Postal Life Insurance Queries

Postal Life Insurance Queries 

Product Overview 

1.      What is Postal Life Insurance?

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.

2. When did Postal Life Insurance start?

Postal Life Insurance as a scheme is available since 01.02.1884.

3.      What is the difference between Postal Life Insurance and other Insurance?

Postal Life Insurance is only for Government and Semi-Government employees. Moreover Postal Life Insurance is the only Insurer that offers low premium and high bonus.

4.      Is Postal Life Insurance guaranteed? If so, by whom?

Postal Life Insurance is guaranteed by Government of India.

5.      Is there any limit to the number of policies one can take for children?

One can take policies for two children.

6.   What is the necessity of sending the Postal Life Insurance Policy Bond to office address of the Insurant? Why can this not be sent to the residence of Policy holder?

Postal Life Insurance policy is issued to people who are employed under Government/Semi-Government sector etc. that’s why the policy bond is sent to the Office address of the Insurant.

7.      How can a policy be transferred from one Post Office to other?

The system of transfer of Postal Life Insurance 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 Postal Life Insurance and send to the CPMG (Postal Life Insurance).

8.  Which type of Postal Life Insurance policy among your scheme is more beneficial to opt for without hesitation?

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

9.     Who are eligible for obtaining a Postal Life Insurance Policy?

The employees of following are eligible for Postal Life Insurance policy:

Central Government, Defence Services, Para Military forces, State Government, Local Bodies Government-aided Educational Institutions, Reserve Bank of India, Public Sector Undertakings, Financial Institutions Nationalized Banks Autonomous Bodies Extra Departmental Agents in Department of Posts Employees Engaged/Appointed an Contract basis by central/ State Government where the contract is extendable Employees of all scheduled Commercial Banks Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government Employees of deemed Universities an educational institutes accredited by recognized bodies such a National Assessment and Accreditation council, All India Council of Technical Education, Medical council of India etc.

10.  Whether salaried professionals in Private Sector can join Postal Life Insurance?

Such categories are not eligible but they can have RPostal Life Insurance policies subject to fulfilling other conditions.

11. If one spouse is working in a Government Organization but the other is not, is there any scheme in Postal Life Insurance for both?

Postal Life Insurance '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.

12.  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..

13.   What is the mode of premium deposit?

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.

14.   Is there any other mode of payment?

The premium can be paid through Cheque and cash.

15.     Is premium recovered through salary?

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

16. Why is the premium for children's policy higher?

As both children's and parent's risk is covered.

17.  Can one revive a lapsed policy?

If the premium 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.

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

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

19.  Is loan facility available in Postal Life Insurance?

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.

20.  Is Home loan available?

No

21.  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)

22.  What is 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.

23.  What will be the surrender value of the policy?

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

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

Endowment Assurance policy can be surrendered after 36 months. WLA policy can be surrendered after 48 months. Children policy can be surrendered after 60 months.

25.  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.

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