Postal Life Insurance: Low Premium, High Returns

If you are looking for a life insurance policy with high returns, Postal life insurance must be considered. It has a variety of policies and flexibility in the insured amount. Recently I got my life Insured with PLI and I'm going to tell you the way, you can get the policy.

Post office insures life through PLI only if the applicant has a regular income through employment in any government, semi-government, or private organization. Details of organizations whose employees are eligible are available on the link below.

http://www.postallifeinsurance.gov.in/innerpage/eligibility.php

 

There are 6 types of plans:

1. Whole Life Assurance (Suraksha)
2. Endowment Assurance (Santosh)
3. Convertible Whole Life Assurance (Suvidha)
4. Anticipated Endowment Assurance (Sumangal)
5. Joint Life Assurance (Yugal Suraksha)
6. Children Policy (Bal Jeevan Bima)

The first four plans insure the life of Policyholder, while the 5th one is for joint insurance of husband and wife. The 6th plan is for children above the age of 5 years and below 20 years. The eligible person can buy the Bal Jeevan bima policy on the name of his/her child.

Pros of PLI:

• Security
• Low premium
• High return
• Easy to understand policies
• loan facility
• Tax exemption
• Change of nomination facility
• The claim process is quick and easy
• Transfer, conversion, and surrender of a policy
• Revival after 6-12 unpaid payments
• Re-issue of duplicate policy document
• Rebate on half-yearly and yearly payments
• Passbook facility for easy track of installments 

Cons of PLI:

• No additional rider Facility
• Not everyone is eligible
• Limit of sum assured upto 50 Lakhs

Why I chose PLI?

I chose PLI because of some attractive features like high returns (when compared to most popular LIC) and flexible tenure of insurance. PLI give higher returns in short tenure plans (usually less than 20 years). For longer tenure plans LIC's returns surpass PLI. Find a detailed comparison here.

Why PLI is not so popular?

No one will tell you about the goodness of these policies because PLI agents are not paid high enough for the purpose like LIC or other agents of private companies. above this, they are regularly paid through their full-time employment in the post office. PLI agent will not come to your door to trick you or convince you of the insurance. If somebody wants to buy a policy, then please find an agent on your own. You can find an agent at your nearest post office or online here. Fix a meeting and discuss the different plans. Another reason may be that not everybody is eligible for the policy. This mostly covers regular employees. 

 Policy Buying Guide:

Premium calculator:

Before buying PLI policy download the Postinfo app from the play store and calculate your premium in different policies. To calculate the premium, Open the postinfo app>insurance portal>premium calculator

You need to fill up your age (as on the next birthday) and sum assured. Spouse age is required in the case of the Yugal Suraksha policy. By clicking on "Get quote" a premium table will open which describes monthly, quarterly, half-yearly, and yearly premiums for all available plans and policy durations. By altering Sum assured, you can alter premium amounts. Choose a suitable Plan, duration, and amount of insurance. 

Application form:

Now, you need to fill up the application form offline or online. For the Offline application, download the PLI proposal form. The same is available at post offices. fill it up, get verified by your employer, support it with required documents, and submit with your agent, along with the first premium. The agent must issue a receipt of premium with proposal number of the insurance policy. You can track the status of your proposal online. 

Commencement of Risk cover:

Risk cover is subject to acceptance of the proposal. Once the proposal is accepted, you will receive communication from the postal department regarding the commencement of risk cover. The communication may be through SMS or email or both. Passbook is issued and sent by post within 15 days after the acceptance. 

Payment of Premium:

 

 

The premium may be paid monthly, quarterly, half-yearly, or yearly. A rebate is given if premia are paid yearly. Payment can be made through cash, cheque, or online. Every time a payment is made, an entry must be made in receipt book (passbook) issued to the insurant. 

Online payment of premium:

Online payment can be made through the same 'Postinfo' app. Once the policy number is received, generate customer ID using the app. Customer ID will be generated upon filling up the details, that can be activated through a link sent to the registered email id. After 24 hours of activation, one can log in through the app as a customer. Online payment can be made by choosing your policy for which you are paying. Payments can be made by credit card, debit card, Net banking, UPI, paytm, or different wallets.

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