PLI / RPLI material for IPO Examination

Postal Life Insurance (PLI) was introduced on 1st February, 1884 with the express approval of the Secretary of State (for India) to Her Majesty, the Queen Empress of India. It was essentially a welfare scheme for the benefit of Postal employees in 1884 and later extended to the employees of Telegraph Department in 1888. In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives. It is the oldest life insurer in this country.

Over the years, PLI has grown substantially from a few hundred policies in 1884 to 42,83,302 policies as on 31.03.2010. It now covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational Institutions, Nationalized Banks, Local bodies etc. PLI also extends insurance cover to the officers and staff of the Defence services and Para-Military forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.

With 1,55,669 branches across the country, the Post Office is India’s largest retail and financial services provider and is among the most widely recognized and trusted brands in the country, offering a wide range of products and essential services. In India Post, the endeavor is to take advantage of our unique position.

Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendation of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that, only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The Committee had observed:

“The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas…….”

The Government accepted this recommendation and permitted Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population.

The Department of Posts has started this task entrusted by the Central Government with great dedication and sincerity and within a short span of time, made a very positive impact on the rural populace. Rural Postal Life Insurance, in fact, is meant for anyone who has a rural address. It is a boon for migrant labour and artisans, and the unorganized sector, who move on to urban areas for employment, but continue to have a rural base. Labour migrating overseas are also eligible for a policy. RPLI has now a total of 99,25,103 policies with Sum Assured of Rs. 595,72,59,00,275 as on 31.03.2010

Who are eligible for obtaining a PLI policy?
Employees of the following Organizations are eligible.

• 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

Whether salaried professionals in Private Sector can join PLI?

Such categories are not eligible. They can opt for RPLI policies.

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

We have ‘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.

Can one continue the policy if one quits the Government Service?

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

For Rural Postal Life Insurance any Indian residing in Rural India can take RPLI. Rural area is defined as one being outside the limits of a municipality.

Age Limit: In all policies the age limit is (age as on next birthday):19-55 years. Only in AEA and GRAM Priya in RPLI the maximum age limit is 40 years.

Welcome to the PLI family. This guide has been designed for your comfort.
A Postal life insurance policy is a long term relationship. During this long period you will have number of interactions with PLI. A life insurance contract has several features which need explanation. While the Policy bond given to you covers the contractual issues, you need a guide, written in simple language, that highlights some important facts about your PLI Policy.

(i). Policy Bond and its safety:
The policy bond is the most important document during the life of a policy. This is a document which will be called for in connection with various servicing events including the settlement of claims. The first thing you should do after receiving the bond is to keep the same in a safe place and please do not forget to inform your near and dear ones about where this bond has been kept.

(ii). Policy Number:
Please look at the Policy Bond again. There is a 6 digit number called Policy number. This is a unique number that identifies the policy. In any correspondence related to servicing of the policy you have to quote this number. So we would advise you to note down this number in your diary. While paying premium through cheque, Policy number must be quoted on the back of the cheque.

(iii). Payment of premium:

The premium payment is the most important and most frequent event in the life time of a Policy and you must not forget to pay premium in time. Failure to pay premium in time results into lapsation of policy which means the life cover will not be available to you.
* There are concessions on this under certain conditions. However, generally, the life risk is not covered during lapsation period. Also, delay in payment of premium invites late fee.

The premium must be paid in advance on the first day of the each month. However, grace period is allowed upto the last working day of the month.

Please note from the Policy Bond, the date of commencement of the policy, due date and mode of payment of premium. Mode of payment means the frequency i.e. yearly, half-yearly, quarterly, monthly etc. Based on these information, you can draw a chart of due dates for premium payment in your diary. For example, if the date of commencement is 20 June, 2008 and mode is Qly, the due dates will be 1st June, 1st September, 1st December, 1st March.

Please note these dates and the premium amount against the Policy number in your diary.

You are a responsible person and surely you will not forget to pay your premia in time. However, just to help you remember this most important information, we shall be sending a premium notice. Please note that you need not wait for the notice as it is not mandatory to produce the premium notice in the counter. Primarily, it will be your responsibility to remember to pay premium in time.

(iv)A. For Payment of Premium through deduction from pay:
Please check from time to time that your employer is regularly remitting the premium deducted from your salary to PLI. Any lapse or delay in remittance will be against your interest, as this may result in loss of Insurance cover. One should not miss the Insurance cover even for a brief period. Please check your salary slip regularly to ensure that the PLI premium has been deducted.

If your services are transferred, please find out from your new office, the location of the PLI office where your PLI Premium will be sent. Please inform the old PLI office that now onwards your premium will be remitted to xxx office of PLI. [ xxx is the new PLI office]. This is important.

Your permanent address/e-mail id / mobile no helps us to contact you, even when your services are frequently transferred.

(v) How and where to pay the premium:
We all know that different individuals have different choices. Some love to come to PLI/ nearest post office and some others would not like to stand in a queue. Keeping this in mind, we have tried to provide facilities for all types of customers.

If you are one of those who would feel comfortable to pay across the counter, let us inform you that you can do so in any post office.

(vi)A. Transfer of Policy
Your policy can be transferred to any where in India on account of your job transfer.
The premium payment can be made in cash, local cheque or Demand Draft. One can send Demand Draft/Cheque/Money Order also.

(vii) Your address:
Next important thing to remember is that your address and telephone no. is the most important information about you. Our policy is to send the claim cheque on or before the due date of maturity. Often, despite our best efforts we fail to send a claim cheque before the maturity date just because the policyholder has forgotten to inform the change of address. Would you please remember to inform the post office about the change of address whenever that happens? Please check up whether your address has been correctly printed in the policy schedule.

(viii) Nomination:
We all know the ultimate purpose of buying a life insurance policy and it is extremely important that your policy should have a nominee. We are sad to see at times unfortunate delay in death claim settlement just because the nomination was not made. As a responsible person you will surely nominate someone, preferably a near and dear one from your family, if not already done. Please check up whether your nominee’s name is appearing correctly in the policy schedule. Nomination can be done/changed at any point of time. However, if you assign your Policy [say, to a bank, to get loan], the nomination gets automatically cancelled. On reassignment, ownership of the Policy comes back to you, but the old nomination does not automatically get revived. You have to, in such cases, nominate afresh.

The insurant is advised to nominate the person to whom the claim amount shall be payable in the event of his/her death. In the case of minor nominee, name and consert of the appointee (guardian) who may receive the said amount of behalf the minor must be given. In the event of the death of the nominee before the death of the insurant, change in nomination must be registered with the office of Chief Postmaster General (PLI).

(ix) Lapsing of Policy:
The policy shall be treated as lapsed in case you fail to pay the premium/premia that has/have become due. Incase of policies of less than three years duration, if more than six premia are not paid, the policy lapses. In case of policies of more than three years duration, if more than twelve premia are not paid, the policy lapses.

(x) Reinstatement of Policy:
We would like that in the unfortunate event of your policy lapsing, you should immediately get the same reinstated. For automatic reinstatement of your policy within a period not later than six months or a period not later than 12 months from the date the first unpaid premium had become due in respect of such policies that have not completed 3 years, or in respect of such policies that have already completed 3 years from the date of acceptance respectively, he/she may deposit all the arrears of premium/premia till that date of such payment along with interest thereon at the rates prescribed by Director General of Posts in the specified Post Office. You should inform the Chief Postmaster General to this effect through the said Post Office along with certificate of continued good health in the prescribed proforma to be signed by you and a certificate from your employer certifying that you had not taken any leave on medical grounds during said period.

(xi) Revival of discontinued Policy:
In the case of such policies which have lapsed and are time barred for automatic reinstatement, you may apply for revival of policy to the Chief Postmaster General before the policy has matured subject to payment of all the arrears of premia with interest thereon and further subject to production of a certificate from an authorised Medical Examiner certifying that the life assured is insurable having regard to your health and habits and of evidence to show that there has been no change in your personal or family history or your occupation as also a certificate from your employer, if employed; certifying that you had not taken any leave on medical grounds during the last one year, or during the entire period of service or from the date the first unpaid premium had become due whichever is the least. The policy shall not be treated as revived unless the Chief Postmaster General has satisfied himself and has permitted such revival in writing.

(xii) Loan:
Loan will be granted on the security of Endowment Assurance Policy if the Policy has been in force for at least 3 years, and is otherwise unencumbered and has acquired a minimum surrender value of Rs. 1000/- Subsequent loans are also permissible subject to fulfilling conditions prescribed.

(xiii) Insurance on minor lives:
If the life assured is a minor, important thing to remember is that nomination should be effected on attaining majority (18 years).

(xvii) Survival Benfits:

Please check your Policy schedule [1st page] to see whether periodic Claim payments are due to you. If so, please note down the due dates. In case you have not received the payment by the due date, get in touch with the Post Office.

Postal Life Insurance (PLI) was introduced on 1st February 1884 with the express approval of the Secretary of State (for India) to Her Majesty, the Queen Empress of India. It was essentially a scheme of State Insurance mooted by the then Director General of Post Offices, Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal employees and later extended to the employees of Telegraph department in 1888. In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives. It is the oldest Life insurer in this country.

In the beginning, the upper limit of life insurance was only Rs 4000/- which has now increased to Rs 10 lacs (Rupees Ten Lacs) for all schemes combined - Endowment Assurance and Whole Life Assurance. Over the years, PLI has grown substantially from a few hundred policies in 1884 to 42,83,302 policies as on 31.03.2010. It now covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies etc. PLI also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.

PLI is an exempted insurer under Section 118 (c) of the Insurance Act of 1938. It is also exempted under Section 44 (d) of LIC Act, 1956.

PLI offers 7 (Seven) types of plans: Whole Life Assurance (SURAKSHA) Convertible Whole Life Assurance (SUVIDHA) Endowment Assurance (SANTOSH) Anticipated Endowment Assurance (SUMANGAL) Joint Life Assurance (YUGAL SURAKSHA) Scheme for Physically handicapped persons Children Policy

WHOLE LIFE ASSURANCE: This is a scheme where the assured amount with accrued bonus is payable to the assignee, nominee or the legal heir after death of the insurant. Minimum Age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. The policy can be converted into an Endowment Assurance Policy after completion of one year and before 57 years of age of the insurant. Loan facility is available after completion of four years and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

ENDOWMENT ASSURANCE: Under this scheme, the proponent is given an assurance to the extent of the Sum Assured and accrued bonus till he/she attains the pre-determined age of maturity. In case of unexpected death of the insurant, the assignee, nominee or the legal heir is paid the full Sum Assured together with the accrued bonus. The minimum age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. Loan facility is available and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

CONVERTIBLE WHOLE LIFE ASSURANCE: The features of this scheme are more or less same as Endowment assurance. Policy can be converted into Endowment Assurance after five years. Age on the date of conversion must not exceed 55 years. If option for conversion is not exercised within 6 years, the policy will be treated as Whole Life Assurance. Loan facility is available. The policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

ANTICIPATED ENDOWMENT ASSURANCE: It is a Money Back Policy with maximum Sum Assured of Rs 5 lacs. Best suited to those who need periodical returns. Survival benefit is paid to the insurant periodically. Two types of policies are available - 15 years term and 20 years term. For the 15 years term policy, the benefits are paid after 6 years (20%), 9 years (20%), 12 years (20%) and 15 years (40% and the accrued bonus). For the 20 years term policy, the benefits are paid after 8 years (20%), 12 years (20%), 16 years (20%) and 20 years (40% and the accrued bonus). Such payments will not be taken into consideration in the event of unexpected death of the insurant and the full sum assured with accrued bonus is payable to the assignee or legal heir.

JOINT LIFE ASSURRANCE: It is a joint-life Endowment Assurance in which one of the spouses should be eligible for PLI policies. Life insurance coverage is provided to both the spouses to the extent of sum assured with accrued bonus with only one premium. All other features are same as an Endowment policy. All the above schemes have compulsory medical examination. For the non-medical policy of any category (except AEA and Joint Life Assurance for which Medical Examination is compulsory), the maximum Sum Assured is Rs 1 lac.

SCHEME FOR PHYSICALLY HANDICAPPED PERSONS: The maximum limit of Insurance for Physically Handicapped persons in PLI is the same as others and he/she can take any one of the plans. Medical examination is compulsory under this scheme in order to determine the exact nature and extent of their handicap and its bearing on the life being insured. Depending upon the nature and extent of handicap, normal or a slightly higher premium is charged.

CHILDREN POLICY The Department has introduced Children Policy under PLI/RPLI, with effect form 20th Jan 2006. The salient features of this scheme are as under:- The Scheme is envisaged to provide Insurance cover to the children of PLI/RPLI policy holders. Maximum two children in family will be eligible to take children policy. Children between the age of 5 and 20 years are eligible and maximum sum assured is Rs 1 lakh or equivalent to the sum assured of the main policy holder which ever is less. The main policy holder should not have attained the age of 45 years. No premium is required to be paid on the children policy on the death of the main policy holder and full sum assured with the accrued bonus shall be paid to the child after the completion of the term of the children policy. On the death of the child/children, full sum assured with the accrued bonus shall be payable to the main policy holder. Main policy holder shall be responsible for payments for the Children Policy. No loan shall be admissible on Children Policy. However, the policy shall have facility for making it paid up provided the premia are paid continuously for 5 years. No Medical examination of the Child is necessary. However, the child should be healthy on the day of proposal and the risk shall start from the date of acceptance of proposal. The policy shall attract bonus at the rate applicable to Endowment Policy. The POIF Rules amended from time to time shall be applicable to Children Policy.

PLI is the only insurer in the Indian Life Insurance market today which gives the highest return (bonus) with the lowest premium charged for any product in the market.

A PLI/RPLI policy holder may also get following facilities :-

• Change of nomination.
• The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also available.
• Assignment of Policy to any Financial Institution for taking loan.
• Revival of his/her lapsed policy. Policy lapses after 6 unpaid premia if it remained in force for less than 3 years and after 12 unpaid premia if it remained in force for more than 3 years.
• Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or torn/mutilated.
• Conversion from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.

Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The Committee had observed:

“ The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas…..”

The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population. As on 31.03.2010, we have 99,25,103 RPLI policies

RPLI offers following types of plans:

1. Whole Life Assurance ( GRAMA SURAKSHA)
2. Convertible Whole Life Assurance (GRAMA SUVIDHA)
3. Endowment Assurance ( GRAMA SANTOSH)
4. Anticipated Endowment Assurance (GRAMA SUMANGAL)
5. GRAM PRIYA
6. Scheme for Physically handicapped persons

The salient features of the Whole Life, Endowment, Convertible Whole Life and Anticipated Endowment Schemes of RPLI are same as the corresponding schemes of PLI except that the minimum Sum Assured is Rs.10,000 and the maximum Sum Assured is Rs.3 lac. The maximum age limit of entry is 55 years in case of Whole Life and Endowment Assurance but 45 years in case of other plans.

All the schemes have compulsory medical examination. For the non-medical policies, the maximum limit of Sum Assured is Rs.25,000/-, and maximum age is 35 years. In case of Non-standard age proof for Rural PLI policies, the maximum age limit is 45 years.

PLI is the only insurer in the Indian Life Insurance market today which gives the highest return (bonus) with the lowest premium charged for any product in the market.

A PLI/RPLI policy holder may also get following facilities :-

• Change of nomination.
• The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also available.
• Assignment of Policy to any Financial Institution for taking loan.
• Revival of his/her lapsed policy. Policy lapses after 6 unpaid premia if it remained in force for less than 3 years and after 12 unpaid premia if it remained in force for more than 3 years.
• Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or torn/mutilated.
• Conversion from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.

Q. What is PLI? A. 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. Q. When did PLI start? A. PLI as a scheme is available since 01.02.1884. Q. What is the difference between PLI and other Insurance? A. PLI is only for Government and Semi-Government employees. Moreover PLI is the only Insurer that offers low premium and high bonus. Q. Is PLI guaranteed? If so, by whom? A. PLI is guaranteed by Government of India. Q. Is there any limit to the number of policies one can take for children? A. One can take policies for two children. Q. What is the necessity of sending the PLI Policy Bond to office address of the Insurant? Why can this not be sent to the residence of Policy holder? A. 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. Q. How can a policy be transferred from one PO to other? A. 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). Q. Which type of PLI policy among your scheme is more beneficial to opt for without hesitation? A. All policies in PLI 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. Eligibility Q. Who are eligible for obtaining a PLI Policy? The employees of following are eligible for PLI policy: Central Government Defense Services Para Military Forces State Government Local Bodies Educational Institutions/ Government-aided Reserve Bank of India Public Sector Undertakings Financial Institutions Nationalized Banks Autonomous Bodies Extra Departmental Agents in Department of Posts Q. Whether salaried professionals in Private Sector can join PLI? A. Such categories are not eligible but they can have RPLI policies subject to fulfilling other conditions. Q. If one spouse is working in a Government Organization but the other is not, is there any scheme in PLI for both? A. We have '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. Q. Can one continue the policy if one quits the Government service? A. One can continue by making payment at any one of the 1, 55,000 post offices throughout the country, even after quitting service.. PREMIA PAYMENT Q. What is the mode of premium deposit? A. 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. Q. Is there any other mode of payment? A. The premium can be paid through Cheque. Q. Is premium recovered through salary? A. Yes, recovery of the premia through salary is possible, in offices where it is remitted directly to PLI. In 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 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. Q. Why is the premia for children’s policy higher? A. As both children’s and parent’s risk is covered. Q. Can one revive a lapsed policy? A. 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. Q. What happens if one forgets to pay one’s premium in a month? A. One can pay the premium in the subsequent month, by paying a minimum fine of Re. 1/- per hundred of sum assured. LOAN Q. Is loan facility available in PLI? A. 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. Q. Is Home loan available? A. No Q. 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) SURRENDER Q. What is surrender value of a policy? A.” 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. Q. What will be the surrender value of the policy? A. Surrender value depends on the surrender factor and type and term of policy. Q. 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. 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.

Whole Life Assurance (WLA), Convertible Whole Life Assurance (CWLA) and Endowment Assurance (EA) policies can be surrendered after completion of three years and payment of premia for 36 months both in PLI and RPLI. Policy should be unencumbered/ unassigned. Bonus is admissible only in cases of policy which have continued for minimum 5 years. Surrender value depends on the surrender factor and type and term of policy. AEA policies cannot be surrendered in both PLI and RPLI. You should expect surrender value to be lesser than the premia you have deposited.

Loan is admissible on Whole Life Assurance (WLA), Endowment Assurance (EA) and Convertible Whole Life Assurance (CWLA) policies. Currency of policy should be minimum of 3 years in case of EA and CWLA. Currency of policy should be minimum of four years in case of WLA. Policy should be unencumbered/ unassigned. Loan Limit: (a) Whole Life Assurance Currency of Policy Percentage of surrender value on which loan is admissible More than 4 years to 7 years 60% More than 7 years to 12 years 80% More than 12 years 90% (b) Endowment Assurance and Convertible Whole Life Assurance Currency of Policy Percentage of surrender value on which loan is admissible More than 3 years to 5 years 60% More than 5 years to 10 years 80% More than 10 years 90% Insurant should apply on LI-35 (loan application) and send to DDM (PLI) alongwith policy document and premium receipt book. Second and subsequent loan is admissible after a year if the first loan is fully repaid. Loan interest @ 10% p.a is calculated on six monthly basis.