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Postal Life Insurance for Govt Employees

Public employees have several government-backed insurance options available to them. One such scheme is the Postal Life Insurance (PLI) scheme.

The Postal Life Insurance, or PLI, scheme is an insurance policy established in 1884 and is currently managed by the Department of Posts under the Government of India. The primary purpose of the scheme is to ensure the well-being of government employees through adequate life insurance coverage. With the PLI scheme, they can avail life insurance benefits at a much lower price as compared to policies available in the market.

Let us take a look at different PLI schemes.

Types of Postal Life Insurance Schemes

The following are the insurance plans offered under Postal Life Insurance.

  • Whole Life Insurance (SURAKSHA)

The whole life insurance (SURAKSHA) has a minimum entry age of 18 years and a maximum entry age of 55 years. It offers a sum assured amount along with bonus (if any) to the insured individual as maturity benefits. In case of the sudden death of the insured, the sum assured amount along with the bonus (if any) is paid to the beneficiaries.

The minimum sum assured amount of the plan is INR 20,000 while the maximum is INR 50 lakh. Also, if the policy has been active for more than a year, and the insured individual is less than 57 years of age, then the plan can be converted into an endowment policy.

Moreover, you can avail a loan on the whole life insurance plan. But if the loan is availed before the completion of five years of the policy, then you will not be eligible for any bonuses.

  • Joint Life Insurance (YUGAL SURAKSHA)

If you are eligible for a Postal Life Insurance plan, the benefits can be extended to the spouse with a joint life insurance plan. This way, both the spouses can avail the benefits of the policy with having to pay only a single premium amount.

  • Endowment Insurance (SANTOSH)

The endowment plan is much similar to the whole life insurance plan. Here, the insured individual will be provided with the sum assured amount along with the collected bonus (if any) as maturity benefits. Also, the beneficiaries of the policy will receive the death benefits along with the bonus amount (if any) in case of the insured individual’s sudden death.

The policy allows to avail loans on it after the completion of three years. However, if a loan is taken before the policy completes five years, then it will void any bonuses accrued so far. The endowment plan comes with a minimum entry age of 18 years and a maximum entry age of 55 years.

  • Convertible Whole Life Assurance

A convertible whole life assurance policy can be covered into an endowment plan after completion of five years. However, at the time of conversion, the insured individual should be below the age of 55 years.

In case the policy is not converted into an endowment plan within six years of completion, then it will be treated as a whole life insurance plan. Also, you can avail a loan or surrender the policy only after completing three years of the plan term.

  • Anticipated Endowment Assurance

If you are looking for a policy that offers periodic returns, then anticipated endowment assurance is just the right choice for you. This policy provides two policy terms – 15 years and 20 years.

For 15 years policy term, the benefits are paid out as follows

  • After completing six years – 20%

  • After completing nine years – 20%

  • After completing 12 years – 20%

  • Upon completing 15 years – 40%

For 20 years policy term, the benefits are paid out as follows:

  • After completing eight years – 20%

  • After completing 12 years – 20%

  • After completing 16 years – 20%

  • Upon completing 20 years – 40% along with the accrued bonuses

In case of death of the insured individual, the beneficiaries of the policy will not receive periodic payments, but instead, the sum assured is paid as a lump sum amount.

Features of Postal Life Insurance

Here are a few features of PLI schemes:

  • Nomination Facility: The primary policyholder can enlist his/her beneficiaries as nominees under the scheme. Further, they can also make changes to this nomination list as and when needed.

  • Loan Facility: Policyholders can even take a loan against this scheme as PLI plans can be pledged as collateral. However, this can be done only after 3 years of maturity (for Endowment Assurance plan) and 4 years of the policy period (for Whole Life Insurance plan).

  • Policy Renewal: Policyholders can revive a lapsed PLI scheme under the following conditions:

1. A policy that is less than 3 years old and lapsed after 6 successive premium non-payments.


2. A policy that is more than 3 years old and lapsed after 12 successive premium non-payments.


  • Duplicate Policy: Policyholders can get a duplicate policy document if they lose/misplace/damage the original.

  • Policy Conversion: Policyholders can switch from Whole Life Assurance plan to Endowment Assurance Plan and vice versa.

Benefits of Postal Life Insurance

Some benefits of PLI schemes are listed below:

  • Policyholders can avail tax benefits under Section 88 of the Income Tax Act, 1961.

  • The premium for PLI schemes is much affordable as compared to other insurance plans available in the market.

  • Policyholders can track payment of premium (for loan transactions) with the passbook facility.

  • Premium is paid either annually, half-yearly, or monthly.

  • If advance premium payments are made for a policy period of 6 months, policyholders can avail a discount worth 1% of the premium value.

  • If advance premium payments are made for a policy period of 12 months, policyholders can avail a discount worth 2% of the premium value.

  • Policyholders can nominate beneficiaries under the scheme.

  • Lastly, the PLI scheme is centralised, because of which the claim process is easy and quick.

Eligibility of Postal Life Insurance

The policy offers a maximum sum assured of ₹50 lakh. It is available to the employees in the following sectors:

  • Central and state governments

  • Defence services

  • Government-aided educational institutions and universities

  • Autonomous bodies

  • Paramilitary forces

  • Local bodies

  • Reserve Bank of India

  • Cooperative societies

  • Joint ventures having a minimum 10% government/PSU stake

  • Contract-based employees in Central/state government (where the contract can be extended)

  • Employees of all scheduled commercial banks

  • Extra departmental agents in Department of Posts

Bonus Rates of Postal Life Insurance

The following table gives an overview of the PLI bonus rates.

Type of PLI Scheme

Rate of Bonus

Endowment Assurance (EA)

₹50 per ₹1,000 of the sum assured amount.

Whole Life Assurance (WLA)

₹65 per ₹1,000 of the sum assured amount.

Convertible Whole Life Policies

The whole life bonus rate is applicable. However, on conversion, the applicable rate will be equal to the endowment bonus rate.

Anticipated Endowment Assurance

₹47 per ₹1,000 of the sum assured amount,

Postal Life Insurance Customer Guidelines

Government employees, when investing in the PLI scheme, should be mindful of the following guidelines.

  • Policy Details: The PLI scheme number will be available on the document. It can be used as reference for future discussions, to identify the PLI scheme, make premium payments, etc.

  • Policy Bond: The PLI plan bond is a vital document and must be kept safely as it might be needed during claim settlements. In case of loss or damage to the bond document, you can acquire a duplicate copy.

  • Pay Premiums Regularly: The premium payments towards the PLI scheme should happen on time. Any discrepancy in the same can lead to PLI lapse, forcing you to lose out on coverage benefits. Ideally, the premium payment should be done on the first day of each month.

  • Deduction from Pay: Premiums towards the PLI scheme can be deducted directly from the pay. However, the initiation of this facility needs approval from the employer. Once the facility is put in place, the premium amount is deducted regularly from the salary, and the same will be mentioned in the salary slip.

  • Transfer of Policy: If the employee has to transfer to another post, the PLI scheme can be transferred to another circle within the country.

  • Payment Modes: The premiums on the PLI scheme can be paid via cheque or cash. Online payment facilities along with over-the-counter payments at the post office are also available.

  • Contact Details: The applicant has to provide accurate contact and personal information as it can affect the claim settlement process.

  • Policy Lapse: The PLI scheme will lapse when:

1. The policy is less than three years old, and there are six successive non-payment of premiums.


2. The policy is more than three years old, and there are 12 successive non-payment of premiums.


  • Policy Revival: If the policy lapses due to the reasons stated above, then the policyholder can revive it by submitting a formal request to the Chief Postmaster General. Once the pending premiums are paid with interest, the policy is activated.

  • Loan Against Policy: Policyholders can take a loan against the PLI scheme after completing three years of the policy term.

  • Contact the Officials at PLI: Policyholders can write a letter or call the authorities at PLI to submit their grievances and issues related to the schemes. The same can be done via sending an email at pli.dte@gmail.com.

PLI Citizen's Charter


Turnaround Time

(in days)

Issue of acceptance letter


Inter-circle transfer of policies


Issue of policy bonds


Settlement of claims on maturity


Settlement of death claim involving investigation


Settlement of claims on death with nomination


Settlement of claims on death without nomination


Payment of paid-up value


Changes of address


Loan for policies


Change of nomination


Issue of duplicate policy document




Conversion of policy


Postal Life Insurance Premium Calculator

Applicants can calculate the premium amount prior to investing in the PLI scheme by using the PLI premium calculator. The tool only needs a few details, and it estimates the premium the policyholder has to pay to avail the benefits under the scheme. These details include:

  • Applicant’s age

  • Type of PLI scheme needed

  • Sum assured

  • Date of birth

  • Spouse’s date of birth (for Yugal Suraksha scheme)

  • Age of the insured when the policy matures

Things to Remember About Postal Life Insurance

Here are a few things to keep in mind regarding the PLI scheme:

  • Even though PLI is gaining recognition in the society, the plan is still not available at all the Indian post offices. Only a few selected postal offices with a PLI division offer this plan. Moreover, this plan cannot be purchased online, and one has to visit the post office to invest in it personally.

  • The minimum entry age of the plan is 18 years and the maximum entry age is 55.

  • The maximum sum assured amount is approx. ₹10 lakh.

  • Government employees can continue with the policy even after they leave the job.

  • Premiums can be paid on a monthly, half-yearly, or annual basis.

  • You can surrender the policy at any point in time. The endowment plans can be surrendered after completing three years, whereas the whole life insurance plans can be surrendered after completing four years.


Post Life Insurance is quite an attractive plan, especially if you are a government employee. It is one of the most affordable and manageable insurance options that will cater to your investment needs as per your financial situation.

For those who cannot avail this service, they can still consider buying a life insurance plan to safeguard the financial needs of their loved ones. You can browse term insurance plans available on Finserv MARKETS that offer customised comprehensive coverage that best suit your needs, swift claim settlements, and so much more.

Protect the financial future of your loved ones with term plans at Finserv MARKETS, today!

FAQs related to Postal Life Insurance

  • ✔️What is the primary difference between Postal Life Insurance and other insurance schemes?

    PLI is mainly for government and semi-government employees. Moreover, it is the only scheme that provides high bonuses at affordable premium rates to its policyholders.

  • ✔️Does the Postal Life Insurance scheme have a guarantor?

    Yes. The Government of India guarantees PLI.

  • ✔️Can I surrender my life insurance plan with the PLI scheme?

    Yes. However, the surrender value of your life insurance plan will depend on the type of PLI scheme and its term.  

  • ✔️Can I insure my children under the PLI scheme?

    Yes. You can have up to two children insured under the PLI schemes.

  • ✔️Are there any tax benefits on Postal Life Insurance?

    Yes. Policyholders can avail tax benefits under Section 118C of the Insurance Act, 1938, and under Section 44D of the LIC Act, 1956.

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