Best Postal Life Insurance Schemes: Top Picks

Postal Life Insurance (PLI) is a government-backed life insurance scheme in India, introduced in 1884. It is one of the oldest and most trusted insurance schemes in the country, initially aimed at providing insurance to postal department employees. Over time, it has expanded its coverage to other government and semi-government employees and professionals in various sectors. PLI offers a range of insurance policies, including whole life plans, endowment plans, and child policies, with the key benefits being low premium rates and high returns. The policies are flexible, allowing for changes in beneficiaries and the option to convert from one type to another. With its comprehensive coverage and financial security, PLI remains a preferred choice for many.

Postal Life Insurance (PLI) is a government-backed scheme

The PLI scheme provides significant premium returns on life insurance, with the maximum cash assured granted under this policy being Rs. 50 lakhs. The Central and State Governments, Universities, Government-Aided Educational Institutions, Autonomous Bodies Local Bodies, Cooperative Societies, Joint Ventures with a minimum of 10% Government/PSU stake, and Employees of Central and State Public Sector Enterprises are all eligible for this policy.

PLI offers seven different types of plans, including whole life plans, convertible policies, endowment plans, money-back policies, insurance with joint-life cover, and a child policy. The policy can be easily converted from whole life to endowment assurance, and one can buy more than one PLI policy. The entry age for the policy is between 19 and 55 years, except for the child plan, where 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 offers the highest bonus rates at the lowest premium rates in India. The policyholder can nominate a beneficiary and make changes to the nomination. Additionally, the policyholder can buy a postal life insurance policy online or by visiting the post office. The policyholder also has the option to surrender the postal insurance policy after three years.

PLI offers high returns and low premium rates

Postal Life Insurance (PLI) is a secure and accessible choice for government employees, offering stable returns through affordable premiums and competitive interest rates. PLI offers the highest bonus rates at the lowest premium, compared to any other insurance provider in India.

PLI is a reliable life insurance plan available at very economical rates. These plans are provided by India Post, which offers a wide range of insurance policies such as whole life plans, convertible policies, endowment plans, money-back policies, insurance with joint-life cover, and a child policy. The maximum cash assured granted under this policy is INR 50 lakhs. The entry age of the person should be between 19 and 55 years for all post office PLI schemes. The minimum sum assured is INR 20,000, and the maximum sum assured is INR 50 lakhs.

PLI's lower administrative costs translate to competitive bonuses and better returns for policyholders. The length of the policy also affects the interest rate and bonus rate received. Long-term policies, like Whole Life Assurance, often accumulate higher bonus rates over time as they benefit from compounding and prolonged market exposure. Policyholders opting for longer terms may receive better bonuses due to the stability and growth in long-term funds.

The scheme provides comprehensive coverage

The Postal Life Insurance (PLI) scheme is one of the oldest and most trusted insurance schemes in India, introduced in 1884. Initially, it aimed to provide insurance to postal department employees, but it has since expanded its coverage to other government and semi-government employees and professionals in various sectors. The PLI scheme is known for its low premium rates, high returns, and comprehensive coverage, making it an attractive option for many.

PLI offers the highest bonus rates at the lowest premium rates compared to any other insurance provider in India. The policyholder is entitled to receive a bonus as a final payout, which is payable either to the nominee if the policyholder dies or to the policyholder upon attaining 80 years of age. The scheme also allows the policyholder to nominate a beneficiary and change the beneficiary's name as circumstances change. PLI policies can be assigned to secure loans and can be transferred from one post office to another.

The PLI scheme is a reliable and beneficial option, offering financial security and peace of mind to a wide range of individuals, including government employees, professionals, and those living in rural areas. With its low premium rates, high bonuses, and government backing, PLI remains a preferred choice for many in India.

PLI offers whole life assurance, endowment assurance and more

Postal Life Insurance (PLI) is offered by the Government of India and is one of the oldest and most reliable life insurance plans available at very economical rates. The PLI policy allows the policyholder to have a nominee and change the nomination anytime within the policy term. The policy can be easily converted from whole life to endowment assurance with reduced sum assured or as per specified rules. One can buy more than one PLI policy. However, the total sum assured should not be less than INR 20,000 and exceed INR 10 lakhs.

PLI offers the highest bonus rates at the lowest premium, compared to any other insurance provider in India. The policyholder not only receives the sum assured amount but also is entitled to receive a bonus as a final payout. This entire amount is payable either to the nominee, if the policyholder dies, or is given to the policyholder once they attain the age of 80 years. The policy can be converted from Whole Life Assurance to Endowment Assurance or from one type of endowment plan to another, subject to specified rules.

A loan facility is offered in accordance with this policy. When an Endowment Assurance policy reaches three years of maturity, or when a Whole Life Insurance policy reaches four years of the policy period, the policyholder can pledge the policy as collateral to the Heads of the Region or Circle on behalf of the President of India. Under this plan, assignment facilities are also offered.

The insured can avail themselves of income tax exemption as provided under Sec. 88 of the Income Tax Act. Additional facilities offered under this policy are Assignment, Loan, Conversion, Surrender and Paid-Up Value options. The policy can be transferred to any Circle within India, at no additional charges. Passbook facility is available to track the payment of premium and in case of loan transactions, etc. Premium can be paid on an annual, half-yearly and monthly basis. When the payment is due, the policyholder can make a payment on any working day.

The policy can be converted from whole life to endowment assurance

Postal Life Insurance (PLI) is a type of life insurance scheme offered by the Department of Posts in India. The government backs the policies, making them a secure and reliable option for policyholders. The scheme offers life insurance coverage to the children of policyholders, with eligibility extending to a maximum of two children per policyholder.

PLI offers a range of life insurance products that cater to individuals' insurance and savings needs. One of the most significant benefits of PLI is the security it offers. Being backed by the Government of India, policyholders can be assured of the reliability and stability of their insurance coverage.

PLI offers the highest bonus rates at the lowest premium, compared to any other insurance provider in India. One can pledge the PLI policy as collateral for a loan if a Whole Life Insurance Policy reaches four years of the policy period or an endowment policy reaches three years of maturity. The PLI policy allows the policyholder to have a nominee and change the nomination anytime within the policy term.

The policy can be easily converted from whole life to endowment assurance with reduced sum assured or as per specified rules. One can buy more than one PLI policy. However, the total sum assured should not be less than INR 20,000 and should not exceed INR 10 lakhs. The policy will automatically turn into a Whole Life Insurance policy by default if conversion is not opted for.

Frequently asked questions