Introduction of a Welcome Letter while issuing PLI and RPLI Policy to the Policy Holders - Postalstudy | Post Office Blog | Materials for | Exams

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Introduction of a Welcome Letter while issuing PLI and RPLI Policy to the Policy Holders

Death Benefits :

On the death of Life Assured during the policy term, provided the policy is in-force, the sum assured plus accrued bonus and Terminal Bonus, if any will be payable and the policy gets terminated immediately. Death Benefit will be payable after recovering all outstanding premiums due and unpaid in the policy year in which death occurs.

Limits in Death Claims: If this policy has been taken under non-medical scheme and death of the insured occurs before completion of one year or after one year but before completion of two years or after two years but before completion of three years from the date of acceptance, then only 35% or 60% or 90% respectively of sum assured, as the case may be, along with bonus accrued shall be payable to the nominee(s)/ legal heir(s).

Maturity Benefits :

On survival of Life Assured till the end of policy term and provided that all the Premiums have been paid and the Policy is in force, the Basic Sum Assured plus accrued bonus declared from time to time will be payable at the end of the policy term. For example :-

Name of the Policy Policy holder's Age Sum Assured Bonus Rate EA Bonus per annum PLI Endowment Assurance 25 Rs. 10 lakh Rs.52/-* 52000

Maturity Age Duration of the policy Total Sum assured Total accumulated bonus * Maturity amount 60 35 Rs. 10 lakh Rs. 18.20 lakh Rs. 28.20 lakh

*Bonus is declared on yearly basis and amount in the table above is calculated on the bonus rate for the year in a PLI EA Policy.

Grace Period :

Premium shall be paid in advance on the first day of each month. However, grace period is allowed upto the last day of the month.

Freelook Cancellation :

The policyholder may get the policy cancelled within 15 days from the date of delivery of the acceptance letter/policy bond at the given address. On such cancellation premium paid by the policyholder will be refunded after deducting medical charges, if any, and proportionate premium till the date of application of cancellation.

Multiple Premium Payment Option :

PLI and. RPLI policyholders can pay their premium at any post office across the country. In case of salaried employees, recovery of premia from salary is possible. Alternatively, premium may also be paid online at the customer portal haps: / / through debit/credit card, wallet, SHIM/UPI and net banking. Customer Portal offers a convenient any-time and any-where premium payment option to policyholders and allows policyholders to view the status of their policies on a real time basis.

Rebate Allowed on PLI/RPLI Premium Payment :

Admissible rebate 1% and 2% shall be given for (i) 6 months and (ii) 12 months or more advance deposits in PLI respectively. Admissible rebate @ 0.5%, 1% and 2% shall be given for (i) 3 months, (ii) 6 months and (iii) 12 months or more advance deposits in RPLI respectively. In addition, for every Rs. 20,000/- sum assured, a rebate of Rs. 1 is allowed every month in EA/WLA/AEA policies. In case of Yugal Suraksha policy a rebate of Rs. 1/ - on policies of sum assured of Rs. 40,000/- and Rs.1/ - for every Rs. 10,000/ - of sum assured in excess of Rs.40,000/ - will be given.

Revival of lapsed policy :

If the premia are not paid for 6 months in case of policy not completed 3 years from the date of acceptance, (or) 12 months in case of policy more than 3 years from the date of acceptance, then the policy becomes lapsed. This needs revival to make it active. Revival may be made on any number of occasions during entire term of the policy, provided a period of consecutive 5 (five) years should not have passed from the date of first unpaid premium. After credit of due premium with interest of 12% per annum and a good health certificate, the policy can be revived. Revival amount may be paid in one lumpsum or in convenient instalments not exceeding 12 instalments.

Income Tax Rebate :

Income tax rebate is available under the section 80-C of Income Tax Act.

Nomination Facility :

Yes, nomination can be made for upto three (3) persons. A policyholder is advised to nominate person (s) to whom the sum assured shall become payable in the event of his/her death, so as to save his/her legal heirs the trouble and expense of obtaining legal title to the sum payable under the policy. If all

nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his/her heirs/legal representative on the basis of prescribed legal documents as the case may be.

Assignment of a Policy :

Policies may be assigned by the policyholder either for valuable consideration, loan against policy or by way of gift.

Conversion of a Policy :

Conversion of PLI/ RPLI policy means any alteration affecting the date of maturity of contract of insurance and includes not only alteration from WLA to EA but also ante-dating or post-dating of the maturity of an EA policy and consequent increase /decrease of premium. Loan Facility : Loan may be taken against (i) WLA and Convertible WLA policies after completion of 4 years and (ii) EA and YS policies after completion of 3 years. Loan is not available in AEA/ 10 year RPLI Policy and Children policy. Loan entitlement is calculated on a prefixed proportion of the surrender value. Interest @ 10 % per annum is calculated on a six-monthly basis. Further, interest is payable once in six months

Surrender of a Policy : Surrender facility is available after 3 years in case of WLA, EA, CWLA and YS policies. No surrender facility is available in case of AEA and Children policy. Surrender value depends on the surrender factor, type and term of policy. Surrendering any policy is always a loss. Bonus on the reduced sum assured is paid only if the policy is surrendered after 5 years. Provision of Appeal : An appeal may be preferred by the claimant against rejection of death claim to the next higher authority in Department of Posts.

Customer Grievance Mechanism :

A Policyholder can contact the nearest post office, Head Post Office (CPCs), office of Divisional Heads / Regional PMsG / CPMsG / CGM(PLI) for redressal of their grievances. Alternatively, policyholder can submit her/his grievance on CRM (Customer Relationship Management) portal http: / / in / or call on toll free number 18002666868.

Do's & Don'ts Do's

Keep the policy bond in a safe place. It will be required at the time of maturity or Survival Benefit. You will also require it if you are availing a loan or want to assign your policy.

Please keep informed your spouse/Parents/Children as to where the policy is kept.

Please Check your policy bond and see if your date of birth is correctly given therein.

Ensure that the nominees name is correctly incorporated in the policy bond. Always keep the nomination under your policy alive. It helps during unforeseen difficulties and saves your near and dear ones from avoidable hassles.

Always remember to quote the policy number everytime in your correspondence.

Always insist on a receipt as a proof of payment whenever you make payment at post office counters.

Review your insurance needs regularly for adequate cover.

When you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, maturity/ survival benefit, revival notice etc. may not reach you. Always clarify any doubts you have about your policy with the Postal Life Insurance.


Conceal relevant information or make any misstatements as it may lead to disputes at the time of a claim.

Fall prey to the spurious calls done in the name of Post office.

Miss or delay payment of your premium.

Failed to update your mobile / e-Mail ID in case of any change.

Abbreviations :


Postal Life Insurance

 Rural Postal Life Insurance

Whole Life Assurance

 Convertible Whole Life Assurance

Anticipated Endowment Assurance

Yugal Suraksha

Postmaster General

Chief Postmaster General

Chief General Manager

Central Processing Center

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