Postal Life Insurance is insurance coverage provided to all States and Central Government employees, nationalized banks, and various public sector enterprises. Purchasing postal life insurance works out much cheaper than any other insurance provided by private sector enterprises.
In this article, we have covered the main things you need to know about postal life insurance.
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What is a Postal Life Insurance?
This is the insurance coverage offered by the Department of Posts, Government of India. It was introduced in 1884 as a means of providing welfare to Government employees. Today, postal life insurance has grown manifold and is a common option chosen by people who are not employed in the Government sector.
Benefits of Postal Life Insurance
With innumerable private sector companies providing insurance in India, postal life insurance is yet to keep pace with them. However, they provide a lot of benefits to policyholders which are:
- They attract tax benefits similar to other life insurance policies.
- Money can be transferred from anywhere across India.
- The coverage starts as soon as the policy is accepted.
- They are flexible. They can be converted easily from whole life insurance to endowment assurance.
- Once an endowment assurance policy reaches 3 years of completion and 4 years in the case of whole life insurance, loans can be availed on them.
- The penalty for delay in premium is very low – Rs 1 per Rs 100 of sum assured. The penalty is taken per month.
- Changing nominations in the policy can be done easily.
- The policy can be assigned to any financial institution for taking loans.
How to Buy
Postal Life Insurance can be bought easily online both by existing customers of the postal department and new customers. The same can be purchased through the following easy steps:
- Log Onto www.postallifeinsurance.gov.in
- Go to the tab ‘Purchase a Policy’.
- Select the suitable product and coverage you want to choose.
- Fill in personal details, employment details, medical information, and other information.
- Then pay the first premium.
- Upon payment of the first premium, a proposal is immediately generated.
- Take a printout of the proposal and visit the nearest post office with the proposal requests and other documents as will be informed to you while purchasing the policy.
- The list of documents can be viewed in the ‘Tools and Utility – Documents required’ tab.
Things to keep in mind while Purchasing
Here are a few things that you need to remember:
- It is not available in all the post offices in India. Select post offices have a PLI division, which can offer insurance.
- Although the insurance can be purchased online, the procedure is still not fully digitized. You have to visit a post office to complete the procedure.
- The minimum entry age is 19 years and the maximum is 55 years.
- The maximum sum assured is around Rs 50 lakhs.
- One has the option to choose monthly, half-yearly or annual premium payment options.
- Government employees can retain their policies even after leaving their job.
- The policies can be surrendered prematurely. The whole life assurance policy can be returned after the completion of 4 years while endowment assurance policies can be returned after 3 years.
The good thing about postal life insurance is that it comes with a Government guarantee. The Government at the end of the day takes action for the benefit of the people. Hence, postal life insurance has products that are extremely beneficial for everyone. The products range from whole life to joint life to endowment to children’s policy.
We suggest you go through the policy details carefully before investing. We hope you found this blog useful. To know more about insurance policies – both life and non-life, you can browse our website. ComparePolicy.com