Gram Priya is an Anticipated Endowment Assurance plan that provides payouts at regular intervals. This plan is suitable for those who wish to receive benefits during the policy term so that they can manage regular expenses at key milestones of their lives. The plan also promises high bonuses to the policyholders as long as no withdrawals are made.
The plan has certain restrictions with respect to the age at entry of the policyholder. The details are as follows:
|Minimum age at entry||19 years|
|Maximum age at entry||40 years|
The sum assured amounts have certain limitations as mentioned below:
|Minimum sum assured||Rs.10,000|
|Maximum sum assured||Rs.3 lakh|
*Sum assured limits are subject to change.
The premium amount that is required to be paid is calculated according to the sum assured chosen, age at entry, and other such factors. The premiums have to be paid on a monthly basis at the post-office where the policy was bought.
|Death Benefit||Upon the death of the life assured, the sum assured and accrued bonus is paid to the nominee as the death benefit.|
|Survival Benefit||As a survival benefit, the policyholder is provided with 20% of the sum assured after 4 years, 20% of the sum assured after 7 years, and 60% of the sum assured along with bonus at the end of 10 years.|
|Nominal fee for late payment of premium||If the premium is paid a month after the due date, a nominal fine equal to Rs.1 for every Rs.100 of the sum assured is payable.|
|Assignment for loan/credit||The policy can be used as a collateral after completion of a certain time period to avail loans or credit.|
|No interest charged in case of natural calamities||In case the policyholder suffers a natural calamity, no interest will be charged on the premiums for maximum 1 year.|
Section 80C of the Income Tax Act, 1961 provides tax benefits to individuals who pay premiums towards life insurance policies.
|Premium payment options||The premium can be paid by cash or cheque. Policyholders can also opt for the auto-debit feature.|
|Accessibility||Since post-offices can be found in most rural areas, persons residing in such areas can purchase and manage such policies.|
|Transfer of policy||If a policy needs to be transferred from one post-office to another, it can be done by simply submitting a request for the same.|
The Rural Postal Life Insurance scheme provides some of the simplest and cheapest life insurance policies to the rural public. The scheme was initiated after the Malhotra Committee observed that only 22% of the insurance population was insured. Hence, in 1995 the government launched the Rural Postal Life Insurance scheme to popularise life insurance and increase penetration of the same. Since it is purely managed by the postal department, the cost of operations is low. This aids the government to provide low-cost insurance policies with high returns. These plans can be purchased by any individual residing outside the municipal limits.
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