1. what is postal life insurance?
Postal Life Insurance (PLI) is a life insurance scheme offered by India Post, backed by the Government of India. Launched in 1884, it’s known for its affordability, reliability, and attractive returns, making it a popular choice for many Indians.
What it is:
- A government-backed life insurance scheme is available to Indian citizens.
- Provides various types of life insurance plans, including whole life, endowment, and money-back policies.
- Offers financial protection to your loved ones in case of your death.
- Can also help you save for the future, with bonuses and maturity benefits.
Key features:
- Low premiums: Generally lower than private insurance companies due to government backing.
- Bonuses: Attractive bonus rates declared by the government, enhance your returns.
- Tax benefits: Premiums qualify for tax deductions under Section 80C of the Income Tax Act.
- Wide reach: Policies can be easily purchased through any post office in India.
- Safe and secure: Backed by the Government of India, ensuring stability and reliability.
2. When did PLI and RPLI start?
The two Postal Life Insurance schemes, PLI and RPLI, have different birthdates:
- Start date: 1st February, 1884
- Origin: Initially a welfare scheme for postal employees, later extended to other government departments and eventually the public.
- Significance: The oldest life insurer in India.
RPLI (Rural Postal Life Insurance):
- Start date: 24th March, 1995
- Origin: Introduced in response to the Malhotra Committee’s recommendation to increase life insurance coverage in rural areas.
- Focus: Targeted towards rural populations, with special emphasis on weaker sections and women workers.
So, PLI has been around for much longer, dating back to the British Raj, while RPLI is a relatively newer scheme aimed at bridging the insurance gap in rural areas.
3. What are the advantages of PLI and RPLI policies?
4. Can one revive a lapsed Postal Life Insurance(PLI) policy?
Revival may be on any number of occasions during the entire term of the policy, provided a period of consecutive 5 (five) years should not have passed from the date of the first unpaid premium (restriction of 5 years is applicable on the policies issued after 20.09.2019).
After the credit of the due premium with interest @12%per annum and a good health certificate, the policy can be revived. The revival amount may be paid in one lump sum or in convenient installments not exceeding 12 installments.
6. Is there any income tax rebate admissible for PLI policies?
7. When is the medical examination of the Postal life Insurance(PLI) proposer mandatory?
A PLI policy up to ₹ 2 lakh of the sum assured will be non-medical irrespective of age limit. Further, medical examination is not required for a policy (i) up to ₹ 5 lakh in PLI for age of the proposer not exceeding 40 years and (ii) upto ₹ 1 lakh in RPLI for the age of the proposer not exceeding 35 years. A medical examination is mandatory in respect of other PLI/RPLI policies.
8. What are the benefits of medical Postal life Insurance(PLI) policy?
9. Who are eligible for PLI and RPLI policies?
10. Has the declaration on the proposal form about fitness/medical history any bearing on the policy?
11. When can the conversion of a Postal life Insurance(PLI) policy be done?
Converting a PLI/RPLI policy means making a change that affects when the policy matures (pays out). This includes:
- Switching from a Whole Life Assurance (WLA) policy to an Endowment Assurance (EA) policy.
- Moving the maturity date of an EA policy up (antedating) or pushing it back (postdating).
The change in maturity date will likely result in a higher or lower premium payment.
12. If one spouse is eligible for taking PLI but the other is not, is there any scheme in PLI for both?
13. Is there a nomination facility available in PLI/RPLI?
If all nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs/legal representative(s) on the basis of a succession certificate, as the case may be.
14. When can the assignment of a PLI policy be made?
15. Is a loan facility available under Postal Life Insurance(PLI)?
16. Can one continue the PLI policy if one quits the government/retire from service?
Alternatively, the premium may also be paid online at the customer portal https://pIi.indiapost.gov.in/CustomerPortal/PSLogin.action through debit/credit card, wallet, BHIM/UPI, and net banking. In addition he can register for NACH for SI payment automatically from his/her bank account every month
Customer Portal offers a convenient any-time and any-where premium payment option to policyholders and allows policyholders to view the status of their policies on a real-time basis.
19. What will be the surrender value of PLI/RPLI policy?
20. How are claims settled in PLI/RPLI policies?
.
21. Can an appeal be preferred against the rejection of the death claim in PLI / RPLI?
Yes. An appeal may be preferred by the claimant against rejection of the death claim to the next higher authority in the Department of Posts.
22. How can a policyholder update her/his mobile number and e-mail id in PLI/RPLI policy?
23. Will the policyholder be required to place any request in case of voluntary retirement/resignation/retirement to pay their future premia in cash if their current mode of payment is pay recovery?
25. Can the repayment of the loan be made via online mode through the customer portal?
Yes
26. If the mode of payment of premia has been chosen as cash/cheque while purchasing the policy, does the policyholder need to give any written application for making the premium payment through online mode?