Postal Life Insurance

Postal Life Insurance (PLI) scheme is one of the several government-backed insurance schemes. It is an insurance policy managed by the Department of Posts under the Government of India. PIL was launched in 1884. It aims to ensure the welfare of the employees of various fields through life insurance coverage. Postal Life Insurance offers life insurance benefits at a much lower price as compared to other policies available in the market. PIL is offered by the Government of India, to employees of Central and State Public Sector Enterprises, Government Aided Educational Institutions, Universities, Autonomous Bodies, Cooperative Societies, Local Bodies, Joint Ventures having a minimum of 10% Government/ PSU stake, professionals (such as doctors, engineers, chartered accountants, MBAs, lawyers etc.), employees of companies listed with National Stock Exchange (NSE) / Bombay Stock Exchange (BSE) etc.

How Does it Work?

  • High returns on premium is the attractive offer of Postal Life Insurance.

  • Under PLI, Rs. 50 Lakh is the maximum sum assured you can avail of.

  • There is a Rural Postal Life Insurance (RPLI) plan to provide financial coverage to the people living outside cities and towns.

Reasons to Buy this Plan

Here are some compelling reasons for you to join the PLI scheme.


  • Under the PLI scheme, the primary policyholder can enlist their beneficiaries as nominees. Also, changes can be made to this nomination list whenever needed.

  • PLI policies can be used as a collateral for pledging while taking a loan against this scheme.

  • A PLI policyholder can easily avail a duplicate policy document in case of loss or damage of the original.

  • Revival of the lapsed Postal Life Insurance for government employees and other employees is possible under certain conditions.

Key Features

Check out the below-mentioned key features of PLI before taking a final decision.

1. Loan Facility

Once you avail a PLI scheme, you can even take a loan by pledging this policy as collateral. In case of Endowment Assurance plan, this can be done only after 3 years of maturity and for Whole Life Insurance plan, after 4 years of the policy period.

2. Policy Renewal

You can revive a lapsed Postal Life Insurance plan under the following conditions:


  • If the policy is less than three years old and lapsed after six successive premium non-payments, you can revive it.

  • If the policy is more than three years old and lapsed after 12 successive premium non-payments, you can revive it.

3. Policy Conversion

If you avail a PLI, you are free to switch between Whole Life Assurance plan and Endowment Plan as per your choice.


PLI has many benefits and some of them are listed here.

  • Tax Benefits:

Under Section 88 of the Income Tax Act, 1961, policyholders can claim tax deductions.

  • Affordable Premiums:

The premium for PLI schemes is much affordable as compared to other insurance plans available in the market. The premium can be paid either monthly, half-yearly, or annually.

  • Easy Tracking:

All policyholders can track payment of premium (for loan transactions) with the passbook facility.

  • Discount for Advance Premium Payments:

If advance premium payments are made for a policy period of six months, policyholders can get a discount worth 1 percent of the premium value whereas for a policy period of 12 months, it is a 2 percent discount.

  • Quick and Easy Process:

Since the PLI scheme is centralised, the claims process is easy and quick.


PLI can be availed by salaried employees of different fields. Postal Life Insurance offers its policyholders high bonuses at reasonably-priced premiums. The minimum sum assured is Rs. 20,000 and the maximum can go up to Rs. 50 Lakh. One should be above 19 years of age to be qualified for a PIL scheme. The natural or accidental death of the policyholder, allows the family members to claim compensation under the PLI, however, it is mandatory to submit a death certificate for documentation purposes. The partial or permanent disability caused to the policyholder in an accident, makes them eligible for compensation under this scheme, if they can submit documents for verification purposes.


There are some exclusions under the Postal Life Insurance:


  • If the cause of death is suicide, you can’t claim PLI for that.

  • PLI does not cover hospitalisation costs and expenses.

  • Self-inflicted injuries, substance abuse or participation in any life-threatening stunts causing any temporary or permanent disabilities are not considered for compensation.

  • Death or disabilities caused during the war period are not covered under PLI.

Claim Process

On completion of the term of the policy, you can claim the maturity/survival benefit of a PLI as per the features of that particular plan. Follow the steps mentioned below to complete the claim process.


  1. Obtain the maturity/survival claim form from the nearest Post Office/CPC. In case of an online PLI, you can download the form from India Post website, PLI website or PLI Customer Portal.

  2. Enter the correct policy details like policy number, name of policyholder, sum assured, date of acceptance, premium frequency, date of maturity, communication address, DDO details (in case of pay recovery policies), account details etc.

  3. Attach the following supporting documents along with it:

  • Original Policy Bond or Letter of Indemnity

  • Self-Attested copy of ID proof of the policyholder

  • Self-Attested copy of address proof of the policyholder

  • Document of credit/Premium Receipt Book

  • Loan Receipt Book

  • Cancelled bank cheque of the policyholder for bank mandate/POSB passbook’s self-attested copy

  1. After filling the maturity/survival claim form, get the duly filled-in and signed ‘Acknowledgement Slip' as proof of submission from the official/office.

  2. Promptly respond to communication, if any, from CPC asking for missing/additional documents/information. For any queries related to the PLI application, reach out to PLI customer care at 1800-266-6868.


If you are a government, semi-government or salaried employee, Postal Life Insurance is an ideal insurance and investment plan. It is one of the most affordable and manageable insurance options that will cater to your financial and investment needs. You can use a PLI calculator to calculate the premium you have to pay for your chosen scheme. A PLI scheme calculator helps you understand the premium amount proportional to the sum assured amount. If you cannot avail a PLI, you can always consider buying a life or term insurance plan to safeguard the financial needs of your loved ones. You can choose one from the insurance plans available on Bajaj Markets and protect the financial future of your loved ones today!


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

PLI is mainly for salaried 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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