The Grama Santosh plan is an endowment assurance plan provided under the Rural Postal Life Insurance Scheme. This plan is suitable for individuals who are looking for a protection-cum-investment plan. The individual enjoys the assurance of an amount equal to the sum assured amount chosen by the individual at the time of purchase of the policy. The plan also offers bonuses along with the benefit amounts.
The limits on ages at entry are as mentioned below:
|Minimum age at entry||19 years|
|Maximum age at entry||55 years|
The sum assured amount i.e. the maximum amount payable on the death of the life assured has certain limits.
|Minimum sum assured||Rs.10,000|
|Maximum sum assured||Rs.3 lakh|
*Sum assured limits are subject to change.
Policyholders are required to pay a specific amount on a monthly basis towards the policy. The amount is calculated based on the sum assured the policyholder chooses, the individual’s age when the policy was purchased, the term of the policy, and other such factors. The premium can be paid at the post office where the policy was purchased by cash or cheque. The Postal Life Insurance scheme also allows the premium to be auto-debited from the individual’s salary.
|Death Benefit||In case the life assured expires during the term of the policy, the sum assured along with accumulated bonuses are provided to the nominee as the death benefit.|
|Maturity Benefit||When the policyholder reaches the age of maturity as mentioned at the policy inception, he/she will receive a maturity benefit equal to the sum assured plus accrued bonus.|
|Policy surrender||The policy can be surrendered after completion of 3 years of the policy. The surrender value will depend on the surrender factor and the term of the policy.|
|Nominal fee for late payment of premium||If a premium is not paid in a specific month, it can be paid the following month with a minimal fine which is calculated as Rs.1 for every Rs.100 of the sum assured.|
|Policy revival||A policy can be revived after payment of unpaid premiums with interest. A policy can be revived only twice in a policy term.|
|Assignment for loan/credit||The policy can be assigned to avail loans or credit.|
Section 80C of the Income Tax Act allows individuals to enjoy tax benefits on the life insurance policies they possess.
|Accessibility||Since a vast network of post-offices exist in India, the Rural Postal Life Insurance is easily accessible. The policy can be purchased and the premiums can be paid at nearby post-offices.|
|Premium payment options||Premiums can be paid by cash or cheque. One can opt for auto-debit of premium from the salary too.|
The Rural Postal Life Insurance is a guaranteed life insurance scheme as it is backed by the Government of India. The death benefit and maturity benefits are guaranteed. The scheme was started in order to offer basic life coverage to the rural public. A few traditional life insurance plan types are offered and all such plans are available at low prices. The premium payable is low while the returns are high. The reason Postal Life Insurance policies are low cost because it is managed by existing post-offices without hiring any additional resources. The scheme has seen a steady growth since its inception in 1995. Many individuals in the rural sector opt for the Rural Postal Life Insurance scheme to protect their families financially.
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