Best PLI Policy in Post Office- An ultimate Guide on Postal Life Insurance Policies

Best PLI Policy in post office- After Covid-19, each and every Indian wants to insure himself. He wants to take a life Insurance Policy available in the market nowadays. Do you know about PLI (Postal Life Insurance)? Post Office Postal Life Insurance of one of the famous life insurance for people. Today, I am going to share about PLI and PLI policies. What is PLI? Which PLI policy is better than LIC? So, read the post up to the end to know Postal Life Insurance Policy.

PLI (Postal Life Insurance) PLI Policy

What is PLI (Postal Life Insurance)?

Postal Life Insurance (PLI) is one of the oldest insurance schemes for all the government employees which was started in 1884. 

Initially, PLI policy was only for post office employees but today, state government employees, central government employees, defense and paramilitary force employees, central and state government PSUs employees, government university and institute employees, bank employees, and co-operative society employees can get the profit of Postal Life Insurance (PLI). Do you know which policy is best in post office? 

Now the scope of PLI policy has been expanded to more people, these also get the benefit of PLI. Here I am sharing the list of these types of people.
  • Private institution/school/university employees can also insure themselves in PLI.
  • Doctors, engineers, bankers, management consultants, chartered accountants, architects, jurists, etc can also insure themselves in PLI.
  • NSE (National Stock exchange) and BSE (Bombay stock exchange) employees

Best PLI Policy in Post Office (Types of PLI Policy) 

Presently, there are six types of PLI policies provided by the postal department for eligible candidates. These areas under-
  1. Whole Life Assurance (Suraksha)
  2. Endowment Assurance (Santosh)
  3. Convertible Whole Life Assurance (Suvidha)
  4. Anticipated Endowment Assurance (Sumangal)
  5. Joint Life Assurance (Yugal Suraksha)
  6. Children Policy (Bal Jeevan Bima)

Whole Life Assurance (Suraksha) PLI Policy

  • Is it also known as Suraksha PLI Policy.
  • The sum assured along with bonus, which will be payable both before the age of 60 years or death, will be payable.
  • Insurance can be converted into EA
  • PLI policy loan facility is available after the policy runs for four consecutive years
  • Surrender facility is available after the policy has run for three consecutive years
  • Maximum age of premium payment is 55, 58, and 60 years

Endowment Assurance (Santosh) PLI Policy 

  • Santosh is the best PLI policy in post office. 
  • It is known as Santosh PLI Policy.
  • The maturity age of the insurance is 35, 40, 45, 50, 55, 58, and 60 years
  • PLI policy loan and surrender facility after three years
  • Insurance amount with bonus will be payable on maturity or death, whichever is earlier

Convertible Whole Life Assurance (Suvidha) PLI Policy

  • It is known as Suvidha Postal Life Insurance Policy.
  • Option to change to EA at the end of five years of taking the policy provided that at least one year has elapsed between the date of change and the date of maturity.
  • PLI policy loan facility after 6 years
  • Surrender facility after 3 years

Anticipated Endowment Assurance (Sumangal) PLI Policy

  • The common name of this policy is Sumangal PLI policy.
  • This is a money-back policy.
  • Insurance period 15 years or 20 years
  • No facilities for loan and Surrender
  • From the term of the policy and if the death of the insurer, then the entire sum assured will be given along with a bonus.
    Survival benefit will be payable as follows: -

How many types of PLI Policy is available in Post office

Joint Life Assurance (Yugal Suraksha) Policy

  • This is joint insurance in which either husband or wife of the couple should be eligible for PLI
  • Insurance of both (husband and wife) with a single premium
  • The minimum age and maximum age of the couple at the time of admission is 21-45 years
  • In the event of the death of the couple or the main policyholder, whoever lives will be paid death benefits.

Children Policy (Bal Jeevan Bima)

  • WLA and EA holders can insure a maximum of two children.
  • The age limit of the guardian should not be more than 45 years
  • Child age 5 to 20 years
  • Sum insurance Rs. 20,000/-  to 3 lakhs
  • It is not necessary to get a medical test of the child
  • In case of the accidental death of a parent before completion of policy, the premium for the remaining period is not payable.

Postal Life Insurance (PLI) features

"Low premium and high bonus" is a unique feature of PLI. Although, the PLI policy has many features as well as LIC. But I am going to tell you some special features of PLI which are compulsory to know. 

Insurance Amount

  • Minimum insurance amount- 20,000/- Rs.
  • Maximum insurance amount- 50,00,000/- Rs. (After medical checkup)
  • Rs. 1,00,000/- (without medical checkup), Age of insurant should be more than 35 years.

Age limit

  • Minimum age- 19 years
  • Maximum age- 55 years
  • Maximum age- 40 years (only for Anticipated Endowment Assurance AEA-20 & AEA-15 policy)
  • Maximum age- 45 years  (only for Joint Life Assurance policy)

Low premium and high bonus

If you insure before 35 years, then the premium will have to be deposited less than the sum assured and an attractive payment will be received. You can understand Low Premium and High Bonus feature of PLI from the below example. 

If someone gets a PLI of ten lakh at the age of 21 years, then the monthly premium will be 1,750/- Rs. He will pay a total premium of 8,19,000/- Rs. only which is less than the sum assured. He will get 32,62,000/- Rs. as the maturity amount for this PLI.

  • Sum insurance- 10,00,000/- Rs.
  • Age of insurant- 21 years
  • Maturity Age- 60 years
  • Monthly premium- 1,750/-
  • Total Premium- 8,19,000/-
  • Maturity amount- 32,62,000/- (Bonus+sum insurance) *at currect bonus rates @ 58 Rs.

Note: - Maturity amount = bonus + sum insurance, *at current bonus rate @ 58/- Rs. (As on April 2020)

Premium Payment

PLI premium can be deposited at any post office across India by cash amount or cheque. It is an offline process. People can also deposit PLI online through Credit cards, debit cards, online banking, UPI, and IPPB accounts. The step-by-step process to deposit online Postal Life Insurance can check from the below links.

The official Website of PLI is You can also deposit PLI Online payment on this website. It is totally safe and secure for PLI premium payment.

PLI Policy Loan facility

After completion of 3 years, the PLI policy loan facility is also available on all types of PLI policies except Anticipated Assurance (AEA) and children policy. The government does not give any loans on the AEA PLI policy and PLI policy for children. 

High Bonus

PLI has a regular record of consistently giving high bonuses to its customers.

How many types of PLI Policy is available in Post office

Rebate in premium

  • A rebate will be also given on the deposit of monthly installments in advance by the PLI insured.
  • 1% rebate on advance deposit of 6-11 months installments
  • 2% rebate on advance deposit of 12 months or more than 12 months monthly installment.
  • Insurance of Rs. 20,000/- or more than Rs. 20,000/-, Rs. 1/- per month per twenty thousand rupees, the premium will get an additional rebate according to the insurance table.

Nominee and assignment facility

The nominee's name can be changed at any time before maturity. The maturity sum amount of PLI will be delivered to the nominee or legal dependant. 

09. Restarting lapsed policy

The policy will be discontinued if the premium due on the policy for less than three years, is not deposited within 6 months and if the policy has more than twelve months' balance remaining or is not deposited. Permission has to be obtained to revive this type of policy. 

Interest will be payable at the rate of 1% per month along with the outstanding premium for the revival of the lapsed policy.

Surrender facility

Any policy except AEA and child policy can be surrendered after paying a premium for three consecutive years. Bonus will be payable on those policies and premium will be deposited for at least five years.

PLI policy premium calculator

PLI Policy Premium calculator is a simple calculator that calculates the monthly premium of each PLI policy plan. You have to fill basic details in PLI policy premium calculator like sum insurance amount, date of birth, it will show what is your monthly PLI premium. 

If you want to calculate the monthly premium before buying a PLI policy then you have to download an India post official android application i.e. POST INFO. Find the option for the PLI calculator in this application. Fill all the details which are required in the "Post Info" PLI premium calculator and get your monthly premium.  You may download it from here. You can also read the review of the Post Info application 2020 from here.


Question 01- What is PLI (Postal Life Insurance)?

Answer- A contract entered into by the Government to pay a given sum of money on the death of an individual to his nominee or himself, if he survives that period.

Question 02- When did PLI start?

Answer- PLI as a scheme is available since 01.02.1884.

Question 03- What is the difference between PLI and other Insurance?

Answer- PLI is only for Government and Semi-Government employees. Moreover, PLI is the only Insurer that offers low premiums and high bonus.

Question 04- Is PLI guaranteed? If so, by whom?

Answer- PLI is guaranteed by the Government of India.

Question 05- Is there any limit to the number of policies one can take for children?

Answer- One can take policies for two children.

Question 06- What is the necessity of sending the PLI Policy Bond to the office address of the Insurant? Why can this not be sent to the residence of Policyholder?

Answer- PLI policy is issued to people who are employed under Government/Semi-Government sector etc. That is why the policy bond is sent to the Office address of the Insurant.

Question 07. How can a policy be transferred from one PO to other?

Answer- The system of transfer of PLI policy is very simple. The policy holder can apply to the Chief Post Master General through the Post Office where the policy stands or the PO in which he desires to pay the premium. The PO will accept the application and send to the CPMG (PLI).

Question 08- Which type of PLI policy among your scheme is more beneficial to opt for without hesitation?

Answer- All policies in PLI are beneficial. Every scheme has some unique features. In EA policy, you will get your savings along with a bonus after the prescribed number of years.

Question 09- Who is eligible for obtaining a PLI Policy?

Answer- The employees of the following are eligible for PLI policy:
  1. Central Government
  2. Defense Services
  3. Para Military forces
  4. State Government
  5. Local Bodies
  6. Government-aided Educational Institutions
  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
  13. Employees Engaged/ Appointed a Contract basis by central/ State Government where the contract is extendable
  14. Employees of all scheduled Commercial Banks
  15. Employees of Credit Co-operative Societies and other Co-operative Societies registered with the Government under the Co-operative Societies Act and partly or fully funded by the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
  16. Employees of deemed Universities and educational institutes accredited by recognized bodies such as the National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India, etc.

Question 10- Whether salaried professionals in Private Sector can join PLI?

Answer- Such categories are not eligible but they can have RPLI policies subject to fulfilling other conditions.

Question 11- If one spouse is working in a Government Organization but the other is not, is there any scheme in PLI for both?

Answer- PLI has a '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.

Question 12. Can one continue the policy if one quits the Government service?

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

Question 13- What is the mode of premium deposit?

Answer- The Premium Receipt Book is issued to the Insurants for the deposit of Premium in any departmental PO, and there is a facility of recovery from pay for all employees belonging to the Central Government.

Question 14- Is there any other mode of payment?

Answer- The premium can be paid by Cheque. An online Payment facility is also available for PLI payment.

Question 15- Is premium recovered through salary?

Answer- Yes, recovery of the premia through salary is possible, in offices where it is remitted directly to PLI. In the case where it is not, it is possible by appointing a Group Leader, who collects the premia from the insurants and deposits in a post office along with the PR book. However, premia are to be deposited in any post office as per convenience i.e. monthly/half-yearly/ yearly where there is no recovery through salary.

Question 16- Why is the premia for children's policy higher?

Answer- As both children's and parents' risk is covered.

Question 17- Can one revive a lapsed policy?

Answer- If the premia are not paid for 6 months in case policy is in currency for 3 years (or) 12 months in case policy is more than 3 years old, then the policy becomes void. This needs revival to make it active. Revival shall not be allowed on more than two occasions during the entire term of the policy. Policy can be revived any time one year before maturity.

Question 18- What happens if one forgets to pay one's premium in a month?

Answer- One can pay the premium in the subsequent month, by paying a minimum fine of Re. 1/- per hundred of sum assured.

Question 19- Is a loan facility available in PLI?

Answer- Loan can be taken from EA policy after completion of 3 years and in respect of Whole Life after completion of 4 years. Loan facility is available in AEA policies.

Question 20- Is Home loan available?

Answer- No.

Question 21- What are the terms on which loan can be availed?

Answer- EA policies after 3 years from the 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)

Question 22- What is the surrender value of a policy?

Answer- The 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.

Question 23- What will be the surrender value of the policy?

Answer- Surrender value depends on the surrender factor and type and term of the policy.

Question 24- Can one get the full amount paid with accrued bonus, if a policy is surrendered prematurely?

  • The endowment Assurance policy can be surrendered after 36 months.
  • WLA policy can be surrendered after 48 months.
  • Children's 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.

Santosh (EWA) policy is the best PLI policy in Post Office. I have mentioned all the things about PLI (Postal Life Insurance) and its basic features. The postal Life insurance Policies list is also mentioned here for information. Still, you have any questions about PLI then comment on this post. I will give you the right answer.

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