The Bal Jeevan Bima plan is a Rural Postal Life Insurance plan designed to offer life cover to children. A parent who already holds a Rural Postal Life Insurance and has chosen a sum assured amount that exceeds the maximum limit of the Children policy may add the Bal Jeevan Bima Plan to his/her existing plan. The policyholder who purchases the policy is required to pay the premiums towards the policy. If, however, the policyholder expires, future premiums are waived off.
Prospective policy buyers are expected to keep certain age limits in mind for both, the child being insured and the parent who wishes to purchase the policy.
|Minimum age at entry of the child||5 years|
|Maximum age at entry of the child||20 years|
|Maximum age at entry of the policyholder||45 years|
The sum assured is the maximum amount payable upon the death of the life assured.
|Minimum sum assured||Rs.10,000|
|Maximum sum assured||Rs.3 lakh|
The premium is a nominal amount payable towards the rural life insurance policy on a regular basis to offer life cover. The premium that the policyholder i.e. the parent is required to pay depends on the age at entry, age at maturity, policy term, and other such factors. The premium payment modes available are monthly, quarterly, half-yearly, and yearly. Premiums can be paid by cash or cheque at the post office where the individual policyholder’s policy is held. Also, a policyholder can request for auto-debit of the premium from his/her salary.
|Maturity Benefit||On maturity of the policy, the maturity benefit amount equal to the sum assured plus accumulated bonuses is payable.|
In addition to the primary features, the Bal Jeevan Bima plan has a few more beneficial features:
|Policy surrender||Policies can be surrendered after completion of 5 policy years.|
|Policy revival||A lapsed policy can be revived within 6 months if the policy was in force for 3 years and can be revived within 12 months if the policy was in force for more than 3 years. A policy can be revived for maximum 2 times.|
According to section 80C of the Income Tax Act, a deduction can be made from the gross total income of the policyholder for the premiums paid towards the policy.
|Accessibility||Postal life insurance policies make insurance easily accessible to people in rural areas. The policies can be transferred from the current post office to a post office in the desired rural location too.|
|Issue of duplicate policy document||In case the original policy document is mutilated or lost, a duplicate document can be requested.|
Rural Postal Life Insurance was launched in the year 1995 after the Malhotra Committee pointed out in 1993 that only 22% of the Indian population was insured. The committee believed that Branch Postmasters of rural areas enjoy a position of trust from the people and can, therefore, spread awareness about the need for life insurance. The Rural Postal Life Insurance scheme saw a steady growth and has issued many lakhs of insurance policies to people residing in rural areas. Many different plan types are offered at affordable costs with the added benefit of bonuses.
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