What Is Postal Life Insurance? What Are Its Benefits?
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Public employees have several government-backed insurance options available to them. One such scheme is the Postal Life Insurance (PLI) scheme. The Postal Life Insurance, or PLI, scheme is an insurance policy established in 1884 and is currently managed by the Department of Posts under the Government of India. The primary purpose of the scheme is to ensure the well-being of government employees through adequate life insurance coverage. With the PLI scheme, they can avail life insurance benefits at a much lower price as compared to policies available in the market.
Features of Postal Life Insurance
Here are a few features of PLI schemes:
1. Nomination Facility
The primary policyholder can enlist his/her beneficiaries as nominees under the scheme. Further, they can also make changes to this nomination list as and when needed.
2. Loan Facility
Policyholders can even take a loan against this scheme as PLI plans can be pledged as collateral. However, this can be done only after 3 years of maturity (for Endowment Assurance plan) and 4 years of the policy period (for Whole Life Insurance plan).
3. Policy Renewal
Policyholders can revive a lapsed Postal Life Insurance plan for government employees under the following conditions:
- A policy that is less than three years old and lapsed after six successive premium non-payments
- A policy that is more than three years old and lapsed after 12 successive premium non-payments.
4. Duplicate Policy
Policyholders can get a duplicate policy document if they lose/misplace/damage the original.
5. Policy Conversion
Policyholders can switch from the Whole Life Assurance plan to the Endowment Assurance Plan and vice versa.
Benefits of Postal Life Insurance
Some benefits of PLI schemes are listed below:
- Policyholders can avail tax benefits under Section 88 of the Income Tax Act, 1961
- The premium for PLI schemes is much affordable as compared to other insurance plans available in the market
- Policyholders can track payment of premium (for loan transactions) with the passbook facility
- Premium is paid either monthly, half-yearly, or annually
- If advance premium payments are made for a policy period of six months, policyholders can avail a discount worth 1 percent of the premium value
- If advance premium payments are made for a policy period of 12 months, policyholders can avail a discount of 2 percent of the premium value
- Policyholders can nominate beneficiaries under the scheme
- The PLI scheme is centralised, which makes the claims process easy and quick
Conclusion
Utmost care must be taken while applying for any insurance scheme. Protecting your loved ones from financial calamities is, after all, your biggest priority. Having a life insurance policy during these trying times has become an extreme necessity. With COVID-19 spreading like a wildfire in the country, it is wise to be protected financially to secure the future of your loved ones.
Also read- In India, What Are The Finest Single Premium Insurance Policies?
