PLI Joint Life Insurance Policy: All You Need To Know

If you are considering a joint life insurance policy, there is One such plan is the PLI Joint Life Insurance Policy known as also  Joint Life Insurance/Yugal Suraksha” which refers to a life insurance agreement established by the government. 

Under this contract, a predetermined amount of money is disbursed to an individual or their surviving spouse or assigned beneficiaries after a specified term.  

A joint life insurance policy in PLI was introduced w.e.f. 01-08-1997. In the event of the
individual’s death, before the specified term expires, the sum is paid to their legal representatives or assigned beneficiaries. 

This article aims to provide the details of Joint Life Assurance, its features, benefits, and the process to apply for it. 

Introduction to Postal Life Insurance (PLI)

Postal Life Insurance is a government-operated insurance scheme that offers affordable
life insurance plans to Government employees and other eligible clientele. Back to 1884, PLI has been providing comprehensive insurance coverage to policyholders across the country.  

Joint Life Assurance is one of the prominent plans within the PLI framework, designed
to provide financial security to couples and families. 

Understanding Joint Life Assurance (Yugal Suraksha)

Definition and Benefits of Joint Life Assurance

 

    Joint Life Assurance is a unique insurance policy that covers the lives of two individuals under a single plan. It offers the combined benefits of life insurance coverage to both policyholders simultaneously. 

 

    This plan ensures financial protection for couples, enabling them to secure their shared future and the well-being of their loved ones. This plan is best for the employee special where the wife is eligible and the husband can be covered under this policy, in addition, both life covered under the single policy with a slightly higher premium only.  

    Another benefit is flexible maturity terms from 5 years to 20 years.

 

The key benefits of Joint Life Assurance of PLI include:

    The policy offered under this plan is designed to provide insurance coverage for both spouses, provided that the person obtaining the policy, along with their spouse, is literate and
has an independent source of income. 

    The policy duration must be between five and twenty years.

 

    In situations where an individual has multiple living spouses, coverage will only be available for the eldest spouse.

 

    The age range for both spouses at the time of policy entry should be between 21 and 45 years. Additionally, at the time of maturity, the older spouse should not exceed 60 years of age on their next birthday.

 

    As per the rules, both spouses are required to undergo a prescribed medical examination, regardless of the assured sum.

 

    The premium amount will be Calculated based on the equivalent age on the next birthday, calculated by adding the difference in ages of the spouses to the lower age.

 

    The calculation for equivalent age is provided in the table below.

 

    Premium payments will cease upon the death of either spouse.

 

    If both spouses survive until the end of the policy’s endowment term (maturity date), the assured sum along with any accrued bonuses will be paid.

 

    However, if one spouse passes away before maturity, the sum assured with the accrued bonus will be paid to the surviving spouse.

 

  In the unfortunate event of both insured lives passing away simultaneously, the sum assured with accrued bonus will be paid to the nominee or legal heir.

 

    It is important to note that no claims will be entertained if the policy lapses in accordance with these rules.

 

Eligibility and Coverage for PLI Joint Life Insurance:-

 

    Joint Life Assurance is available to married couples, and both spouses should be
eligible as per the PLI criteria.

 

    The minimum age of entry for this plan is 21 years, and the maximum age is 45
years.

 

    The maximum sum assured under Joint Life Assurance is determined based on the age
of the younger policyholder. However maximum sum assured limit is Rs. 50 lakh.

 

    The coverage period for Joint Life Assurance can period 5 years to a maximum of
20 years, depending on the age of the policyholders.

 

    The plan offers financial protection during the policy term, and in case of the demise of either policyholder, the sum assured is paid to the surviving policyholder.

 

Premium Calculation for Joint Life Insurance PL:- 

    The premium for Joint Life Assurance depends on various factors, including the age
of the policyholders, the sum assured, and the chosen policy term. 

    The premium amount is calculated based on actuarial principles and takes into account the
joint life risk of both policyholders. The premium payment frequency is monthly only.

 

Surrender and Loan Facility in PLI Joint Life Insurance Policy

PLI Child Policy-CP ( Bal Jiwan Bima)

 

    Joint Life Assurance provides the option for surrendering the policy in case the policyholders decide to discontinue the plan before maturity. Upon surrender, a surrender value is payable based on the policy’s terms and conditions. However, surrender is allowed only after 3yrs of the policy life.

 

    Additionally, policyholders can avail themselves of the loan facility against their Joint Life Assurance policy. The loan amount is determined based on the policy’s surrender value and
is subject to certain terms and conditions only after 3 yrs.

 

How to Apply for Joint Life Assurance in Postal Life Insurance

 

    Applying for Joint Life Assurance in Postal Life Insurance is a straightforward process. Here are the steps to follow:

Required Documents for Joint Life Insurance:- 

To apply for Joint Life Assurance, the following documents are typically required:

 

Ø Duly filled application form

 

Ø Identity proof (Aadhaar card, PAN card, passport, etc.)

 

Ø Address proof (utility bills, bank statements, etc.)

 

Ø Age  proof (birth certificate, school/college certificate, etc.)

 

Ø Passport-sized photographs of both policyholders

 

Ø Eligibility proof in case Govt. the employee has a copy of the I.D card or other documents like a copy of the degree etc…

 

Application Process for Joint Life Insurance PLI:- 

 

Ø    Visit the nearest Postal Life Insurance office or the official PLI website or search
for locate the PLI agents nearby You.

 

Ø Collect the Joint Life Assurance application form and fill it out accurately.

 

Ø Attach the necessary documents along with the application form.

 

Ø Completed application form and documents can be deposited to the PLI office.

 

Ø Pay the initial premium amount as per the guidelines provided by the PLI
authorities.

 

Ø Receive the policy document once the application is processed and approved.

 

Ø In case not satisfied after policy issuance a free look period of 15 days is available. The policy can be cancelled within 15 days of acceptance.

 

Features and Flexibility of PLI Joint Life Assurance:- 

 

Joint Life Assurance of PLI offers several features and flexibility options to policyholders. Let’s explore some of them:

 

Death Benefit and Maturity Benefit:- 

 

In the event of the demise of either PLI policyholder during the YS policy term, the sum assured is paid to the surviving policyholder. This death benefit provides financial support to the surviving policyholder, ensuring stability and security for the family.

 

If both policyholders survive the policy term, the maturity benefit is paid, which  is equal to the sum assured plus acrued bonuses. This amount can be utilized for various purposes such as retirement planning, children’s education, or fulfilling long-term financial goals.

 

Nomination and Assignment PLI Joint Life Insurance Policy

 

Policyholders have the flexibility to nominate a person who would receive the policy benefits in case of their demise. The nomination can be changed or updated during the policy term as per the policyholder’s requirements. In case minor children are nominated as nominee a person also need to nominate who will receive the claim during the minority of the children.

 

Additionally, policyholders have the option to assign their policy to another person or entity. Assignments can be done for reasons like availing loans or transferring ownership.

 

Conversion Options in Case of Divorce of Yugal Surksha PLI Policyholder:- 

 

Joint Life Assurance provides the flexibility to convert the policy into a single-life policy if required. This can be useful in situations such as the divorce of a policyholder. The conversion process is subject to certain terms and conditions specified by PLI.

 

Comparison with Other Life Insurance Plans:- 

 

When comparing Joint Life Assurance with other life insurance plans, it’s essential to consider the specific needs and preferences of the policyholders. Joint Life Assurance offers the advantage of covering two lives under a single plan, providing joint financial protection. It is ideal for married couples who want to secure their shared future.

 

However, individual life insurance plans have their own merits and may be more suitable
for certain individuals or scenarios. It’s recommended to evaluate different insurance options, understand their features and benefits, and choose the plan that aligns best with personal requirements.

 

Conclusion

 

Joint Life Assurance (Yugal Suraksha) in Postal Life Insurance is a valuable insurance plan that offers comprehensive coverage to married couples. It ensures financial security and protection for both policyholders, providing a sense of stability and peace of mind. With its unique features, flexibility, and the backing of the reliable Postal Life Insurance scheme, Joint Life Assurance is an excellent choice for couples looking to secure their future together.

 

By opting for Joint Life Assurance, couples can enjoy the benefits of a shared life insurance plan that covers both partners. In the unfortunate event of the demise of one policyholder, the surviving partner receives the sum assured, providing financial support during a difficult time. Moreover, if both policyholders survive the policy term, they are entitled to receive the maturity benefit, which can be utilized to fulfil long-term financial goals.

 

In conclusion, Joint Life Assurance (Yugal Suraksha) in Postal Life Insurance is a comprehensive and reliable insurance plan for married couples. It offers financial security, flexibility, and of benefits to the unique needs of couples. By investing in Joint Life Assurance, couples can ensure the well-being and future stability of their loved ones.

 

Frequently Asked Questions (FAQs)

 

1. Is Joint Life Assurance only for married couples?

 

Yes, Joint Life Assurance is primarily designed for married couples. 

 

2. Can I add more than one nominee for Joint Life Assurance?

Yes, Joint Life Assurance allows three nominees.

 

3. Can Joint Life Assurance be converted into a single life policy later?

 

Yes,  the option to convert Joint Life Assurance into a single life policy. This can be done only in situations such as divorce.

 

4. What happens if one of the policyholders passes away?

 

In the unfortunate event of the demise of one policyholder, the surviving policyholder receives the sum assured. This provides financial support and stability during a difficult time. The policy can not be continued by the surviving policyholder, 

 

5. Can I take a loan against my Joint Life Assurance policy?

 

Yes, Joint Life Assurance policies often provide the option to avail a loan against the policy’s
surrender value. The loan amount is determined based on the policy’s terms and conditions. However, it’s important to note that the loan facility may be subject to certain restrictions and requirements, which can vary between insurance providers.