Grama Suvidha Rural Postal Life Insurance Scheme

This is one of the policies under Rural Postal Life Insurance Scheme which is basically a convertible life insurance policy and can be converted by a policyholder based on his/her financial requirements. This plan has known to benefit people according to their needs
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If you are looking for a convertible whole life insurance policy, perhaps this rural postal life insurance scheme might be the most reliable that you would find. This is one of the top insurance products from Rural Postal Life Insurance and has been known to be very useful for people who have used it with great benefits and a name that they can bank upon. Some of the other major products from Rural Postal Life Insurance include Whole Life Assurance (GRAMA SURAKSHA), Endowment Assurance ( GRAMA SANTOSH), Anticipated Endowment Assurance (GRAMA SUMANGAL) and GRAM PRIYA which is a special scheme for Physically handicapped individuals.

Eligibility Criteria for Grama Suvidha Rural Postal Life Insurance Scheme

Here are the main eligibility criteria when it comes to applying for this whole life insurance scheme:

Minimum entry age 19 years and over
Maximum entry age 55 years and below
Minimum age at maturity Variable
Maximum age at maturity Variable
People Eligible For Application
  • Central Government
  • Defense Services
  • Para Military Forces
  • State Government
  • Local Bodies
  • Educational Institutions Government-aided
  • Reserve Bank of India
  • Public Sector Undertaking
  • Financial Institutions
  • Nationalized Banks
  • Autonomous Bodies
  • Extra Departmental Agents in Department of Posts

Key Features of Grama Suvidha Rural Postal Life Insurance Scheme

Some of the most important features of this life insurance scheme include:

Plan Type Convertible whole life insurance
Plan basis Individual
Premium paying terms Monthly, annual, half- yearly and quarterly premiums
Policy term Up to 60 years of age of the policyholder
Death Benefits In the event of the untimely death within the policy term of the policy, the nominated will be able to claim the sum assured along with bonuses that have been accrued.
Maturity Benefit If the individual survives the policy term, the policyholder will be able to claim the sum assured along with bonuses that have been accrued.
Bonuses RPLIs are said to have the highest returns in the market considering the low premium amounts payable.
Premium payment frequency The premiums have to be paid on a monthly basis.
No Medicals Most policies of RPLI require medical examinations or the non-medical policies, the maximum limit of Sum Assured is Rs.25,000/-, and maximum age is 35 years.
Policy revival The revival of his/her lapsed policy can be done. The policy lapses after 6 unpaid premiums if it remained in force for less than 3 years and after 12 unpaid premiums if it remained in force for more than 3 years, policy revival is possible under the decision of the postmaster or head of division. The Postmaster General/ Head of Division of the branch has the sole authority and discretion to accept the application of the policy revival. It is up to the postmaster general or the head of Division to also decide the fee required to pay for the revival of the policy.
Alterations Policy conversion is possible.
Nomination Nominations are accepted under this policy.
Sum Assured Minimum: Rs. 10,000. Maximum: Rs. 5 lakhs
Free Look Period There is not free-look period.
Grace Period If an individual has not paid their monthly premium on time, they have up to the end of the month, of the due date to pay the premium. A nominal late fee is charged for the same.
Policy coverage Death benefits and bonuses earned every month as returns
Loan Against Policy Loan against the policy can be taken after the individual has regularly paid their premiums for 5 years of successful premium payments.

Benefits and Advantages of Grama Suvidha Rural Postal Life Insurance Scheme

The following are the main advantages and features of this scheme:

  1. Death Benefit: In the event of the untimely death within the policy term of the policy, the nominated will be able to claim the sum assured along with bonuses that have been accrued.
  2. Maturity Benefits: If the individual survives the policy term, the policyholder will be able to claim the sum assured along with bonuses that have been accrued.
  3. Accrued Bonuses Payments: RPLIs are said to have the highest returns in the market considering the low premium amounts payable.
  4. Loan Against Policy: Loan against the policy can be taken after the individual has regularly paid their premiums for 5 years of successful premium payments.
  5. Income Tax Benefits: The Insurance policies offered through PLI have tax benefits which are predominantly under Section 80C which basically states that a policyholder having a policy issued on or before 31st March 2012 will be eligible to avail a tax deduction of 20% of the sum assured. For those who have availed a policy on or after 1st April 2012 will be eligible to avail a tax deduction of 10% of the sum assured.
  6. Revival: The revival of his/her lapsed policy can be done. The policy lapses after 6 unpaid premiums if it remained in force for less than 3 years and after 12 unpaid premiums if it remained in force for more than 3 years, policy revival is possible under the decision of the postmaster or head of division.
  7. Duplicate Policy Bond: With a simple application a Duplicate Policy Bond may be issued in case of the original Policy Bond is lost, burnt, torn or mutilated.
  8. Convertible: A policy holder can convert this policy from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.

How Grama Suvidha Rural Postal Life Insurance Scheme Works

This is a whole life insurance policy which basically means that the policy owner has entered into contract with the Government to be eligible to receive a given sum of money, on the death of an individual, to his legal representatives or assigns, or him or herself if he or she suvives the policy term. It also has the option for the policyholder to convert the policy, at the end of 5 years (with a grace period at the end of six years) from the date of commencement of risk, into an Endowment Assurance maturing at a specified age.

Premiums Payable For Grama Suvidha Rural Postal Life Insurance Scheme

The premium amounts are based on the overall health of an individual as well as his or her lifestyle habits. If the health conditions are good and no issues are detected, the premiums will be lower as compared to someone with a heart problem or one who is diabetic. Also a non-smoker would have to pay lower premiums. The person’s age as well as the amount assured are also considered by LIC to finally issue the premium amount payable.

Riders

No riders are mentioned for this policy.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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