The Postal Life Insurance scheme was initiated with the idea to provide inexpensive life insurance plans to postal employees. It was later extended to employees of the central government, state government, and semi-governmental bodies. The plan helps government employees provide financial protection against the risk of death to their family members. The plans available under the scheme offer high bonuses for low premiums. Purchasing a policy under the Postal Life Insurance scheme provides an insurance cum investment solution and is easily accessible since it is availed from post offices.
Postal Life Insurance policies allow policyholders to avail loans after a certain predetermined period. Below are the details of the same:
It is advisable to avail loans from Postal Life Insurance policies only if absolutely necessary because it reduces the amount of bonus an individual receives. If a loan is availed within 5 policy years from the date of inception of the life insurance policy, bonuses will not be payable for that particular policy. If, on the other hand, a loan is borrowed after completion of the first 5 policy years, the bonus payable is calculated on the reduced sum assured.
Hence, during a cash crunch, it is essential for an individual to consider all options available before making a withdrawal from a life insurance policy.
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