Conversion of PLI Policy

What is Conversion of PLI Policy

What is the conversion of the PLI Policy?

• “Conversion” refers to changing the maturity date of a PLI Policy already held by you. This includes switching from Whole Life Insurance to Endowment, as well as adjusting the maturity date of an Endowment policy by antedating or postdating, leading to changes in premium amounts. Let’s check further with the below example:-

• – An EA/60 Policy is maturity at the age of 60 years – You can convert maturity at EA/50 – and then the Premium will increase. Here you decrease the maturity period of your existing policy.
• – An EA/40 Policy means maturity at the age of 40 yrs- You can convert maturity age at EA/60- Premium will decrease. Here you extend the maturity period of your policy.
• Policies other than Joint Life Assurance, Children Policy Anticipated Endowment Assurance policies, and 10-year Rural PLI, conversions involving alteration of policy terms other than reduction, discontinuance, or commutation of premia referred to above will be allowed only after payment of premia for an integral number of years ( on after completion of one year and month of policy acceptance only i.e if policy date of acceptance is 10.11.2023 than conversion will be allowed in the next march-2024, or Marhc-2025 or March-26 so on but not before 1yr of maturity)

• However, this conversion is further subject to extending the premium term or deferring the maturity date, on the production of a medical certificate of good health at the expense of the assured.
  

 How can I Change the Plan in PLI/RPLI

Conditions for Conversion of PLI Policy:-

•  Conversion of any PLI policy other than CWL class to an EA class payable at the ages of 35, 40, 45, 50, 55, 58, and 60 only will be admissible.
• Conversion of PLI policy as would put the date of maturity or the date of cessation of premium to a date preceding or within one year from the date of conversion is not admissible.

•  Such conversions will be permitted only once for the duration of each policy without a fee. Second and subsequent conversions shall be subject to a small fee not exceeding Rs. 20/- or as may be fixed by the Department, in each case.

•  No conversion or alteration from Anticipated Endowment Assurance and 10-Year Rural PLI policies to other classes of policies or vice-versa, or conversion or  alterations in the selected term or in the sum assured of the Anticipated Endowment Assurance policy and 10-Year Rural PLI policy will be allowed.

The other formalities  are detailed below:-

•  In the case of an unassigned policy, consent of the insured to the terms of conversion in the existing form would be sufficient.

•  If the policy is conditionally assigned, consent of both the assignee and the insured would be necessary. If the assignment is absolute consent of the absolute assignee will be sufficient. The consent of the assignee is to be obtained in the form indicated below :

•  Application Form for Conversion of PLI Policy in PDF:- Download
• Policy document in the original bond
•  Premium Receipt Book/Loan receipt book if the loan is taken.
• a certificate of DDO  regarding recovery of premia from pay for the last six months
• Fee receipt of Rs.20/ if second or subsequent conversion.
• Medical Certificate if required. ( In case the Term is extended)