• Rural Postal Life Insurance Grama Sumangal Plan

    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options
    By Prarthana Gopal | 23 Sep 2023

    The Grama Sumangal plan also known as the Anticipated Endowment Assurance plan is a money-back life insurance plan that offers payouts at regular intervals. This plan is suitable for individuals who are looking for a plan that provides life cover as well as regular instalments to manage short-term financial expenditures.

    Eligibility for Grama Sumangal Plan

    Certain age-limits have been laid out for individuals who wish to purchase the Anticipated Endowment Assurance plan.

    Minimum age at entry 19 years
    Maximum age at entry 55 years

    Sum Assured details of Grama Sumangal Plan

    The maximum amount that is payable on the death of the life assured is known as the sum assured.

    Minimum sum assured Rs.10,000
    Maximum sum assured Rs.5 lakh

    Premium payable for the Grama Sumangal Plan

    The policyholder is required to pay certain amounts of money on a regular basis for the insurer to cover his/her risk. This amount is known as the premium. The premium amount depends on the sum assured chosen, the policy term opted for, the age at entry, etc. The premiums can be paid on a monthly basis at a post office. The premiums can be paid by cash or cheque.

    Features of the Grama Sumangal Plan

    • The plan can be purchased only by residents of rural sections of India.
    • The plan offers two policy term options – 15 years and 20 years.
    • A medical examination is necessary to purchase the policy. For a non-medical policy, the maximum sum assured that can be availed is Rs.25,000 and the maximum age at entry is 35 years.
    Death Benefit In case of death of the life assured, the sum assured plus accumulated bonuses are payable to the beneficiary.
    Maturity Benefit If the individual survives until the end of the term of the policy, a maturity benefit equal to the sum assured plus accumulated bonuses, if any, will be payable to him/her.
    Survival Benefit For 15-year policy term: After completion of 6 years, 9 years and 12 years, 20% of the sum assured is provided. After completion of the policy tenure, 40% of the sum assured is provided. For 20-year policy term: After completion of 8 years, 12 years and 16 years, 20% of the sum assured is provided. After completion of the policy tenure, 40% of the sum assured is provided.

    Other Key Features

    In addition to the primary features, the Grama Sumangal plan has a few more beneficial features:

    Nominal fee for late payment of premium In case premium payment is missed for a month, it can be paid in the following month. In addition to the premium, a fine equal to Rs.1 for every Rs.100 sum assured has to be paid.
    Policy revival A policy will lapse if the policy was in-force for a period within 3 years and premiums were not paid for 6 months. Also, a policy will lapse if the policy was in-force for more than 3 years and premiums were not paid for 12 months. Such policies can be revived by paying the unpaid premiums. A policy can be revived twice in a policy term.
    Assignment for loan/credit After completion of 3 years, the policy can be assigned as a collateral to avail loan or credit.

    Tax Benefits

    Section 80C of the Income Tax Act, 1961 allows a deduction from the gross total income for the premiums paid towards the policy.

    Other Benefits

    Accessibility The wide network of post offices in the country facilitate easy access to the rural postal life insurance.
    Premium payment options Premiums can be paid by cash or by cheque. Auto-debit of premiums from the salary is also available.

    About Rural Postal Life Insurance

    The Rural Postal Life Insurance scheme was created with the objective to provide life cover to the persons who reside in rural areas. The cost of the insurance has been kept low in order to benefit the vulnerable section of the society as well as provide optimum life coverage for women. The success of the Rural Postal Life Insurance is owed to the vast network of post offices that limits the cost of operations resulting in low-cost life insurance policies. The scheme is entirely managed by the Department of Posts and offers coverage to lakhs of rural citizens in the country.

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