Grama Suvidha is a convertible whole life assurance policy offered under the Rural Postal Life Insurance scheme. The plan can be converted to an endowment assurance policy after completion of a certain time period. The benefits provided on death and maturity include bonuses too. This makes Rural Postal Life Insurance policies one of the cheapest life insurance policies with the highest returns in the market.
Policyholders need to consider the below-mentioned age restrictions.
|Minimum age at entry||19 years|
|Maximum age at entry||55 years|
The sum assured or 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.
The Grama Suvidha plan, like other Rural Life Insurance policies, can be availed for very low premiums. The premium is calculated based on factors such as the age at entry, sum assured chosen, policy term, etc. The premiums can be paid on a monthly basis at the post-office where the policy was purchased.
|Death Benefit||In case of untimely death of the life assured, an amount equal to the sum assured plus accumulated bonuses is payable to the beneficiary of the policy.|
|Maturity Benefit||If the policyholder survives the complete policy tenure, he/she can claim the maturity benefit i.e. the sum assured plus accrued bonus.|
|Nominal fee for late payment of premium||If the premium is not paid for a certain month, it can be paid in the consecutive month with a late payment fine equal to Rs.1 for every Rs.100 sum assured.|
|Policy revival||If the policy has lapsed due to non-payment of premiums, it can be revived by paying the unpaid premiums along with interest. A policy can be revived twice at the most.|
|Assignment for loan/credit||Policies can be assigned as a collateral to receive loan or credit from a lending institution.|
Policyholders qualify for tax benefits under section 80C of the Income Tax Act, 1961.
|Accessibility||This scheme is run by the postal department and is hence easily available at a nearby post-office.|
|Premium payment options||Premiums can be paid by cash or by cheque. Policyholders can also opt for the auto-debit facility which automatically debits the premium amount from the salary.|
|Duplicate policy document||In case the policy document is torn, burnt, or mutilated, a duplicate copy can be provided.|
The Rural Postal Life Insurance was started in the year 1995 when the Malhotra Committee pointed out that the insurance penetration, especially in rural regions, is low. The scheme offers low-cost life insurance policies that provide high returns. The reason the postal life insurance service is affordable is because existing post-offices are being utilised to provide life insurance services and no additional resources were hired for the same. The Rural Postal Life Insurance scheme has seen a steady growth over the years and currently has lakhs of customers who enjoy the benefits offered.
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