Rural Postal Life Insurance
schism 2021
Hi Friends,
You can see about of Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population. As on 31.03.2017, we have more than 146 Lacs policies.
The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in the rural areas and low cost of operations.
The Committee had observed:
“The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas…..”
Benefits of Rural Postal Life Insurance
PLI is the only insurer in the Indian Life Insurance market today which gives the highest return (bonus) with the lowest premium charged for any product in the market.
👇 A PLI/RPLI policy holder may also get following facilities 👇
➤ Change of nomination.
➤ The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance.
➤ The facility of assignment is also available.
➤ Assignment of Policy to any Financial Institution for taking loan.
➤ Revival of his/her lapsed policy.
➤ Policy lapses after 6 unpaid premia if it remained in force for less than 3 years and after 12 unpaid premia if it remained in force for more than 3 years.
➤ Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or torn/mutilated.
➤ Conversion from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.
RPLI offers the following six types of policies
➤ Whole Life Assurance (Gram Suraksha)
➤ Endowment Assurance (Gram Santosh)
➤ Convertible Whole Life Assurance (Gram Suvidha)
➤ Anticipated Endowment Assurance (Gram Sumangal)
➤ 10 Year RPLI (Gram Priya)
Children Policy (Bal Jeevan Bima) Whole Life Assurance (Gram Suraksha)
This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years, or to his/her legal representatives or assignees on death of the insured, whichever occurs earlier, provided the policy is in force on the date of claim.
➤ Minimum & Maximum age at entry: 19-55 years
➤ Minimum Sum Assured ₹ 10,000; Maximum ₹ 10 lac
➤ Loan facility after 4 years
➤ Surrender after 3 years
➤ Not eligible for bonus if surrendered before 5 years
Can be converted into Endowment Assurance Policy upto 59 years of age of the insurant provided the date of conversion does not fall within one year of the date of cessation of premium payment or date of maturity.
Premium paying age can be opted for as 55,58 or 60 years
Proportionate bonus on reduced sum assured is paid if policy is surrendered
Last declared Bonus- ₹ 65/- per ₹ 1000 sum assured per year
Endowment Assurance (Gram Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre- determined age of maturity i.e 35,40,45,50,55,58 & 60 years of age.
➤ In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured with accrued bonus
➤ Minimum & maximum age at entry: 19-55 years
➤ Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
➤ Loan facility after 3 years
➤ Surrender after 3 years
➤ Not eligible for bonus if surrendered before completion of 5 years
➤ Proportionate bonus on reduced sum assured is paid if policy is surrendered after 5 years
➤ Last declared Bonus – ₹ 50/- per ₹ 1000 sum assured per year
Convertible Whole Life Assurance (Gram Suvidha)
➤ A Whole Life Assurance Policy with the added feature of an option to convert to
Endowment Assurance Policy at the end of five years of taking policy.
➤ Assurance to the extent of sum assured with accrued bonus till attainment of maturity age
➤ In case of death, assignee, nominee or legal heir paid full amount of sum assured with accrued bonus
➤ Minimum age & Maximum age at entry: 19-45 years
➤ Can be converted into Endowment Assurance after 5 years not later than 6 years of taking policy. If not converted, policy will be treated as Whole Life Assurance
➤ Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
➤ Loan facility after 4 years
➤ Surrender after 3 years
➤ Not eligible for bonus if surrendered before completion of 5 years
➤ Last declared Bonus- ₹ 65/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
➤ On conversion, bonus of Endowment Assurance will be payable
Anticipated Endowment Assurance (Gram Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 10 lacs, best suited to
those who need periodical returns. Survival benefits are paid to the insurant
periodically. Such payments will not be taken into consideration in the event
of unexpected death of the insurant. In such cases, full sum assured with
accrued bonus is payable to the assignee, nominee of legal heir.
➤ Policy term: 15 years and 20 years
➤ Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45 years for 15 years’ term policy
Survival benefits paid periodically as under: -
➤ 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with accrued bonus on maturity
➤ 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with accrued bonus on maturity
➤ Last declared bonus -₹ 47/- per ₹ 1000 sum assured per year
➤ 10 Years Rural PLI (Gram Priya)
➤ It is a short term money back scheme for Rural populace only
➤ Insurant is given life cover to the extent of Sum Assured for 10 years.
➤ Survival benefits are paid after 4 years- 20% after 7 years- 20%, and after 10 years – 60% with accrued bonus
➤ Minimum & maximum age at entry 20 – 45 years
➤ Minimum sum assured ₹ 10,000, maximum 10 lacs
➤ No interest is charged upto one year as arrears of premia in case of natural calamities like flood, drought, earthquake, cyclone etc.
➤ Last declared bonus ₹ 47/- per ₹ 1000/- sum assured per year.
➤ Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
➤ The scheme provides life insurance cover to children of policy holders
➤ Maximum two children of policy holder (parent) are eligible
➤ Children between 5- 20 years of age are eligible
➤ Maximum sum assured ₹ 3 lac or equal to the sum assured of the parent, whichever is less
➤ Policy holder (parent) should not be over 45 years of age.
➤ No premium to be paid on the Children Policy, on the death of policy holder (parent). Full sum assured and bonus accrued shall be paid on completion of term
➤ Policy holder (parent) shall be responsible for payment of Children policy
➤ No loan admissible
➤ Has facility for making it paid up, provided premiums are paid continuously for 5 years
➤ Surrender facility is not available
➤ No medical examination of child necessary. However, child should be healthy and risk shall start from day of acceptance of proposal
➤ Attract the rate of bonus applicable for Endowment policy (Santosh) i.e. last bonus rate is ₹ 50/- per ₹ 1000 sum assured per year
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