30-06-2020.

Conclusion:

In other insurance policies, the bonus rate will be less for shorter terms than the longer terms. Above all, lucky that the Bonus of PLI does not change by the term you opt for. So, you enjoy the same bonus (PLI Bonus rate) for any term throughout.

Finally, Postal Life Insurance in the post office is one of the first best and good options that you can go for given the above facilities, provided you are eligible for the policy.

While selecting insurance policies and choosing a spouse, never try to prefer the best ones. Why because, the best ones are not exclusively available🙂. In fact, all we can do is choose what suits us. Therefore, you may visit the nearest post office to join the PLI Scheme in post office.

Now It’s Your Turn

I hope this post showed you why to choose Postal Life Insurance specifically.

Meanwhile, I’d like to know now what you have to say.

So which part from this post are you ready to try first?

In detail, are you going to start calculating your financial value, arrive at the sum assured that suits you and calculate the PLI premium you have to pay for the sum assured aimed at?

Maybe, of course, you want to choose Postal Life Insurance if you are eligible.

Either way, let me know in the comments section below accordingly.

Summary

Article Name

Postal Life Insurance (PLI): The Definitive Guide(2020)

Description

Postal Life Insurance (PLI): The Definitive Guide(2020) explains the uniqueness of PLI, benefits you can enjoy, which policy to choose & so on

Author

postalschemes.com

Publisher Name

postalschemes.com