Postal life insurance handles single insurance and group insurance policies. The postal life insurance scheme offers comparatively better returns than other insurance products. Postal department offers sum assured and accumulated annual bonus at the maturity of the policy and the announced annual bonus is Rs. 70 per Rs. 1000 sum assured for their endowment policies, since 2003.
Types of Postal Life Insurance Policies
Postal life insurance offer 7 types of life insurance policies and each type of policy has its own peculiarities and features.
Whole Life Assurance (SURAKSHA)
Whole life Assurance or Suraksha policy offer sum assured and accrued annual bonus payable to the nominee or legal heir after the death of the insured. This policy can convert to Endowment Assurance Policy after one year.
Minimum Age of Entry : 19 years
Maximum Age of Entry: 55 years
Minimum Sum Assured: Rs. 20000
Maximum Sum Assured: Rs. 10 Lakhs
Endowment Assurance (SANTOSH)
This policy offer sum assured and accrued bonus till the insured attain predetermined age of maturity. When unexpected death happened to the insured the nominee or legal heirs get the sum assured and accrued bonus. The minimum and maximum age of entry and minimum and maximum sum assured are same as Whole Life Assurance policy.
Convertible Whole Life Assurance (SUVIDHA)
Convertible Whole Life Assurance Policy is also like whole life insurance policy and can convert to Endowment Assurance after five years. But the age of such conversion should not be more than 55 years. If such conversion is not done within 6 years, the policy will be treated as Whole Life Assurance Policy. Minimum and maximum age of entry and minimum and maximum sum assured are same as Whole Life Assurance policy.
Anticipated Endowment Assurance (SUMANGAL)
Anticipated Endowment Assurance is named as SUMANGAL is a Money Back Policy with maximum sum assured of Rs. 5 Lakh. Periodical Money Back is the main feature of this policy and suitable for regular periodical policy. This Anticipated Endowment Assurance policy is for 15 years and 20 years term.
For 15 years policy the money back is given after 6 years, 9 years and 12 years at the rate of 20% of sum assured and at the maturity (End of 15th year) the remaining 40 % sum assured and the accumulated bonus will be given.
For 20 years policy the money back is given after 8 years, 12 years and 16 years at the rate of 20% of sum assured and at the maturity (End of 20th year) the remaining 40 % sum assured and the accumulated bonus will be given.
But if the unexpected death of the insured is happened before the maturity the full sum assured (without deducting the interim money paid as money back scheme) with accumulated bonus will be paid to the nominee or legal hires of the insured.
Joint Life Assurance (YUGAL SURAKSHA)
If any of the spouses is eligible for joining postal life insurance policy they can join this joint life insurance policy which cover the life of both the couples with one premium for both lives. All other features are same as Endowment assurance policy.
All these policies required compulsory medical checkup for a sum assured over Rs. 1 Lakh. But for Anticipated Endowment Assurance and Joint life insurance policy medical checkup is compulsory for any amount of sum assured.
Scheme for Physically handicapped persons
A Physically handicapped person also can join any of the abovementioned postal life insurance policies. But medical examination is compulsory to determine the nature and extent of handicap. The premium may be little bit high according to the nature of disability.
From 20th January, 2006 the postal life insurance started Children Policy to provide insurance cover for children. Maximum two children of a family can insure under this Children Policy.
Minimum Age of Child: 5 years
Maximum Age of Child: 20 years
Maximum Sum assured is Rs. 1 Lakh or the sum assured of the main insurance policy holder whichever is less. The age of main policy holder must not be more than 45 years when join the policy. The premium will be waived, if the death of main insurance policy holder occurred within the policy term and the full sum assured and accumulated bonus will be paid to the children when the term of the policy is completed. There is no loan facility available for children policy. No health check up of the child is required, but the child must be healthy at the time of opening the policy. Child policy also gets bonus just like endowment policy.
Generally Post office life insurance is helpful for government employees to getting insured and at the same time they can yield a good return than any other insurance policies. Postal life insurance has another set of policies named Rural Postal Life Insurance policy open for all. Rural life insurance are 6 type of polices such as (1) Whole Life Assurance ( GRAMA SURAKSHA) (2) Convertible Whole Life Assurance (GRAMA SUVIDHA) (3) Endowment Assurance ( GRAMA SANTOSH (4) Anticipated Endowment Assurance (GRAMA SUMANGAL) (5) GRAM PRIYA and (6) Scheme for Physically handicapped persons. These policies open for all and can purchase from all post offices all over the country. Post office do a good service to people through these insurance policies and all other services they are doing.
Postal Life Insurance offer Low premium high return
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