The Gram Sumangal Rural Postal Life Insurance Scheme, also referred to as the Anticipated Endowment Assurance is a money-back scheme. The policy is ideal for individuals who have periodic requirements of cash for their short-term financial liabilities. This scheme is targeted to provide insurance cover to the people belonging to rural areas. There are two types of plan under this scheme – 15 years term and 20 years term.
Eligibility Conditions for Gram Sumangal
|Minimum entry age||19 years|
|Maximum entry age||45 years – 15 year term 40 years – 20 year term|
|Eligible employees||Employees of:
Key Features of Gram Sumangal
The important features of the Anticipated Endowment Assurance or the Gram Sumangal scheme are given in the table below:
|Plan type||Anticipated Endowment Plan|
|Premium paying terms||Monthly|
|Mode of payment||Through the premium receipt book or cheque.|
|Funded By||100% centrally funded|
|Medicals||Sum assured exceeding Rs.25,000 requires applicants to undergo medical examination by an authority prescribed.|
|Loan facility||Not available. Loan may be granted against the security of the policy, provided the policy has completed 3 years.|
|Assignment facility||Assignment facility is available. Policy can be assigned to any financial institution for the purpose of loan.|
|Nomination||Nominations are accepted in this policy.|
|Minimum sum assured||Rs.10,000|
|Maximum sum assured||Rs.5,00,000|
|Grace period||In case of missed premiums, an individual will have to a minimum of Rs.1 per 100 of sum assured amount as fine. The individual can make the payment in the succeeding month.|
|Surrender value||No surrender value granted under this scheme.|
Benefits of Gram Sumangal
- Survival Benefit: The survival benefit under the Gram Sumangal scheme is cleared in periodic payments. The following table indicates the survival benefit payable under the policy scheme:
|15 year term Gram Sumangal||20 year term Gram Sumangal||Survival benefit|
|6 years completion||8 years completion||20% of sum assured|
|9 years completion||12 years completion||20% of sum assured|
|12 years completion||16 years completion||20% of sum assured|
|15 years completion||20 years completion||40% of sum assured|
- Death Benefit: In case of the death of the assured individual during the term under the Gram Sumangal, the total sum assured and the accumulated bonus is payable to the nominee without any adjustments from the already made periodical payments towards survival benefit.
- Maturity Benefit: On maturity of the policy term, the insured receives the sum assured along with the earned bonuses, if any.
- The assured is covered from the day the insurance scheme proposal is accepted.
How Gram Sumangal Works
The Gram Sumangal or the Anticipated Endowment Assurance works in two kinds of plans:
Plan 1: 15 year term policy
Plan 2: 20 year term policy
The sum assured under these plans are paid in four installments throughout the term. In case the assured meets with death, the nominee receives the sum assured with the accumulated bonus amount, if any. The payment does not involve any adjustment from the previously made survival benefits payments. In case the premium is ceased prior to its maturity date, the reduced sum assured is granted, only if there has been no missed premiums for at least three years, only at the end of the policy’s term date.
No riders available under this policy scheme.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017