Bonus Rates of Postal Life Insurance Plans
Postal Life Insurance offers not only assured sums but also bonuses. These bonuses will accrue and be paid out either at maturity or to the beneficiary upon the demise of the policyholder.
There are a few rules when it comes to bonuses. For those plans that provide lump sum pay-outs on maturity or death, the bonuses accrued will be paid out given the policyholder does not take up a loan before the completion of 5 policy years.
Loan facilities are applicable on policies upon the completion of 3 policy years and if any loans are taken out during this period, the policy is void of all bonuses and if loans are taken out after the completion of 5 years, bonuses are reduced accordingly
Postal Life Insurance offers the following policies for central government and semi government employees which are Whole Life Assurance (WLA), Convertible Whole Life Assurance (CWA), Endowment Assurance (EA), Anticipated Endowment Assurance (AEA), Children Policy, and Joint Life Assurance or Yugal Suraksha (YS). All the above policies offer bonuses
Terms for bonuses payable on postal life insurance
- Bonuses will not be applicable if a policyholder borrows a loan from the policy within the first 5 years of the policy term.
- Proportionate bonuses are provided on the reduced sum assured if a policyholder borrows a loan from the policy after the completion of the first 5 years of the policy term.
Below are the details of the bonuses payable along with the benefits under each of the postal life insurance plan types:
Postal Life Insurance plan type | Bonus rate |
Whole Life Assurance (Suraksha) | Rs.76 per Rs.1,000 |
Convertible Whole Life Assurance (Suvidha) | Rs.76 per Rs.1,000 |
Endowment Assurance (Santosh) | Rs.52 per Rs.1,000 |
Joint Life Assurance (Yugal Suraksha) | Rs.52 per Rs.1,000 |
Anticipated Endowment Assurance (Sumangal) | Rs.48 per Rs.1,000 |
Children Policy (Bal Jeevan Bima) | Rs.52 per Rs.1,000 |
Whole Life Assurance (Suraksha)
o An assured amount with accrued bonus is provided at age 80 or to legal representatives if the insured passes away before age 80.
o Minimum age: 19, Maximum age: 55.
o Sum Assured: Rs.20,000 - Rs50 lakh.
o Loan facility after 4 years, surrender after 3 years.
o Last declared bonus: Rs.76 per Rs.1000 sum assured per year.
Convertible Whole Life Assurance (Suvidha)
o Whole Life Assurance convertible to Endowment Assurance after 5 years.
o Minimum age: 19, Maximum age: 55.
o Sum Assured: Rs.20,000 – Rs.50 lakh.
o Loan facility after 4 years, surrender after 3 years.
o Last declared bonus: Rs.76 per Rs.1000 sum assured per year (if not converted).
Endowment Assurance (Santosh)
o Assured amount with bonus at a predetermined age or to legal representatives if the insured passes away earlier.
o Minimum age: 19, Maximum age: 55.
o Sum Assured: Rs.20,000 – Rs.50 lakh.
o Loan facility after 3 years, surrender after 3 years.
o Last declared bonus: Rs.52 per Rs.1000 sum assured per year.
Joint Life Assurance (Yugal Suraksha)
o Policy for married couples providing lifetime cover.
o Minimum age: 21, Maximum age: 45 (both spouses).
o Sum Assured: Rs.20,000 – Rs.50 lakh.
o Loan facility after 3 years, surrender after 3 years.
o Last declared bonus: Rs.52 per Rs.1000 sum assured per year (if not converted).
Anticipated Endowment Assurance (Sumangal)
o Money-back insurance policy with benefits at regular intervals.
o The minimum age is 19 years, the maximum age at entry is 40 for a 20-year term insurance, and the maximum age at entry is 45 for a 15-year term policy.
o Terms: 15 or 20 years.
o Last declared bonus: Rs.48 per Rs.1000 sum assured per year.
Children Policy (Bal Jeevan Bima)
o Life insurance policy for children.
o Child age: 5-20 years, Parent age: less than equal to 45 years.
o Sum Assured: Rs.3 lakh or parent's sum assured, whichever is less.
o Premium waived if parent passes away, full sum paid on term completion.
o Last bonus rate: Rs.52 per Rs.1000 sum assured per year.
Who is eligible to apply for PLI?
The postal life insurance scheme now covers employees of the following departments:
- Central Government
- State Government
- Local Bodies
- Defence Services
- Paramilitary forces
- Government-aided Educational Institutions
- Public Sector Undertakings
- Reserve Bank of India
- Nationalised Banks
- Financial Institutions
- Employees of all the scheduled commercial banks
- Autonomous Bodies
- Extra Departmental Agents in Department of Posts
- Employees Engaged/Appointed on Contract basis by central/state government where the contract is extendable
- Employees of Credit Co-operative Societies and other Co-operative Societies registered with the Government under the Co-operative Societies Act and partly or fully funded from the central/state government/RBI/SBI/Nationalised Banks/NABARD and other such institutions notified by the Government
- Employees of deemed Universities and educational institutes accredited by recognized bodies such as National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India, etc.
- Employees (teaching/non-teaching staff) of all private educational Institutions/schools/colleges, etc. affiliated to recognized Boards (recognized by Centre/State Government) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open School, etc.
- Employees of listed companies of NSE (National Stock Exchange) and Bombay Stock Exchange (BSE) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, Infrastructure Sector, etc., where employees are covered for Provident Fund/Gratuity and/or their leave records are maintained by the establishment.
- Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt/Private Hospitals, etc.), Engineers (including Engineers pursuing Master’s/Post Graduate degree after having passed GATE entrance test), Management Consultants, Chartered Accountants registered with the Institute of Chartered Accountants of India, Architects, Lawyers registered with Bar Council of India/States, Bankers working in Nationalised Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, scheduled commercial banks, including Private Sector Banks, etc.
FAQs on Bonus Rates of Postal Life Insurance Plans
- Can Postal Life Insurance (PLI) be compared to other policies?
PLI has a lower premium than other life insurance options available on the market. And choosing PLI over other life insurance policies is primarily motivated by that. Furthermore, PLI offers a bonus rate of 7% or higher. Conversely, the bonus rates on other life insurance contracts are lower.
- Is it possible to get postal life insurance online?
Indeed. You can purchase a policy online even if you are not currently a PLI client. Customers can go to the India Post website to purchase Postal Life Insurance online.
- How is the PLI determined?
The individual's age, health, and the extent of coverage are taken into consideration when calculating the postal life insurance premium. The individual's age is the first consideration. The risk to your life increases with age, which is why insurance premiums increase. Your health is the second factor.
- What are the postal life insurance scheme's terminal bonus rates?
PLI gives the policyholder a terminal bonus of Rs.20 per Rs.10,000 subject to a maximum of Rs.1,000 for Endowment Assurance and Whole Life Insurance policies with policy terms of 20 years and above.
- How can I find out if my postal life insurance coverage is active?
By visiting the official website of India Post you can find out the status of a postal life insurance policy. You must use the necessary login information and your registered email address to log in. You can then view the current status of your life insurance policy
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