Postal Life Insurance Scheme - Features, Benefits & Eligibility

Every individual must financially insure one’s life. Purchasing a life insurance policy ensures that a policyholder’s family receives a financial backup after his/her death.

To promote this habit among Indians, the Central Government keeps updating the benefits under Postal Life Insurance or PLI scheme.

This insurance plan gives maximum coverage to an insured individual against an affordable premium. Keep reading to learn more about this insurance plan.

The PLI scheme originated during British rule in 1884. It started as a welfare scheme under Queen Victoria to cover her postal employees.

Later it also covered the female employees of the postal and Telegraph department in 1894.

The Central Government of India now manages Postal Life Insurance. This scheme now financially secures individuals working in the public sector, cooperative society, educational institutions, local and autonomous bodies, etc.

PLI scheme gives coverage up to ₹5 lakhs against an affordable premium. There are six plans under this scheme such as Santosh, Suraksha, Sumangal, Suvidha, Bal Jeevan Bima and Yugal Suraksha.

Let’s check the features of this scheme to understand what the PLI scheme is in detail.

The features of the PLI scheme are as follows.

• It provides financial and social security to a policy holder’s family and creates opportunities for healthy savings.
• Premiums against this insurance scheme are affordable.
• The PLI scheme has applicable tax exemptions under section 80C of the Income Tax Act.
• The amount above PLI maturity will be exempted from tax under IT section 10(10).
• The chosen term doesn’t affect the bonus on a PLI scheme.
• Nominee transfer, salary recovery facility, joint insurance for spouse, etc., are available for eligible applicants.
• There is a rebate of 2% on annual premium and 1% on half yearly premium.
• There is an additional 10% benefit available for a spouse.

Let’s check the benefits of the policy to make an informed decision regarding the purchase. This will also help understand the details of Postal Life Insurance plan.

The benefits offered by the PLI scheme are as follows.

• PLI scheme offers highest return against low premium for products in the Indian Life Insurance market
• Individuals can avail loan under this scheme for three to four years, depending on the chosen plan. The loan interest rate against PLI is 10% per annum.
• An insured can pay premiums in any post office all over the country.
• This scheme offers flexibility to convert endowment insurance from a whole life insurance policy and vice versa.
• Allows issuance of duplicate bond certificates when the original one is lost.
• The insurance plan is active even after an employee quits the job.
• Surrender options and a paid-up value feature is offered.

These benefits of the PLI policy can be accessed by the individuals who clear the eligibility parameters.

The Postal Life Insurance plan covers a wide network of employees working in State and Central Government organisations. Individuals belonging to the following list can apply for this scheme.

• Paramilitary Forces and Defence
• Autonomous and Local Bodies
• Reserve Bank of India
• Scheduled Commercial Banks
• Public Sector Undertakings
• Financial Institutions and Nationalised Banks
• Government-aided Institutions
• Joint Ventures Having a 10% Joint Stake
• Medical Schools
• Private Educational Institutions
• Professionals in the Medical Sector, etc.

Additionally, an individual must be at least 19 years old to apply for Postal Life Insurance online.

Let’s check the steps to pay PLI online. This will help streamline the entire process.

Individuals can pay the Postal Life Insurance online by following steps.

Step 1: Visit the postal India website and generate a customer Id.

Step 2: Enter the necessary details such as policy number, sum assured, insured name, mobile number, gender, etc.

Step 3: After registration, click on the payment option and select pay premium.

Step 4: Select number of instalments and proceed to payment.

Step 5: Click on the pay now option and select payment mode

Step 6: An online payment receipt will display.

Individuals should print this document for future needs. This will help them keep a tab over the status of the PLI policy.

Individuals can check the status of their PLI scheme in the following ways.

Step 1: Visit the official India Post website.

Step 2: Click on insurance from the drop-down menu and select PLI.

Step 3: On the PLI homepage, click on the login option.

Step 4: Enter customer ID, password and captcha to log in.

Step 5: The PLI status will display on the screen.

Individuals can check the status of their PLI scheme offline in the following ways.

• Individuals can send an email detailing their query to pli.dte@gmail.com.
• An insured can call on number 1800 180 5232, 155232 and place their query.
• They can write a letter to the Chief General Manager.

This is the necessary information on the PLI scheme and ways to pay the premium.

In addition, individuals can check the official website for notifications on premiums and eligibility. They can also use a calculator for Postal Life Insurance before making a payment.