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PLI: Postal Life Insurance - Doubts and Clarifications

What is PLI?

PLI (Postal Life Insurance)  contract entered into by the Government through Post Offices to pay a given sum of money on the death of an individual to his nominee or himself, if he survives that period.

Who can purchase PLI policy?

Government and Semi-Government employees can purchase PLI policy.

Who is responsible for PLI? Shall we trust PLI schemes?

PLI is owned my Indian Government. So one can trust PLI compared to other private insurance organisations.


How to transfer a PLI policy from one post office to another post office?

The policy holder should apply to the Chief Post Master General through the Post Office where the policy stands or the Post office in which he desires to pay the premium.
The Post office will accept the application and send to the CPMG (PLI).


Who are all eligible persons to purchase a PLI policy?

The employees of following are eligible for PLI policy:
  1. Central Government
  2. Defense Services
  3. Para Military Forces
  4. State Government
  5. Local Bodies
  6. Educational Institutions/ Government-aided
  7. Reserve Bank of India
  8. Public Sector Undertakings
  9. Financial Institutions
  10. Nationalized Banks
  11. Autonomous Bodies
  12. Extra Departmental Agents in Department of Posts


Is PLI applicable for employee at private companies?

NO. But they can purchase RPLI - Rural Postal Life Insurance.

If one spouse is working in a Government Organization but the other is not, is there any scheme in PLI for both?

We have 'Yugal Suraksha' scheme under which both can jointly get a policy. After paying a little more premium, both can be covered under this assurance scheme.


Can one continue the policy if one quits the Government service?

One can continue by making payment at any one of the 1, 55,000 post offices throughout the country, even after quitting service.

Can I take loan base on PLI policies?

Yes, You can take loan (only personal loan, not home loan) on PLI policies once you complete four year premiums.

What are the terms on which loan can be availed? 

EA policies after 3 years from date of issue of policy
WLA policies after 4 years.
Interest 10% p.a. Calculated on six monthly basis
Loan entitlement is calculated on a prefixed proportion of these surrender value
Interest should be paid on(or) before 21st of due month (i.e. 6 monthly once)

What is meaning of surrender value of a policy?

"Surrender value" of a policy, means the amount that is payable to an assured, when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment.


Can one get the full amount paid with accrued bonus, if policy is surrendered prematurely?

  • Endowment Assurance policy can be surrendered after 36 months
  • WWLA policy can be surrendered after 48 months
  • Children policy can be surrendered after 60 months.
  • No surrender for AEA policy
  • Bonus will be taken into account after 5 years for surrender value calculation on the paid up value. But surrendering any policy prematurely is always a loss to the insurant. Hence, it is suggested not to go for surrender.
  • It is not a simple saving scheme but it aims to give risk coverage also. It provides immediate Insurance coverage from the date of acceptance. Full policy amount with accrued bonus will be given even if death occurs on the very next day of acceptance of the proposals for all bonafide cases.