Nilima Yogesh Prabhu - SYBCOM E - 741
We live in a modern world and our lives are risky and uncertain. Hence, it is crucial to cover ourselves against these uncertainties like death and accidents by purchasing insurance. Life insurance is one of the essential insurance policies to have in our lives to save our family from a financial crisis. We should make sure to get life insurance before investing in any financial instrument because it protects our loved ones in the event something happening to us. In this blog we are going to discuss the postal life insurances and it's benefits.
PLI stands short for postal life insurance. PLI offers a wide range of life insurance plans at economical premium rates to fulfill the needs of different people. It was started in February 1884 to provide benefits under a welfare scheme to their employees. The policy provides financial protection to our family in case of the demise of the policyholder. The earlier we buy an insurance plan, the less premium we will have to pay to the insurance company and we should choose the tenure of our insurance policy till our retirement. We can purchase postal life insurance online or visit the post office. Also, the policyholder has the option to surrender the postal insurance policy after 3 years. However, the surrender value is determined by the type and tenure of the plan.
What are the Benefits of Postal Life Insurance?
Outstanding returns: PLI scheme in the post office provides the highest coverage along with an added bonus that is higher than other insurance.
Loan availability: We can avail of loan benefits against our insurance policy. However, we have to wait for three policy years to get a loan in case of an Endowment Assurance plan and four policy years in case we have bought a whole life insurance plan.
Conversion of policy: The policyholders who have bought a whole life assurance policy can transform it into an endowment assurance plan. We can also change the Endowment Assurance plan to another Endowment Assurance plan.
Appointment of a nominee: Post office policies allow the policyholders to nominate their beneficiaries. We also have an option to change the nominee of our PLI during the tenure of the plan.
Revival of the policy: Postal insurance can be revived in case the policyholder has not paid the premium for 6 consecutive premium amounts if the policy remains active for less than three years.
Issue of duplicate policy document: We can apply for the issuance of a duplicate document of the policy in case we have lost or torn the original document of the policy.
Income tax benefits: The policyholder can avail of income tax benefits of the Income Tax Act of up to INR 1.5 lakhs on the premium paid. We can avail tax exemption of 20% of the total insurance coverage.
Multiple PLI policies: We are allowed to buy more than one PLI policy.
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