Benefit of Postal life insurance for govt employees
Benefit of Postal life insurance for govt employees
Over time, this scheme has made a lot of progress where the number of policies with this scheme in the initial days i.e. in year 1884 was in few hundreds, at present More than 43 lakhs under the policies are in place.
Because now under this scheme not only the employees of Post and Telegraph Department but also Central and State Governments, Central and State Public Sector Undertakings, Universities, Government Aided Educational Includes employees of institutions, nationalized banks, local bodies, etc.
It has also provided insurance facilities to officers and employees of Defense Services and Para-Military Forces. Apart from the single insurance policies, also manages the Group Insurance Scheme for the Additional Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.
The plan provides an exemption to the insurer under section 8(c) of the Insurance Act of 1938 and also under section 44(d) of the LIC act, 1956. has been given.
Postal Life Insurance
Talking about postal life insurance, it mainly offers seven types of plans, which we will briefly describe 3 policies.
Whole Life Insurance
PLI This plan is also known as Suraksha. It is a plan where the Bonus and Sum Assured, earned after the death of the insurer, is given to the nominee or legal heir.
The minimum age to enter the plan is 9 years, and the maximum age is 55 years. And ch. Under this plan, the minimum sum assured is Rs 20000, and the maximum sum assured is Rs 10 lakh.
This type of policy can be converted ie the first Endowment Insurance Plan after the completion of one year and before the age of the insurer becomes 57 years.
The loan facility under this plan will be available to the policy after the completion of four years, and after the completion of three years, the insurer can also surrender the policy.
This plan is also known as Santosh, the insurer proposer is given an assurance of getting the Sum Assured plus accrued bonus till he attains a pre-determined age of maturity. In case of unforeseen death of the insurer, the sum assured and the bonus accrued will be payable to the nominee or legal heir. Sh. The minimum age to enter this plan is 9 years, and the maximum age is 55 years.
The minimum sum insured is rupees twenty thousand and the maximum sum insured is rupees ten lakhs. The policy becomes eligible for a loan after the completion of three years of the policy.
If the loan against the policy or the policy is surrendered before the completion of five years, then the insurer will not get any bonus.
Convertible Whole life Insurance
If we talk about the features of this scheme, its features are similar to the endowment assured. After five years, this policy can be converted into endowment assured. The insurer should not be more than 55 years at the time of change.
If the conversion option is not exercised for six years then the policy will be treated as Whole Life Assured. A loan facility is also available in this plan, and the policy surrendered after three years. The insurer will not be eligible for the bonus if the loan is taken or the policy is surrendered before five years.
Joint life insurance
This plan is a Joint Life Endowment Assurance in which one spouse is a student. Will be considered eligible for the policy. There is a provision to provide life insurance coverage to both husband and wife with only one premium. All other features are the same as in Endowment Policy.
Benefits of Postal Life Insurance
According to the official website of Postel Life Insurance, currently, there is power in the market of life insurance. There is a scheme that compared with other insurance products available in the market gives high returns at low premiums.
That is, it is a bonus-giving scheme.
For example- the premium of PLI’s endowment policy is 26% to 36% less than that of LIC’s whole life insurance policy, but it depends on the age of entry into the policy.
Similarly, PLi’s endowment policy is cheaper by up to 6%. The bonus earned under postal life insurance can also be 7% or more than that of LIC. According to the official website of PLI, private insurance companies who have started life insurance business 2 to 3 years ago, Till now the bonus has not been declared, while the bonus is being paid from the first year under AK. Apart from this, some of the main benefits accruing to the insurer are as follows.
- Facility to change nomination is available to the insurer.
- On completion of three years in case of endowment insurance, 4 years in the case of whole life insurance, the insurer can also apply for a loan against the policy.
- Facility for assignment of the policy to any financial institution for availing loan.
- The facility of the revival of the lapsed policy is available.
- If the term of the policy is less than three years, the policy will lapse in case of non-payment of 6 premiums, for a term of more than three years, the limit is 12 unpaid premiums.
- Under Postal Life Insurance, if the bond of the original policy is burnt, torn, twisted, or lost, then the facility of issuing a duplicate policy bond is also available in place of it.
- Facility to convert Whole Life Insurance into Endowment Assurance and conversion of Endowment Assurance to other Endowment Assurance is also available as per rules.