Postal Life Insurance (PLI) originally started as a welfare scheme for postal employees during the pre-independence era in 1884. Later, this scheme was expanded to include the Telegraph department. Quite notably, this is the first insurance cover in India to include female members of the Postal and Telegraph departments. Also, this is the oldest life insurance scheme introduced in India. This policy currently offers a maximum sum assured amount of Rs.50 lakh against the death of the insured.
In the present day, this coverage provides protection for all Central and State Government employees in the country. In addition to this, this policy can also be taken by members of government-aided educational institutions, public sector undertakings, nationalised banks, local bodies, etc. Members of the Defence and Paramilitary forces can also enroll in this cover. This scheme provides different types of coverage for eligible members in the country. This policy ensures that the dependents of enrolled members are financially protected against the loss of income caused by the death of the primary earner.
Types of policies available in PLI
Similar to a regular life insurance company, PLI offers a range of policies for eligible policyholders. Members are free to choose from any of the following types of covers as per one’s requirements:
Whole life assurance (Suraksha): This policy provides accrued benefits to the dependents following the death of the insured. The maturity age for this policy is capped at 80 years. The maximum sum insured amount available under this policy cover is Rs.50 lakh.
Endowment assurance (Santosh): As the name implies, this is an endowment policy that combines the benefit for both insurance and investment. In case of the death of the policyholder or the end of the maturity term, the sum insured amount along with the accrued bonus will be paid. The maximum sum insured amount available under this cover is Rs.50 lakh.
Convertible whole life assurance (Suvidha): This policy cover will begin as a whole life insurance cover. After a period of 5 years, it can be converted into an endowment assurance policy. If the option is not exercised within 6 years, the policy will continue to function as a whole life insurance cover.
Anticipated endowment assurance (Sumangal): This is a money-back policy ideal for people who wish to earn periodic returns from their coverage. Survival benefit is paid after a specific term of the policy. This policy can be taken for 15 or 20-year terms. The benefits are paid after periods such as 6 years, 9 years, 12 years, etc. In the event of the death of the policyholder within the policy term, the dependents are eligible to get the full sum insured amount.
Joint life assurance (Yugal Suraksha): This is an endowment assurance policy that also provides coverage for the spouse of the primary policyholder. The features are similar to that of the endowment assurance policy. Here, coverage for both spouses is provided with a single premium amount under the same policy cover.
Children policy (Bal Jeevan Bima): This policy is intended for the children of the primary policyholder. A maximum of 2 children can be covered under this policy. Children can be covered from the age of 5 years. The benefits will be paid to the children in case of the death of the primary insured or after the end of the maturity term.
Eligibility for PLI
The following eligibility criteria applies to people who wish to enroll in Postal Life Insurance:
- The applicant should be between 19 years and 55 years of age.
- This policy can be taken only by government employees or members of associated bodies.
- Salaried professionals in private companies cannot apply for this cover.
- Even after quitting their service, government employees can keep this policy active by paying premiums directly in the post offices.
Benefits of PLI
Postal Life Insurance comes with the following benefits:
- Only insurer to provide the highest return with the lowest premium for any of the above-mentioned insurance products in the market
- Easy process to change the nominee
- Loan facility under the endowment assurance policy after the completion of 3 years
- Revival facility in case the policy lapses due to unpaid premiums
- Ability to convert from whole life assurance to endowment assurance policy
How to check the policy status online
Checking the status of the policy used be a complicated process wherein a policyholder has to visit the post office and speak to an officer. However, the process has been simplified with the advent of Internet. Various tasks including paying the premium and checking the policy status can be done online. Some of the easiest ways to check the policy status can be given as follows:
PLI website: Policyholders can visit the website of Postal Life Insurance and create an account using their policy details. Once the account has been created, policyholders can login to their account and check the status of their policy whenever they want.
Email: Any queries regarding the policy status can be verified by sending an email to firstname.lastname@example.org. The email ids of respective state offices can be found from the official website.
Phone: There is a toll free number for policyholders to clarify the status of their policies. Policyholders can call the number 1800 180 5232 and get their queries answered.
Postal Life Insurance is one of the top schemes available for government employees in the country. People who work for the government can take advantage of this scheme, which costs much lower than other insurance covers in the market. While this cover is not available for the general public, the Postal Department also provides another policy by the name Rural Postal Life Insurance (RPLI) for the weaker sections of the society in rural areas. Both these policies are designed to ensure financial security to the family of the insured after their unexpected demise.