Postal Life Insurance (PLI) was initiated in 1884 and is one of the most reliable insurance providers in India. GRAMA SANTOSH Rural Postal Life Insurance Scheme is an endowment assurance plan and is the ideal choice for people looking for the dual benefit of insurance and investment. In this scheme, the insured is offered an assurance to the limit of sum assured and the bonus till the policyholder attains an age, that is pre-determined. In the event death of the policyholder, the nominee will be paid the sum assured along with the bonus. Since this policy not only offers the sum assured to the policyholder’s family in case of his untimely death but also guarantees a lump sum at the desired age, GRAMA SANTOSH Rural Postal Life Insurance Scheme is best suited for people of all age groups and socio-economic background.
Eligibility Criteria for GRAMA SANTOSH Rural Postal Life Insurance Scheme
|People Eligible for Application||Employees of the organizations mentioned below are eligible to apply for PLI policy.
|Minimum Age at Entry||19 years|
|Maximum Age at Entry||45 years|
|Age Limits for Premium Ceasing||35, 40, 45, 50, 55, 58 and 60 years|
|Maximum Sum Assured||Rs. 10 lakh|
|Minimum Sum Assured||Rs. 20, 000|
Key Features of GRAMA SANTOSH Rural Postal Life Insurance Scheme
GRAMA SANTOSH Rural Postal Life Insurance Scheme comes packed with an array of advantages that makes it one of the most preferred endowment assurance plans in the market. Given below are some of the key features of this Scheme.
|Plan Type||Endowment Assurance Type|
|Premium Paying Terms||Annual, half yearly, quarterly, monthly and through salary deductions|
|Maturity Benefit||The insured is offered the sum assured along with the accrued bonus if he attains the predetermined age of maturity.|
|Death Benefit||In case of unexpected death of the insured. The nominee will receive death benefits in form of full sum assured along with the accrued bonus.|
|Premium Payment Frequency||Monthly|
|Bonus Options||Current bonus is fixed at Rs. 58 per thousand of sum assured per year. However, bonus rates are subject to frequent change and is based on Corporation’s performance.|
|Sum Assured||Minimum sum assured is Rs. 20, 000 while the maximum sum assured is Rs. 10 lakh|
|Grace Period||If the policyholder forgets to pay the premium for a particular month, he can pay the same along with the next month’s premium by paying a fine of Rs. 1 per Rs. 100 of sum assured. Also, the policy will lapse if premium is not paid for 6 continuous months or 12 months depending on when the policy has been brought into force.|
|Alterations||No alteration from endowment assurance plan to other classes or vice versa will be allowed. Also, no alterations in sum assured or term for endowment assurance policy will be allowed once the policy is initiated.|
|Policy Revival after Lapse||Revival of GRAMA SANTOSH Rural Postal Life Insurance Scheme due to non payment of premium is permitted after payment of premium arrears along with an interest of 12% per annum and production of good health certificate. However, revival of a policy after lapse is subject to select criteria under PLI rules.|
|Medical Examination Requirement||All PLI insurance schemes have mandatory medical examination requirement. However, no medical examination is required if the age of insured is less than or equal to 35 and the sum assured is less than or equal to Rs. 5 lakh.|
|Coverage Offered by the policy||Insurance Cover starts from the date of insurance.|
Benefits and Advantages of GRAMA SANTOSH Rural Postal Life Insurance Scheme
GRAMA SANTOSH Rural Postal Life Insurance Scheme offers a wide range of features that benefit the policyholder immensely. A product that serves the purpose of both investment and insurance, this Scheme’s benefits are outlined below.
- Surrender Value
Surrender Value represents the amount that is payable to the insured after the foregoes the benefit of the endowment policy and surrenders the policy for an immediate cash payment. Surrender value depends on the term of the policy and surrender factor. GRAMA SANTOSH Rural Postal Life Insurance Scheme can be surrendered after 36 months the insured will get full amount paid plus bonus (which will be taken into account only after 5 years for calculating surrender value on paid up value).
- Modes of Premium Payment
The premium can be paid through cheque. Also, all policyholders will receive a receipt book using which they can deposit the premium amount in any Post Office. The premium can also be paid online for select type of policies.
- Income Tax Rebate
Income Tax rebate will apply for premiums paid towards Post Office Life Insurance under Section 80C of Income Tax Act.
- Loan Options
Loan against GRAMA SANTOSH Rural Postal Life Insurance Scheme Policy as security can be obtained by all policyholders. Loan facility can be availed on all policies after completion of three years. However, the policy is not eligible for bonus if it is assigned for loan before completion of 5 years.
- Rebate on Premium Amount
GRAMA SANTOSH Rural Postal Life Insurance Scheme policyholders get a rebate of 2% if the annual premium is paid in advance and a rebate of 1% of the premium for six months is paid in advance.
How GRAMA SANTOSH Rural Postal Life Insurance Scheme Works
Under GRAMA SANTOSH Rural Postal Life Insurance Scheme, the insured is given a guarantee to the limit of sum assured and the bonus accrued till the insured attains the age of maturity which will be decided before the policy comes into force. In case the insured dies unexpectedly, the nominee or the legal heir will be paid the entire sum assured along with accrued bonus.
Premiums Payable for GRAMA SANTOSH Rural Postal Life Insurance Scheme
The premium amount for GRAMA SANTOSH Rural Postal Life Insurance Scheme depends on a variety of factors like term, sum assured and the insured’s health condition. For people under the age of 35 with no specific ailments, the premium will be considerably lower than that of an elder person with health problems. A variety of factors are considered by the Postal Department before fixing the premium for Premiums Payable for GRAMA SANTOSH Rural Postal Life Insurance Scheme.
No riders are available for Premiums Payable for GRAMA SANTOSH Rural Postal Life Insurance Scheme.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017