Meaning of Postal Life Insurance Interest Rates on Loans – Check Benefits & Eligibility
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The Indian government offers various life insurance plans to secure the financial future of people. The PLI or Postal Life Insurance is one such government policy that monetarily protects the lives of your family members at an economical postal interest.
The PLI or Postal Life Insurance helps the policyholder to protect their loved ones in the event of their sudden demise. Further, these plans also provide extra benefits in the form of loan facilities to the insured to fulfill their emergency financial needs, like medical expenses or urgent need for home repair. Hence the loan amounts offered under PLIs are subject to the postal life insurance interest rate. Let us read more about the PLI meaning and the PLI interest rate in detail!
Meaning of Postal Life Insurance
PLI, or Postal Life Insurance, is a government of India initiative introduced to offer easy and affordable life insurance protection to employees working in government and semi-government organizations, including the employees of India Post.
The PLI scheme allows the policyholders to enjoy life coverage, including the benefits of availing loans against the sum assured. The loan facility is available up to a certain percentage of the assured sum of your policy. With the PLI loan facility, policyholders can easily overcome the financial emergencies occurring in their lives.
What is the Postal Life Insurance Interest Rate?
The postal life insurance or PLI scheme allows the policyholders to avail of loans against their insurance plan once the plan completes a minimum duration of 3 to 4 policy years. The loans are available against the PLI interest rate of 10% per annum on a semi-annual basis. Thus, the interest rate under PLI loans needs to be paid in six months.
Below are specific key points to be noted about the PLI or postal life insurance interest rate:
- PLI loan interest rate is considered on a semi-annual basis. Hence, policyholders have to pay the amount of loan interest in six-months
- The remaining interest rate to be paid is included in the outstanding loan in case the insured finds it challenging to pay the interest on time. Further, the interest rate of PLI is subject to the overall amount of the outstanding loan.
- Suppose the policyholder fails to pay the loan interest thrice in a row. In that case, the insurer or the post office will surrender the policy and use the surrender value to pay off the pending interest as well as the outstanding loan amount. After the completion of the surrender process, the policyholder will no longer be eligible for any other benefits of the PLI scheme.
Benefits of Availing Loans Under PLI Schemes
The key benefits of availing a loan against your PLI or postal life insurance are mentioned below:
- Individuals covered under PLIs can easily get loans against their life insurance
- PLIs were designed for the economically weak sections of society. Hence, the PLI interest rates are reasonable as compared to other lenders
- The process of availing loans under PLI is fast and hassle-free, which makes it easy for the policyholders to avail loans against their insurance plan
- You can avail of a loan against PLI to overcome any short-term financial crisis
Eligibility for Availing of Loan Under PLI Scheme
The PLI scheme allows the policyholders to avail of a loan under the following conditions:
- The policyholders under PLIs can avail of loans twice during their life insurance policy tenure
- The policy must complete 3 years of minimum tenure before the policyholder can apply for a loan against endowment policies and joint life insurance policies
- The insured can avail of a loan against his/her whole life and convertible whole life assurance plans once it completes a minimum of 4 years term
- The insured can avail of a loan of up to the maximum surrender value, which is calculated at the time of buying the policy, while the minimum PLI loan amount is INR 1000
Postal Life Insurance (PLI) Interest Calculator
The PLI interest rate calculator is an online tool that can be used by the insured free of cost to calculate the total premium that the policyholder has to pay under the policy. Further, the PLI loan calculator can be used to calculate the premium amount on a monthly, quarterly, semi-annual, or annual basis. The policyholder needs to enter specific details like the policyholder’s age, sum assured, policy term, etc., to calculate the interest rate using the plan calculator.
When you compare PLI to other life insurance plans available in the market, PLI has a cheaper premium rate. This is an appealing factor in a PLI that makes it better than other life insurance policies. Also, the PLI interest on the bonus is around 7%, which is better than many other policies.
Yes. PLI plans are readily available online and can be bought without any inconvenience. Customers can visit the URL below to buy Postal Life Insurance online: https://pli.indiapost.gov.in/CustomerPortal/Home.action
There are 6 schemes offered by PLI or Postal Life Insurance, such as:
~ Endowment Assurance (Santosh)
~ Whole Life Assurance (Suraksha)
~ Anticipated Endowment Assurance (Sumangal)
Convertible Whole Life Assurance (Suvidha)
~ Children Policy (Bal Jeevan Bima)
~ Joint Life Assurance (Yugal Suraksha)
To get the postal insurance login details, the customer has to first register with the insurer and receive the credential by generating a customer ID. You can use this ID to log in to your PLI insurance page.
To avail PLI loan facility, the policy has to complete three years from the purchase date. You must get all relevant PLI loan details from the official website of the insurer before availing of the loan.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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