If you have already a Postal Life Insurance(PLI) policy, you must know some clarifications related to Postal life insurance issued from time to time and other important points.
Q- Whether benefits of PLI are available to Graduates/ Diploma holders from a foreign university
Yes- If any person holding a graduate degree/diploma from a foreign university is recognized as an equivalent graduate degree/ diploma by the Association of Indian Universities (AIU).
Q- Whether new PLI proposal of Graduates/ Diploma holders in which PLI customers provide Final year Marks instead of Degree or provisional passing certificates can be accepted?
Yes- PLI proposals may be accepted based on a provisional certificate or final year mark sheet subject to fulfillment of all other/ prevailing conditions issued vide PLI directorate OM No. 25-01/2022-LI dated 01.12.2022.
Q- Can NRI take PLI policy?
No, The PLI scheme shall cover all persons, male or female, who permanently reside in rural areas and ordinarily residents in India to the exclusion of Foreigners and Non-Resident Indians.
Q- How to deposit PLI Premium if some policyholder proceeds on Foreign service in India or proceeds on long leave outside India?
When the insured person is on Foreign Service in India or proceeds on leave out of India, he may arrange payment of premia in cash at any Indian post office or online payments.
Q In case the PLI Policyholder is Abroad and unable to submit the surrender Request form ?
In case the PLI policyholder is abroad/foreign and unable to submit the request form check the detailed process here.
Q- Is postal life insurance for everyone?
No, however recently PLI has extended their clientele, and now mostly professionals and degree holders in addition to Govt. employees are eligible for PLI.
Q-Is PLI maturity tax-free?
- The sum received under a life insurance policy (other than Unit Linked Insurance Plans – ULIPs) issued before April 1, 2023, remains exempt from tax under section 10(10D) regardless of the premium amount.
- For policies issued on or after April 1, 2023, the maturity proceeds are exempt only if the annual premium for any year during the policy term does not exceed Rs. 5 lakh. This applies to the aggregate premium paid across all such policies (not each policy).
- If the annual premium for any year during the policy term exceeds Rs. 5 lahks, the excess amount and any income earned thereon will be taxable under “Income from Other Sources”.
- This exemption doesn’t apply to death benefits. The sum received on death remains tax-exempt irrespective of the premium amount.
- So if your policy/policies monthly premium is more than 41666 per month and the policy was purchased after 1st April 2023, then maturity value may attract tax subject to certain conditions.
Q- What are PLI death claim rules?
Q- Wat is the minimum tenure of PLI & RPLI policy?
| Policy Name | Policy Type | Minimum Tenure | Sum Assured Range |
| PLI: | |||
| Santosh Endowment Assurance | Endowment | 5yrs , however, the maturity period starts at age 35yrs | Rs. 20,000 – Rs. 50,00000 |
| Suraksha Whole Life Assurance | Whole Life | Lifelong | Rs. 20,000 – Rs. 50,00000 |
| Suvidha-Convertible Whole Life Policy | Whole Life (convertible) | 5yrs may convert in EA | Rs. 20,000 – Rs. 50,00000 |
| Yugal Suraksha (Joint Life Cover for Spouses) | Endowment | 5 yr- | Rs. 20,000 – Rs. 50,00000 |
| PLI Child Policy | Bal Jivan Bima | 5yrs | Rs. 20,000 – Rs. ,300000 |
Q- Which is better PPF or PLI?
Postal Life Insurance and Public Provident Fund (PPF) have different features that not only help you secure the future of yourself and your loved ones but also provide a rebate in income tax under section 80 C. However you may check in detail PLI (Postal Life Insurance ) Comparison Chart | PLI V/s Post Office Savings Schemes (PPF/SSA/RD).
Q- Can I withdraw money from PLI?
Yes, subject to certain conditions you can prematurely close or surrender your PLI policy and withdraw money from PLI, here you check the details guide on the withdrawal of money from PLI.
Q- Which is better PLI or SIP?
Choosing between PLI and SIP:
- Life insurance needs: If your primary concern is securing your loved ones financially in case of your death, PLI offers guaranteed life cover. However, consider affordability and revise your insurance needs regularly.
- Investment goals: If you aim for wealth creation and potentially higher returns, SIP in mutual funds might be better. Weigh the risk involved with your risk tolerance and investment horizon.
- Financial situation: Analyze your income, expenses, and existing investments before making a decision. Both PLI and SIP require commitment and affordability.
Q- What is the PLI interest rate?
PLI offers a Bonus every year which accumulates and is paid at the time of maturity, however, the PLI interest rate on the loan available against your PLI policy is 10% pa.