Postal Life Insurance (PLI)
Why is insurance is necessary ?
• Insurance provides protection from the exposure to hazards and the probability of loss.
• Affords protection against financial loss.
• Restores the insured back to the same condition as before the loss.
• Compensation for the loss of income at the death of the insured.
• Financial protection against disability , death, or catastrophic illness
Who should be insured?
• Insurance should be subscribed by the earning members of the family.
• Those having dependants.
• Those having liabilities (loans), which cannot be repaid in the event of unfortunate demise of the insurant
History of PLI
• Postal Life Insurance (PLI) was introduced on 1st February 1884. It was a scheme of State Insurance mooted by the then DG of Post Offices, Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal employees
• Later it was extended to the employees of Telegraph department in 1888.
• In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives.
• It is the oldest Life insurer in this country.
WHY PLI?
❖ Eligible only for a selected group of People. So risk involved is very less.
❖ PLI (LOW PREMIUM : HIGH BONUS)
❖ No hidden charges, No advertisement costs
❖ No Stamp Duty
❖ Safety for money invested since its purely owned by Government of India.
❖ Income Tax exemption.
❖ High Bonus - per one lakh sum assured - 5,200 p.a. for EA policies (Santhosh) & Yugal Suraksha & Child Policy and - 4,700 p.a. for Anticipated Endowment (Moneyback–Sumangal) and 7,600 p.a. for Whole Life Assurance(Suraksha)
❖ Payment of premium - a) Salary recovery b) Payment of cash in Post Office c) Online payment through Debit/Credit card d) ECS facility
How come less premium but more benefits?
• No Hidden charges
• No Advertisement costs
• No Establishment charges
Postal Life Insurance- Eligibility
ELIGIBILITY: GOVERNMENT EMPLOYEES PROFESSIONALS AGE GROUP: 19 YEARS TO 55 YEARS SUM ASSURED: MIN : 20,000 - MAX : 50,00,000 IT'S A WELFARE SCHEME WITH TWIN BENEFITS (SAVINGS CUM INSURANCE)
Postal Life Insurance - plans
• Suraksha- Whole Life Assurance
• Santosh- Endowment Assurance
• Suvidha- Convertible whole life Assurance
• Sumangal- Money Back Policy
• Yugal Suraksha- Joint Life Policy
• Childrens’ policy- Child Policy
ENDOWMENT ASSURANCE(SANTOSH) - EA
▪ An Endowment Assurance
▪ Age – 19 to 55 years ▪ Maturity Ages (Premium Ceasing Ages) EA-35/ EA-40/ EA-45/ EA-50/ EA-55/ EA-58/ EA-60
▪ Loan facility after 3 years ▪ Risk Benefit : Total Sum Assured + Vested Bonus
▪ Bonus added up to Maturity/Claim
▪ Rate of Bonus – Rs.5200 per year per 1 lakhs
• Risk coverage from the date of acceptance of policy
• Nomination and Assignment facility
• Rebate of 1% / 2% for advance payments of 6/ 12 months for WLA/CWA/EA/AEA/CP policies
• Rebate of 10% / 50% of monthly premium for advance payment of 6/12 months for YS policy
