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Postal Life Insurance offers products ranging from Whole life insurance plans, endowment plans, and child plans among others. The PLI tax exemptions is the most striking feature of these products. The tax benefits received under PLIs attract more and more people to purchase postal life insurances to insure lives and secure families.
In this post, we are discussing the postal life insurance incentives including tax benefits associated with PLIs in India.
Postal Life Insurance or PLI is a life insurance policy with high return on premium. The Policy allows a sum assured of INR 50 lakh maximum to policyholders. Introduced in 1884 as a welfare scheme, postal life insurance is one of the oldest life insurance providers in India.
With policies offered to over 50,00,000 consumers, PLI is regarded as a trustworthy personal investment scheme offering high returns and bonus at very low premium rates.
You may have a query – PLI comes under which section of income tax? So, PLIs allow significant amount of savings on tax as these policies offer tax exemptions under the following Income Tax sections:
Section 10(10D) of Income Tax also allows tax deductions on the sum received at the time of maturity of the policy. However, there are certain conditions as mentioned below:
In case of sum assured received as death benefit by the nominee of the policyholder, the amount is regarded as tax free under India’s Income Tax Act.
PLI schemes allow numerous benefits to their policyholders and are regarded as one of the most flexible policies. Thus, it is also the most sought after policy in India. Here are some benefits that a PLI policyholder can receive:
To apply for postal life insurance policies, you need to fulfill the below eligibility criteria:
|Plan Name||Eligibility||Minimum Sum Assured||Maximum Sum Assured||Loan Facility||Premium Amount|
|Whole Life Insurance (Suraksha)||19 years (Min)
55 years (Max)
|INR 20,000||INR 50,00,000||Available after four years of policy completion||Varies depending on factors like entry and maturity age of insured and other factors|
|Endowment Assurance (Santosh)||19 years (Min)
50 years (Max)
|INR 20,000||INR 50,00,000||Available after four years of policy completion||Varies as per various factors|
|Convertible Whole Life Insurance (Suvidha)||19 years (Min)
55 years (Max)
|INR 20,000||INR 50,00,000||Available after three years of policy completion||Varies as per various factors|
|Anticipated Endowment Assurance (Sumangal)||19 years (Min)
45 years (Max)
|INR 20,000||INR 50,00,000||Not Available||Varies as per various factors|
|Joint Life Endowment Assurance (Yugal Suraksha)||19 years (Min)
55 years (Max)
|INR 20,000||INR 50,00,000||Available after three years of policy completion||Varies as per different factors|
|Children Policy (Bal Jeevan Bima)
|5 years (Min)
20 years (Max)
|INR 20,000||INR 3 lakh||Not Available||Minimal
|Insurance Policies||Bonus Rate|
|Whole Life Assurance (WLA)||INR 76/1000 of SI|
|Convertible Whole Life Assurance (CWLA)||A whole-life bonus rate will apply, but on conversion, the Endowment Assurance bonus rate will apply|
|Endowment Assurance (EA)- (Joint Life and children’s policies)||INR.52/1000 of SI|
|Terminal Bonus||INR 20 per SI of INR 10,000 subject to a maximum of INR 1000 for Endowment and Whole life assurance policies for a term of 20 or more years|
|Anticipated Endowment Assurance (AEA)||INR 48/1000 of SI|
Note: The rates are applicable for 1 April 2023 for the bonus for FY 2024 for PLI policyholders.
Below are the steps to check the status of your PLI policy in India:
Here are the steps to follow to claim the Postal Life Insurance (PLI) after maturity:
PLIs can be availed by the employees of Government and Semi-Government organizations only. PLIs also offers policyholders high bonuses and returns at reasonably-priced premiums.
Insurance is a requirement for everyone. It secures your family and children if any misfortune strikes. However, while buying an insurance policy, it is very important to compare and understand the plan well before making the final buying decision.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
PLIs can be availed by anyone who is an employee of the specified governments, armed forces, institutions and organizations etc. within the age group of 19 to 55 years.
PLI isn’t an ‘insurer’ so it cannot register itself with the Insurance Regulatory and Development Authority of India (IRDA).
Yes, PLIs can be availed only by Government and Semi-Government employees.
Income tax rebates on PLI are available under the section 80C of Income Tax Act. It is also available under section 10(10D) for the PLI maturity amount depending on certain conditions.
No, Private employees cannot avail a PLI policy. It is available for employees of government and semi-government organizations only.
The Premium Rate offered under a PLI is very less as compared to LIC or any other public, private insurers.
Depending on certain conditions, PLI maturity amount can have tax deductions under section 10(10D) of Income Tax Act.
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