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Do you know the new eligibility for PLI (Postal Life Insurance) rules? Many of us unaware that Post Office also offers the Life Insurance. However, the eligibility is restricted earlier. Due to the huge competition, recently they changed the rules.

What is PLI (Postal Life Insurance)?

PLI (Postal Life Insurance) is exactly like any Life Insurance company, for example, LIC or ICICI Pru Life Insurance. The only difference is, it is run and managed by Post Office. PLI currently offers only traditional plans. Therefore, no term insurance or ULIPs. The policies are offered by Government Of India through Post Office.

The advantage of PLI is that they offer you the products at the cheaper premium with high bonus rates.

Currently, PLI offers 6 types of policies and they are as below.

  1. Whole Life Assurance (SURAKSHA)
  2. Convertible Whole Life Assurance (SUVIDHA)
  3. Endowment Assurance (SANTOSH)
  4. Anticipated Endowment Assurance (SUMANGAL)
  5. Joint Life Assurance (YUGAL SURAKSHA)
  6. Children Policy(BAL JEEVAN BIMA)

Advantages of investing in PLI (Postal Life Insurance)

  • You can avail of the tax benefits by investing in PLI under Sec.80C.
  • The premium you pay towards PLI is very low compared to other Life Insurance Companies premium rate (inclusive of LIC).
  • PLI offers the highest bonus rate (more than LIC plans).
  • Facilities like – Assignment, Loan, Conversion, Surrender and Paid Up Value options are also available.
  • You can transfer the policy to any Circle within India, at no additional charges.
  • PLI provides you the passbook facility to track the payment of premium and in case of loan transactions, etc.
  • You can pay the premium annually, half-yearly and monthly basis.
  • You can avail 1% discount on the premium if you make an advance premium payment for a policy period of 6 months.
  • You can avail 2% discount on the premium if you make an advance premium payment for a policy period of 12 months.
  • Nomination facility is also available.

New Eligibility for PLI (Postal Life Insurance)

A reader commented in my blog post about the new eligibility for PLI (Please refer the comment “Postal Life Insurance Vs LIC-Which is best?“. However, I was also unaware of the same. Finally, he sent the Government notification in this regard. Hence, thought to update the same.

Let me give you the list of eligibility for PLI as per old rules and they are as below.

  • Central Government
  • Defense Services
  • Para-Military forces
  • State Government
  • Local Bodies
  • Government-aided Educational Institutions
  • Reserve Bank of India
  • Public Sector Undertakings
  • Financial Institutions
  • Nationalized Banks
  • Autonomous Bodies
  • Extra Departmental Agents in Department of Posts
  • Employees Engaged/ Appointed a Contract basis by central/ State Government where the contract is extendable
  • Employees of all Scheduled Commercial Banks
  • Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
  • Employees of deemed Universities an educational institutes accredited by recognized bodies such a National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India etc.

The insurance industry in India has undergone transformational changes after liberalization of the insurance industry in the year 2000, subsequent to setting up of the IRDA.

In such a competitive life insurance industry scenario, PLI felt it necessary to open the doors of eligibility for other individuals also. Hence, they came up with the notification on 18th October 2017. Sadly, the PLI portal still refers to the old eligibility rules. Below is the Government notification of the same.

New Eligibility for PLI (Postal Life Insurance)

Based on the above list, I am sharing you the below new eligibility for PLI (Postal Life Insurance) rules as below.

  • Central Government
  • Defense Services
  • Para-Military forces
  • State Government
  • Local Bodies
  • Government-aided Educational Institutions
  • Reserve Bank of India
  • Public Sector Undertakings
  • Financial Institutions
  • Nationalized Banks
  • Autonomous Bodies
  • Extra Departmental Agents in Department of Posts
  • Employees Engaged/ Appointed a Contract basis by central/ State Government where the contract is extendable
  • Employees of all Scheduled Commercial Banks
  • Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
  • Employees of deemed Universities an educational institutes accredited by recognized bodies such a National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India etc.
  • Employees (teaching or non-teaching staff) of, all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre / State Governments) of Secondary / Senior Secondary education i.e. CBSE, ICSE, State Boards, Open Schools, etc.
  • Professionals such as Doctors (includingDoctorspursuing Post Graduate degree courses through any Govt/Private Hospitals,Residents Doctorsemployedon contract/ permanent basis in any Govt/PrivateHospitalsetc),Engineers (including’ Engineers pursuing Master’s /’ Post·Graduate degree after having passed GATE entrance test), Management Consultants; Chartered Accountants (registered with Institute orCharteredAccountantsofIndia),Architects, Lawyers (registered with Bar Council of India/ States ), Bankers (working in Nationalised and its Associate Banks,Foreign Banks,Regional Rural Banks,Scheduled Commercial Banks including Private Sector Banks) etc.
  • Employees of listed companies of NSE (National Stock Exchange) and Bombay Stock Exchange (BSE) in IT, Banking & Finance, Healthcare/ Pharma, Energy/power, Telecom, Infrastructure Sector etc, where employees are covered for Provident Fund./ Gratuity and / or their leave records are maintained by the establishment.

I have bolded the new eligibility for PLI (Postal Life Insurance) categories in bold. Do remember that as proof of profession, the copy of the relevant educational degree from a recognized institution / regulatory body will be submitted at the time of purchasing.

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About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

Reader Interactions

Comments

  1. Naveen Raja B

    How many policy can an one central government employee allow to pay premium ? At a time I can pay 2 premium amount for the policies (endowment assurance and also convertible whole life assurance) . Is it possible sir? Please clarify my doubt.

    Reply

  3. Prashant

    Hi Sir,

    My mausi expired on 1st Jan 21, she was an employee of delhi government. She took PLI but couldn’t contu paying premium due to disability as she had stroke in November 2019. Last premium was paid in Feb 2020. Please suggest how we can claim the life insurance benefit.

    Reply

  5. Naveen Sharma

    I am an health care professional(Post Graduate). Currently working in wipro. Please let me known whether I am eligible for getting PLI.

    Reply

  6. Arun V

    Dear sir,
    I am 37
    Mechanical Engineer by education.
    Working in a company. Pf/gratuty available but Pvt company, not listed.
    Can I opt for PLI as an engineer?
    Do I need to submit any document?
    Thank you.
    Arun V

    Reply

  7. Srikanth

    Hi Sir,

    I’m Srikanth, 34 years old.working as a Software Engineer..

    But in 2014 December I got open heart surgery for aorta valve replacement.

    So please let me know am I eligible for PLI policy?

    My health condition is normal only.

    Reply

  8. Ramya

    Hi Sir,

    I am an Indian citizen currently employed as an engineer and have been paying PLI premiums from past 2 years.My premium ends on 2035 and I will be migrating abroad permanently this year.
    What impact will it have on my PLI maturity amount?
    Will I obtain the same maturity amount as an Indian citizen would if I keep paying my premiums?

    Thanks,
    Ramya

    Reply

  9. Bijesh

    I am an health care professional(Post Graduate). But currently working abroad. Please let me known whether I am eligible for getting PLI

    Reply

  11. Srimannarayana

    I am an MBA graduate working in Audit department in an MNC. Am I eligible for postal insurance (Santhosh plan)? Please clarify.

    Reply

  13. Saurabh

    Dear sir, I am working in Mastercard, Pune as IT professional with registration in EPFO and PFRDA. Am I eligible for PLI plan?

    Reply

  17. Ketaki

    Whether Civil engineering working as Government contractor can have PLI policy. He has completed only BE and not appeared for GATE

    Reply

  18. ASWIN

    Dear sir, I am an MCA (Master of Computer Applications) graduate and I am working in state government as a contract pay. Can I eligible for PLI.

    Reply

  21. Razz

    I am a defence person. Now my age 27. I want to open a PLI 5/10 lac for 10 years. So, how many Rs pay monthly installment and how many Ruppes received after maturity.

    Reply

  30. Hemant

    Sir i am working as a accountant in a partnership firm which has a lease through state government for mining porpose it gives all facilities like pf, gratuity, leave records etc is i am elegible for pli or not. Pleaese tell me.

    Reply

  35. Janu

    Nice Article. One doubt regarding new eligibility. It mentions “Engineers” so I believe even engineering graduate ( BE, BTec) are also eligible.
    Secondly , I heard that each policy has mandatory medical exam/test which applicant need to go thru.. However I don’t find any details on it..like any age limit..list of tests, criteria etc. Please share if you have those details..

    Reply

  36. sat

    Hi Sir,
    I read the eligibility list i was not able to find IT professionals. TO be double sure i am asking do IT professionals working in private company are eligible?

    Reply

  37. Manikandan S

    I am working as an accountant in International sivananda yoga centre in Thiruvananthapuram, Kerala. Our organization comes under trust. Can I apply for post office insurance? Waiting for your advice.

    Reply

  38. shubhendu

    Sir, Employees of BSE/NSE listed Pvt. Manufacturing Co.’s is not mentioned.
    Also if one wishes to apply online is not mentioned. May please clarify.

    Reply

  39. Srinivasa Vutukuri

    Sir, I am private employee or doing my small business….Please tell me can I take Postal Life Insurance?

    With Regards,
    Srinivasa Vutukuri

    Reply

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