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 only policies for two children.
Q. What is the necessity 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 are issued to people who are employed under Government/Semi-Government sector etc. That
is why the policy are 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 ad 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.
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 only policies for two children.
Q. What is the necessity 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 are issued to people who are employed under Government/Semi-Government sector etc. That
is why the policy are 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 ad 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 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 Undertaking
- 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 could have RPLI policies.
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 the 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. If one had taken a PLI policy six years back, but after credit of only 20 monthly premium, the insurant could not deposit further premium and now has realized that due to non credit of premium for 36 months, his policy had become forfeited and no amount against that is payable. Is it possible to revive this policy?
A. Yes, before date of last premium, he can apply for its revival and after credit of due premium with interest and a good health certificate, he can continue this policy. After revival due bonus will be automatically attached with this policy.
Q. Can one revive a lapsed policy?
A. If the premia are not paid for 6 months in case policy within 3 year, (or) 12 months in case of policy is more than 3 years, 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 team 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?
A. Such categories are not eligible, but they could have RPLI policies.
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 the 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. If one had taken a PLI policy six years back, but after credit of only 20 monthly premium, the insurant could not deposit further premium and now has realized that due to non credit of premium for 36 months, his policy had become forfeited and no amount against that is payable. Is it possible to revive this policy?
A. Yes, before date of last premium, he can apply for its revival and after credit of due premium with interest and a good health certificate, he can continue this policy. After revival due bonus will be automatically attached with this policy.
Q. Can one revive a lapsed policy?
A. If the premia are not paid for 6 months in case policy within 3 year, (or) 12 months in case of policy is more than 3 years, 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 team 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?
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.
If the circumstance warrant for surrendering a PLI policy after about 50% of the contract period is over, that too after 5 years of taking the policy, then the surrender value will be reasonably good.
In general, it is always better not to surrender the policy prematurely. It is just like taking a train ticket for a journey from Chennai to New Delhi and getting down at Nagpur. Hence it is suggested to go for loan to meet urgent expenditure.
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.
If the circumstance warrant for surrendering a PLI policy after about 50% of the contract period is over, that too after 5 years of taking the policy, then the surrender value will be reasonably good.
In general, it is always better not to surrender the policy prematurely. It is just like taking a train ticket for a journey from Chennai to New Delhi and getting down at Nagpur. Hence it is suggested to go for loan to meet urgent expenditure.
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