Postal Life Insurance for Central Government Employees

Postal life insurance policies available for employees of the central government or any other semi-governmental body:

• Whole Life Assurance: The Whole Life Assurance policy has a minimum entry age of 18 years with a maximum entry age of 55 years and pays out assured sum with accrued bonuses to the policyholder on maturity or the nominee or legal heir upon death of the policyholder. The minimum sum assured is RS 20,000 with the maximum being RS 50 Lakhs. If the policy has been in effect for over a year and if the policyholder has not attained the age of 57 years yet, the policy can be converted into an endowment policy. The policy allows for loans to be taken out however, if a loan is taken out before completion of 5 years, the policy is not eligible for any bonuses.
• Endowment Assurance: Similar to the whole life assurance, in this policy, the policyholder is given an assurance that they will be paid a benefit of the Sum Assured and accrued bonus upon the policy attaining the maturity period. A death benefit equal to the sum assured plus any accrued bonuses are paid to the nominee and the policy allows for loans after completion of 3 years but any loans taken before 5 years will void any bonus to be accrued. This policy also has a minimum entry age of 18 years and maximum entry age of 55 years.
• Convertible Whole Life Assurance: This policy, upon the completion of 5 policy years, can be converted into an Endowment plan provided that the age of the policyholder at the time of conversion does not exceed 55 years of age. If the policy remains unconverted after the completion of 6 policy years, it is treated as a Whole Life Assurance Plan. The policy attains a surrender value along with the provision of acquiring a loan after the completion of 3 policy years
• Anticipated Endowment Assurance: This policy is a money back policy designed for those policyholders looking for periodic returns. The policy offers 2 terms, 15 years and 20 years. If the 15 year policy term is chosen, the benefits are paid out in the following format; 20% of the benefits paid in 6 years, 20% paid in 9 years, 20% paid in 12 years and the remaining 40% along with accrued bonuses are paid at the end of 15 years. If the 20 year policy term is chosen, the benefits are paid out in the following format; 20% pad out in 8 years, 20% paid out in 12 years, 20% paid out in 16 years and the remaining 40% with accrued bonuses are paid out at the end of the 20^th In the event of death of the policyholder, the nominee will not receive periodic payments but receive the sum assured with accrued bonuses as a lump sum
• Joint Life Assurance: If one of the spouses are eligible for a Postal Life Insurance policy, then the joint life assurance policy can be taken out by the eligible spouse which covers both the spouses with sum assured and accrued bonuses with only one premium having to be paid.

All the above schemes have a minimum sum assured of RS 20,000 and a maximum sum assured of RS 50 Lakhs and require compulsory medical examinations. For those policies that do not require a medical examination, the maximum sum assured is RS 1 Lakh

GST of 18% is applicable on life insurance effective from the 1st of July, 2017