Rural Postal Life Insurance Gram Suraksha Plan

Grama Suraksha is a Rural Postal Life Insurance plan that has low premiums and high returns. It is a whole life insurance plan that offers protection for the individual’s complete lifetime. Premiums can be paid throughout the term or up to a certain predetermined date. Death benefit and maturity benefits are payable under the specified conditions.

Eligibility for Grama Suraksha Plan

The plan mentions the age restrictions for the policy as follows:

Minimum age at entry	19 years
Maximum age at entry	45 years

Sum Assured details of Grama Suraksha Plan

The sum assured or the total amount payable on the death, too, has 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 Grama Suraksha Plan

The policyholder is required to pay a nominal amount, called the premium, on a regular basis to the insurer. He/she can choose to pay it yearly, half-yearly, quarterly, or monthly. The amount payable is calculated based on the sum assured chosen, age at entry, policy term, etc.

Features of the Grama Suraksha Plan

• Only individuals who reside in the rural regions of the country can purchase this policy.
• As soon as the policy is accepted, the insurance cover will commence.
• The plans also offers attractive bonuses. As of March 2014, the bonus rate was as high as 85%.
• Medical examinations to purchase the policy are mandatory. If a medical examination is not conducted, the maximum sum assured that is offered is Rs.25,000 and the maximum age at entry is restricted to 35 years.
• Policyholders can nominate an individual who will receive the death benefit when the life assured passes away.
• The policy can be converted to an endowment insurance policy if required.

Death Benefit	On the death of the life assured, the death benefit equal to the sum assured plus accrued bonus is paid to the nominee of the policy.
Maturity Benefit	If the life assured survives the policy term, he/she will receive the sum assured and bonus accrued as the maturity benefit.

Other Key Features

Nominal fee for late payment of premium	If the premium for a certain month is not paid and is settled in the following month, a nominal fine equal to Rs.1 for every Rs.100 of the sum assured chosen is payable.
Policy revival	A lapsed policy can be revived by paying the unpaid premiums with interest. A policy can be revived a maximum two times.
Assignment for loan/credit	After completion of a certain time period as mentioned in the policy, the policy can be assigned to avail loan or credit.

Tax Benefits

Policyholders enjoy tax benefits under section 80C of the Income Tax Act, 1961.

Other Benefits

Accessibility	The Postal Life Insurance scheme has made life insurance easily accessible even to the rural areas of the country.
Transfer of policy	A policy purchased in one post-office can be transferred to another post-office by submitting a request.
Premium payment options	The premium can be paid by cash or by cheque in the post-office. The policyholder can also choose the auto-debit feature that enables the premium to be deducted from the salary directly.

About Rural Postal Life Insurance

The Rural Postal Life Insurance scheme provides the most affordable life insurance policy in the market. It was started in the year 1995 after the Malhotra Committee found out that the insurance penetration in the country was very low. The Rural Postal Life Insurance was hence launched in order to increase awareness about life insurance, especially in rural areas, and increase life insurance penetration too. The Rural Postal Life Insurance policies are inexpensive mainly because the policies are managed by the postal department and no additional resources have been hired. Therefore, the cost of operations is very low. Also, this scheme is highly advantageous because one receives a life cover as well as high bonuses on paying a nominal premium. Also, it is considered reliable since it is backed by the government.