Rural Postal Life Insurance Gram Priya Plan

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.

Eligibility for Gram Priya Plan

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

Sum Assured details of Gram Priya Plan

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.

Premium payable for the Gram Priya Plan

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.

Features of the Gram Priya Plan

• Only residents of the rural regions of India are permitted to avail this policy.
• The insurance cover will commence immediately after acceptance of the policy.
• Individuals can choose to nominate a person who will receive the benefits.
• Gram Priya is a 10-year Rural Postal Insurance plan.
• Medical examination is necessary for the plan to be accepted.

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.

Other Key Features

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.

Tax Benefits

Section 80C of the Income Tax Act, 1961 provides tax benefits to individuals who pay premiums towards life insurance policies.

Other Benefits

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.

About Rural Postal Life Insurance

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.