Postal Life Insurance for Central Government Employees
Postal Life Insurance is one of the oldest insurers in India and provides various welfare schemes to people working as public servants for the Central Government. There are various types of schemes which one can avail based on his/her requirements.
Postal Life Insurance (PLI), established in 1884, is a government-guaranteed life insurance scheme tailored for Central Government employees and other eligible groups. It offers low premiums with high bonuses, helping policyholders secure their family’s financial future in case of death or receive lump sum benefits upon policy maturity. Eligible policyholders include Central Government staff, defense personnel, Reserve Bank of India employees, Public Sector Undertaking (PSU) staff, state government employees, local bodies, cooperative societies, nationalized banks, and government-aided educational institutions.
Eligibility for Postal Life Insurance
- Central Government employees
- Defence Services personnel
- RBI employees
- Public Sector Undertakings staff
- State Government and local body employees
- Employees of nationalized banks, cooperative societies, autonomous bodies, educational institutions supported by the government
- Physical handicap applicants eligible with premiums depending on handicap severity
- Children of policyholders are covered, with a maximum of two children per family
The minimum age to enter is 19 years, and the maximum age is 55 years. Salaried private sector employees are not eligible. Retired or resigned employees can continue their policies by paying premiums via any post office.
Types of Postal Life Insurance Policies
Policy Type | Eligibility, Age & Sum Assured | Key Features, Loan Eligibility & Bonus Rates (Rs./₹ 1000) |
Whole Life Assurance | Age 19-55 yrs; Sum assured Rs. 20,000 - 50 Lakh | Pays sum assured + bonuses on maturity/death. Convertible to Endowment after 1 year (if age < 57). Loans after 3 years. No bonus if loan < 5 years. Bonus: Rs. 76 (Whole Life) |
Endowment Assurance | Age 19-55 yrs; Sum assured Rs. 20,000 - 50 Lakh | Sum assured + bonuses at maturity; death benefit to nominee. Loans after 3 years, no bonus if loan < 5 years. Bonus: Rs. 52 |
Convertible Whole Life Assurance | Age 19-55 yrs; Sum assured Rs. 20,000 - 50 Lakh | Convert to Endowment after 5 years (if age ≤ 55). After 6 years, treated as Whole Life. Loan/surrender value after 3 years. Whole Life bonus initially, Endowment bonus after conversion |
Anticipated Endowment Assurance | Age 19-55 yrs; Sum assured Rs. 20,000 - 50 Lakh | Money-back policy with periodic payments in 15 or 20-year terms. Death benefit as lump sum (sum assured + bonuses). Bonus: Rs. 48 |
Joint Life Assurance (Yugal Suraksha) | Age 19-55 yrs; Sum assured Rs. 20,000 - 50 Lakh | Covers spouse under single premium; pay sum assured + bonuses on death. One spouse must be PLI eligible. Loans after 3 years. Bonus per Whole Life or Endowment plans |
Child Insurance Policy | Covers max two children; Sum assured Rs. 20,000 - Rs. 1 Lakh | Premiums based on age & coverage; no loans. N/A for bonus. |
Revival and Surrender
- Policy can be revived twice before becoming void.
- Revival period is 6 months for policies active under 3 years and 12 months for policies over 3 years.
- If monthly premiums are missed, late payments accepted with a fine of Rs. 1 per Rs. 100 sum assured.
- Loan interest is 10% per annum calculated semi-annually.
- Policies can be surrendered; surrender value depends on policy type, tenure, and surrender factor.
Premium Payment Options
- Premium payment possible via post office deposits, cheque, automatic salary deduction (ECS), or online portals.
- An online premium calculator is available to estimate premiums by entering age, policy type, sum assured, and maturity age.
Government Backing and Tax Benefits
- PLI is exempt under Section 118 C of the Insurance Act, 1938, and Section 44D of the LIC Act, 1956.
- Premiums and benefits are guaranteed by the Government of India.
- GST at 18% is applicable on premium payments since July 1, 2017.
- Tax benefits under Section 80C of the Income Tax Act may apply.
Customer Support and Policy Management
- Policyholders can check status online with their 6-digit policy number.
- Policies can be managed via India Post’s PLI portal after customer registration.
- Customer support available via toll-free number 1800 266 6868 and email plipg.dte@indiapost.gov.in (9 a.m. to 6 p.m. except Sundays and government holidays).
GST of 18% is applicable on life insurance effective from the 1st of July, 2017
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