Postal Life Insurance (PLI) | Features & Benefits

Postal Life Insurance (PLI) was introduced on February 1, 1884. It was essentially a scheme of State Insurance mooted by the then Director General of Post Offices, as a welfare scheme to benefit Postal service employees. 

Over the years, Postal Life Insurance (PLI) has grown substantially. In the beginning, the maximum limit of life insurance was only Rs 4,000 which has now increased to Rs 50 lakhs. It is the oldest Life insurer in this country. 

In this post, let’s take a look at the features, benefits, and eligibility of Postal Life Insurance (PLI).

Postal Life Insurance (PLI)

Postal Life Insurance (PLI) offers life insurance cover with high returns at cheaper premium. It is run and managed by Post Office. 

It covers employees of Central and State Governments, Central and State PSUs, Nationalized Banks, Universities, Government aided Educational institutions, Local Bodies, Autonomous Bodies, Credit co-operative societies, Joint Ventures having a minimum of 10% Govt./PSU stake etc. 

PLI also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces.

Insurance Plans in PLI

Presently, PLI offers 6 types of plans and they are listed below.

1. Whole Life Assurance (SURAKSHA)

2. Convertible Whole Life Assurance (SUVIDHA)

3. Anticipated Endowment Assurance (SUMANGAL)

4. Endowment Assurance (SANTOSH)

5. Joint Life Assurance (YUGAL SURAKSHA)

6. Children Policy (BAL JEEVAN BIMA)

Features and Benefits of Postal Life Insurance (PLI)

Postal Life Insurance (PLI) is the only insurer in the Indian Life Insurance market today, which gives the highest return at lowest premium for any product in the market. You can avail the following benefits by investing in Postal Life Insurance (PLI).

1. Postal Life insurance offers highest insurance cover at lowest premium in the insurance market.

2. It gives highest return (bonus) at lowest premiums.

3. Nomination facility is available. You can nominate your beneficiary, and can also change your nominee any time.

4. You can pay the premium on an annual, half-yearly and monthly basis.

5. You will get a passbook to track the payment of premium etc.

6. You can avail tax benefits for the premiums paid under Section 80C.

7. A policy can be transferred to any Circle within India without any additional charges.

8. Loan facility is available against this policy.

9. Assignment facility is also available under this scheme.

10. You can revive your lapsed policy under certain conditions.

11. A duplicate policy document will be issued to you if you have lost your original document.

12. You can convert from Whole Life Assurance policy to Endowment Assurance policy and from Endowment Assurance policy to other Endowment Assurance policy as per the regulations.

13. PLI is only for Government and Semi-Government employees.

14. PLI is guaranteed by Government of India.

Eligibility for Postal Life Insurance (PLI)

Employees of the following organizations are eligible for obtaining a Postal Life Insurance (PLI) policy.

1. Central Government

2. State Government

3. Defence Services

4. Para Military forces

5. Public Sector Undertakings

6. Local Bodies

7. Government-aided Educational Institutions

8. Reserve Bank of India

9. Financial Institutions

10. Nationalized Banks

11. Autonomous Bodies

12. Employees of all Scheduled Commercial Banks

13. Extra Departmental Agents in Department of Posts

14. Employees Engaged/ Appointed on Contract basis by Central/State Government where the contract is extendable

15. Employees of deemed Universities an educational institutes accredited by recognized bodies such a National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India etc

16. Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government

17. Employees (teaching or non-teaching staff) of, all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Governments) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open Schools, etc.

18. Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt/Private Hospitals etc), Engineers (including Engineers pursuing Master’s/Post Graduate degree after having passed GATE entrance test), Management Consultants, Chartered Accountants (registered with Institute of Chartered Accountants of India), Architects, Lawyers (registered with Bar Council of India/ States ), Bankers (working in Nationalized and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks) etc.

19. Employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, and Infrastructure Sector etc, where employees are covered for Provident Fund/Gratuity and/or their leave records are maintained by the establishment.

How to transfer a policy from one Post Office to other?

The system of transfer of Postal Life Insurance (PLI) policy is very simple. You can apply to the Chief Post Master General through the Post Office where the policy stands or the Post Office in which you desire to pay the premium. The Post Office will accept your application and send it to the CPMG (PLI).

Also read: Why do you need life insurance?

Also read: Term insurance | how to choose term insurance?

Also read: LIC Bima Shree Policy | Features & Benefits 

Also read: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

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