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All about Postal Life Insurance and the interest rate at which it allows loan facility to its policyholders.
The Government of India issues several financial plans every year to benefit its employees. Life insurance is one of the most important of such financial products. With a view to providing financial protection to the employees of the Indian Post Office, Postal Life Insurance (PLI) was initiated. The scheme was slowly expanded to cover other Central Government employees and to offer insurance benefits to their respective families. In addition, PLI offers the extended benefit of loan facility to its employees at a decent interest rate.
Here we look into more details on PLI and the interest rate it offers on loans to its policyholders. Read on.
The PLI scheme was initiated by the government of India to offer life insurance protection to the employees of the Indian Post Office as well as other government and semi-government employees and professionals associated with the Indian government.
Life insurance benefits are made available under this scheme in addition to a loan facility against the sum assured. The loan facility provided under the PLI is provided against a percentage of the insured sum amount offered under life insurance. This loan helps the policyholder take care of any emergencies in the short term.
Here are some of the key features offered by PLI plans:
Rural Postal Life Insurance, popularly referred to as RPLI, was a scheme initiated by the Indian Postal Department in 1995. The scheme was the government’s way of providing life insurance protection to the rural parts of the country where life insurance benefits haven’t reached adequately.
The scheme was introduced keeping in mind the extensive reach of post offices in rural areas through which reaching out to people with insurance would be easier.
The PLI scheme introduced for government employees also provides the special benefit of loan facility to help policyholders take care of short-term financial contingencies. However, the loan facility is available to the policyholder only after 3-4 years of buying the policy.
This loan amount can be availed at an interest rate of 10% p.a. for a period of 6 months. This means that the postal PLI interest rate on the loan amount is paid every 6 months. In case of failure in timely payment of interest by the policyholder, the pending interest amount gets added on to the outstanding loan. Also, the PLI rate of interest will then depend on the total outstanding loan.
In case of an untimely payment of PLI loan interest rate by the policyholder 3 times in succession, the PLI scheme for the policyholder will be surrendered by the insurer. The surrender value of the plan will then be used by the insurer to pay off all pending interest amounts as well as the outstanding loan amount. The policyholder would not be entitled to any benefits from the PLI scheme after the plan’s surrender.
The interest rate calculator for PLI is designed to assist the policyholder in computing the total premium amount payable towards the policy. The premium amount generated by the PLI interest rate calculator includes the current rate of GST payable as well. Besides this, the premium payable can be computed for monthly, quarterly, half-yearly, or annually on the calculator. This can be done by entering details such as the age of the policyholder, the total sum assured under the plan, and the term of the policy.
PLI offers loan facility to its policyholders under the following eligibility conditions:
Here are some of the prime advantages of taking loan against PLI:
PLI loan facility is one of the major highlights of the insurance plan, helping the government employees and professionals to take care of their financial needs adequately. The interest rate is fairly decent and affordable too. If you wish to calculate the current rate of interest on PLI loans, visit PayBima online and use the PLI interest rate calculator. For best deals on all kinds of insurance, do go through the website.
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