Understanding PLI and RPLI Premiums and Bonus Structure
Download PLI RPLI Premium & Bonus Table 2024 in PDF
Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) are insurance schemes offered by the Department of Posts, Government of India, catering to the insurance needs of people from all walks of life. These schemes not only provide life insurance cover but also offer attractive investment opportunities with reasonable premiums and bonus structures. In this article, we delve into the premium and bonus tables of PLI and RPLI to help you understand these schemes better.
Premium Tables:
The premium payable under PLI and RPLI depends on various factors such as the age of the insured, sum assured, and type of policy. Premium tables provide a detailed breakdown of the premiums payable for different age groups and sum assured amounts. Here's a simplified explanation of how premium tables work:
Age Group Classification: Premium tables categorize individuals into different age groups, typically ranging from 19-55 years in five-year increments. The premium rates increase with age, reflecting the higher risk associated with insuring older individuals.
Sum Assured Variation: Premiums also vary based on the sum assured chosen by the policyholder. Higher sum assured amounts generally result in higher premiums.
Policy Type Differentiation: PLI and RPLI offer various policy types such as Endowment Assurance, Whole Life Assurance, Convertible Whole Life Assurance, Anticipated Endowment Assurance, and Child Protection Plan. Each policy type has its premium table outlining the premiums payable under different scenarios.
Term of the Policy: The term of the policy chosen by the insured also influences the premium amount. Longer policy terms may result in lower annual premiums spread over a more extended period.
By referring to the premium tables provided by PLI and RPLI, individuals can accurately determine the premium amount payable for their desired sum assured, age group, and policy type.
Bonus Structure:
One of the key attractions of PLI and RPLI is the bonus offered to policyholders, which enhances the maturity or surrender value of their policies. Bonuses are declared annually and are a percentage of the sum assured. Here's how the bonus structure typically works:
Types of Bonuses: PLI and RPLI offer two types of bonuses: Simple Reversionary Bonus and Final Additional Bonus.
Simple Reversionary Bonus (SRB): This bonus is declared annually as a percentage of the sum assured and accumulates over the policy term. It is payable on maturity, death, or surrender of the policy.
Final Additional Bonus (FAB): FAB is a one-time bonus payable on the maturity or surrender of the policy, provided the policy has completed a certain minimum term. It is declared based on the company's financial performance and surplus.
Calculation of Bonuses: The bonuses declared by PLI and RPLI are calculated based on the experience of the insurance fund, investment returns, and other relevant factors. Policyholders can track the declared bonuses through annual statements provided by the insurance company.
Impact on Policy Value: Bonuses significantly enhance the policy's maturity or surrender value, providing policyholders with attractive returns on their investment. The accumulation of bonuses over the policy term contributes to the overall financial security provided by PLI and RPLI.
Understanding the premium and bonus tables of PLI and RPLI is essential for making informed decisions regarding insurance coverage and investment planning. By studying these tables and consulting with insurance experts, individuals can select policies that best suit their financial goals and risk tolerance. PLI and RPLI continue to be trusted avenues for securing the financial future of millions of individuals across India, offering reliable insurance protection and investment opportunities.
