A Guide To Applying For Postal Life Insurance

Postal Life Insurance (PLI) is one of the oldest and most reliable life insurance plans available at very economical rates. These plans are provided by India Post and offer a wide range of insurance policies, including whole life plans, convertible policies, endowment plans, money-back policies, insurance with joint-life cover, and child policies. The PLI plans were initially launched to provide welfare benefits to postal employees, but now they are extended to government and semi-government employees. The policyholder can buy a postal life insurance policy online or by visiting the post office.

Eligibility criteria

Postal Life Insurance (PLI) plans are provided by India Post and are available to government and semi-government employees. The plans were initially launched to provide welfare benefits to postal employees, but now they are also available to employees of:

• Central government
• Reserve Bank of India (RBI)
• Financial institutions or public sector undertakings and nationalised banks
• Department of Posts
• Paramilitary forces
• Educational institutions, extra-departmental agents, and autonomous bodies

The entry age for all PLI schemes is between 19 and 55 years old. The maximum age to buy a postal children's policy is 45 years, and the child's age must be between five and 20 years.

PLI plans include:

• Whole Life Assurance (Suraksha)
• Convertible Whole Life Assurance (Suvidha)
• Endowment Assurance (Santosh)
• Joint Life Assurance (Yugal Suraksha)
• Anticipated Endowment Assurance (Sumangal)
• Children Policy (Bal Jeevan Bima)

Online application process

Postal Life Insurance (PLI) is one of the oldest and most reliable life insurance plans available at very economical rates. These plans are provided by India Post, which offers a wide range of insurance policies, including whole life plans, convertible policies, endowment plans, money-back policies, insurance with joint-life cover, and a child policy.

To apply for Postal Life Insurance online, follow these steps:

• Log in to the official website of India Post.
• Navigate to the "Purchase a Policy" section.
• Select the quote and choose the suitable product and coverage for your needs.
• Fill in the details, including personal, employment, medical, and other relevant information.
• Generate a proposal by paying the first premium amount.
• After completing the online process, visit your nearest post office with a printout of the proposal request and other required documents.
• The list of required documents can be found in the "Tools and Utilities" section of the website.

It is important to note that Postal Life Insurance is restricted to government and semi-government employees. The entry age for these plans is between 19 and 55 years, and the policies provide coverage ranging from INR 20,000 to INR 50 lakh.

Required documents

To apply for postal life insurance, you will need to gather several documents to support your application. Here is a detailed list of the required documents:

Policy Document:

The policy document is a crucial piece of paperwork. It contains important information such as your policy number, which you will need when making transactions like premium payments. This number must be quoted correctly, whether you are paying your premium through a bank cheque or any other mode of payment. In case of any discrepancies or issues with your policy, having the policy document handy is essential for resolving them.

Proof of Identity and Address:

You will need to provide valid proof of your identity and residence. Accepted documents may vary, but typically, you can use your passport, driver's license, or government-issued ID card as proof of identity. For address proof, recent utility bills or bank statements with your name and address can be provided. It is recommended to check with the postal insurance provider for the specific documents accepted to ensure you have the correct ones ready.

Employment Details:

As postal life insurance is exclusive to government and semi-government employees, you will need to provide proof of your employment status. This can include documents such as an employment certificate, offer letter, or a salary slip. Additionally, you may be required to specify your job sector, such as central government, RBI, financial institutions, paramilitary forces, etc.

Medical Information:

Your medical history and current health status are important factors in assessing your application for postal life insurance. You may be required to fill out a medical questionnaire or provide medical reports from your doctor. Be prepared to disclose any pre-existing health conditions, medications you are taking, and any recent hospital visits or treatments.

Nominee Details:

It is crucial to nominate a beneficiary for your postal life insurance policy. This can be a family member or someone else you choose. Ensure that you have the correct and updated personal information of your nominee, including their full name, date of birth, address, and relationship to you. Remember that you can make changes to your nominee at any time.

Payment Details:

When applying for postal life insurance, you will need to decide on your preferred payment method for the premiums. You may choose to pay through cheque, cash, online transactions, or even opt for a deduction from your salary with your employer's consent. Regardless of the method, ensure you have the necessary details, such as bank account information or valid cheques, ready for providing or setting up payments.

Payment methods

The premium payment modes accepted by the postal life insurance policy are cheque or cash, as well as other payment facilities such as online payment, over-the-counter payment at post offices, or via electronic clearance system (ECS).

If you opt for online payment, you can log in to the official website of India Post, go to the "Purchase a Policy" section, select the quote and suitable product and coverage for you, fill in the details, and generate a proposal by paying the first premium amount.

You can also pay your premium via bank cheque, but remember to mention your policy number on the back of the cheque. The policy number is a 13-digit number that is needed when making transactions such as premiums.

Another option is to pay the premium via deduction from your salary. This facility can be availed with the consent of your employer. If you choose this option, the premium amount will be regularly deducted from your salary, and this amount will also be reflected on your salary slip.

Remember that the premium must be paid in advance on the first day of each month. A grace period is allowed until the last working day of the month. If you fail to pay the premium, your policy will be treated as lapsed. For policies less than three years in duration, if more than six premiums have not been paid, the policy lapses. For policies more than three years in duration, if more than twelve premiums have not been paid, the policy will lapse.

Loan facilities

Postal Life Insurance (PLI) offers a loan facility to its policyholders, allowing them to take out loans against the surrender value of their life insurance policy. This provides financial assistance when needed. The interest rate on these loans is fixed at 10% per annum, calculated on a half-yearly basis. It's important to make timely payments to avoid additional charges and potential policy termination.

To be eligible for a loan under the PLI scheme, policyholders must meet certain conditions. For endowment and joint life assurance policies, a minimum of three years is required, while for whole life and convertible whole life assurance policies, a minimum of four years is necessary. The loan amount is subject to a maximum prefixed portion of the determined surrender value, with a minimum of ₹1000. Policyholders can avail of up to two loans at the insurance provider's discretion.

The loan facility is a valuable feature of PLI policies, providing policyholders with access to funds during emergencies or financial setbacks. The nominal interest rates make it a cost-effective borrowing option. The straightforward application and management process adds to the convenience of this facility.

Frequently asked questions