Postal Life Insurance Vs LIC-Which is best?

Do you know your Post Office also offers Life Insurance? Even if you know then there is a huge confusion among buyers like whether to buy with the Post Office or with LIC, because the Government of India backs both. Hence, let us see which is best for whom.

Postal Life Insurance Vs LIC

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.

How many types of policies PLI (Postal Life Insurance) offers?

Currently, PLI offers below mentioned traditional endowment products.

1) Whole Life Assurance Policy (Suraksha).

This is exactly like LIC’s Whole Life Policy. The nominee will receive the accrued bonus and sum assured after the death of the policyholder. Minimum age at entry is 19 Yrs and the maximum is 55 Yrs. Minimum Sum assured is Rs.20, 000 and maximum Sum Assured is Rs.10, 00,000.

2) Endowment Assurance (Santosh).

This is a typical endowment plan where a policyholder gets sum assured along with a bonus if he survives until the maturity period. In case of his death during the policy period, then his nominee will receive the sum assured along with an accrued bonus. Eligibility criteria are the same as that of Whole Life Assurance Policy (Suraksha).

3) Convertible Whole Life Assurance (Suvidha).

This plan is exactly like Endowment Assurance. The only difference is, if you don’t convert this policy to Endowment Assurance then it is treated as a Whole Life Assurance plan.

4) Anticipated Endowment Assurance (Santosh).

This is a typical money back endowment plan, where the maximum sum assured is restricted to Rs.5, 00,000. In this category, PLI offers two types of plans. One is 15 yrs and other is a 20 yr term.

5) Joint Life Assurance (Yugal Suraksha).

You can buy this policy with your spouse as co-insured. To avail this facility one the spouse must be eligible to buy PLI. Life Insurance coverage is for both husband and wife to the sum assured you bought. The maximum sum assured is Rs.1, 00,000.

6) Scheme for physically handicapped persons.

This plan is uniquely designed for handicapped persons. Based on the condition of handicap, a premium raised or increased. Rest of plan features are exactly like the others.

7) Children Policy

PLI started to offer child policy from 2006. Few features are listed below.

  • It mainly covers the life insurance of children.
  • Maximum two children can be insured in a family.
  • Children between 5 Yrs to 20 Yrs are eligible for this plan.
  • Maximum Sum Assured is Rs.1,00,000.
  •  Premium waiver benefit in case of main policyholder dies.
  • In case of death of children, then sum assured along with bonus be payable to the main policy holder.
  • The responsibility of premium payment rest with the main policyholder.

So what is the difference between PLI and LIC?

  • Eligibility-To buy PLI you must be an employee of the Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, etc. PLI also extends the facility of insurance to the officers and staff of the Defense services and Para-Military forces. Whereas LIC offers it plans to all citizens of India. So when it comes to flexibility to buy then LIC holds an edge than PLI. Refer my latest post “New Eligibility for PLI (Postal Life Insurance)“.
  • Plans offered-There is no such difference. Because of LIC and PLI mostly dependent on traditional endowment type of Life Insurance Plans. But along with that LIC offers term insurance (recently LIC launched online term insurance), which is not at all touched by PLI.
  • Premium Rate-When compares to LIC or any private insurers, PLI offers cheap premium. So this is the most advantage of buying endowment plans with PLI than with LIC.
  • Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas currently, LIC offers a bonus rate of around 4% to 5%.
  • Where to buy-In case of PLI, you have to visit to the Post Office where these schemes are offered. Whereas in case of LIC, you will easily get agents. These agents can come to your doorstep and offer the service. Along with that recently LIC launched an online buying also (restricted to online term plan and pension plan). Therefore, in case of buying LIC offers more flexibility than PLI.
  • Age Limit-PLI offers insurance to the age group of 19-55 yrs. Where as in LIC you can get the insurance coverage up to 75 yrs (not in all policies).
  • Maximum Sum Assured-PLI offers you the maximum sum assured of Rs.50 Lakh. Whereas, LIC offers an unlimited maximum sum assured.
  • Premium Payment-In case of LIC, you can pay it in branch, collection points or through online. Recently a reader updated that Post Office also offering online premium payment facility. But I have not checked this. Hence, better you cross-check Postal Officials and proceed.
  • Tax benefits-Both PLI and LIC offer same tax benefit for deduction under Sec.80C.

Considering all these features and differentiation between PLI and LIC, I feel PLI is still in olden days. Because it offers less insurance coverage, entry is restricted to only a few, service issues, no term insurance, and age limit. Whereas only two positive points that attract you towards PLI are lesser premium and a higher bonus.

Whether it is prudent to buy endowment plans from PLI?

Even though PLI offers you higher return and lower premium compare to LIC and other private insurers, the returns, in the long run, may erode drastically if you consider the inflation. Along with that, you will be underinsured due to the restricted maximum insurance limit. Post Offices still not customer friendly. So you may face service issues and claim settlement issues.

Overall, I found PLI with limited positive points and unlimited negative points. The decision is rest with you 🙂

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310 thoughts on “Postal Life Insurance Vs LIC-Which is best?”

  1. Postal life insurance is best other insurance PLI offers chep bonus & premium online premium facility and claim settlement is very good

  2. LIC gives FAB (Final Additional Bonus) apart from regular Bonus kindly take into account before comparing any product.

  3. Mangesh Bacchewar

    1)PLI can take any central, state govt, sami govt, any type of bank employee etc
    2)Company employees- which company is listed in BSE/NSE listed
    3) otherwise …any type of professional Degree/Diploma holder …can take pli
    4)any type of school contractual teachers can take pli.

  4. Online payment is applicable in PLI. “Postinfo” app is the only solution of the same. But before you pay online you must go to your nearest post office to register your mobile number and email ID with your policy. Thank you

  5. Guys…
    This article needs lot of updates for PLI.
    Entry is not limited to Government employees, Private employees who are working in the companies which are participating in BSE/NSE/NASDAQ are eligible to apply with limit of 50 Lakhs

  6. If one who is looking for insurance, investment n tax savings then chose best online term insurance plan based on the need then chose best ELSS MF SIP scheme till you beech IT limit of sec 80c then chose good open ended SIs of your choice. This could be the better choice to meet all your needs.

  7. Sir i took jeevan anand plan with 6 lakh SA and 15 years term
    My premium is around 24000 half yearly
    I have already paid 3 instalments please suggest me should i continue or not and if possible please provide me the amount i will get on maturity

  8. Sir I am planning to long term invest for my two daughter’s future .
    First 9 yrs old .second 1yrs old .
    What would be the best in terms of returns ,lic or pli

  9. My name is Nitin Naik and I am 30 yrs old. I am planning to invest 30000 per year for the term 25-30 yrs. So please suggest me best policies.

  10. Sir, i decided my pli policy surrender. but I pay pli premium around 50 thousands For 4years. But pli officials surrender value shows only 15 thousands. What will do ?

  11. Hi Sir,

    My wife (Age 33 ) works with state government (Ministry of agricultural – from last 4 years on contract which get renewed every year ) and iam (Age 37 ) starting my own firm . From PLI site i can say , she is eligible for for policy . we wanted to opt for Yugal Suraksha OR Whole Life Assurance Policy (Suraksha) . kindly suggest on below

    1) Iam a know diabetic from last 5 years , will it be a problem to opt for any of such policy .

    2) We are thinking to opt this for 10 Years and can pay up to 20K per year ..so in this case which policy (out of two mentioned ) or any other you may think is write.

    iam not sure if i missed any think to mention , please help .

    Thanks in advance.

      1. iam insured by LIC and my wife is nominee to it but she does not hold any policy on her name .also being she is in employment with govt. we thought this is a benefit & indicate good returns .

        Kindly suggest .

  12. Thanks for your information about pli. Recently I follow your blog. Sir I have taken pli for 4 1/2years back. After I read your blog I had a term plan. And I will invest in elss 5k per month. Now please advice my pli policy is surrender or paidup? Which is better?

  13. Sir,

    I am a govt. Servant. I want to invest money for higher returns and tax saving purpose. And to maintain liquidity also so that I can buy plot or house.

  14. Hi

    Can you please help review table on Jeevan Labh policy and help understand if returns are that high especially bonus amount?

  15. Dear basunivesh I’m turning 34 in a few days already having term insurance on my name for 50lk .is it ok to take yugal suraksha for investment and insurance purpose for me and my wife premium being around2300 for month for 20 years for 5lakhs policy.awaiting for ur reply.

  16. sir,
    i do your post. It is very beneficial.

    I am investing in ELSS (7000/month).
    done with PPF (1.5 lakh).
    have RD & FD.
    have invested in capital market but in loss
    SBI life insurance, though an investment plan with cover of 2500000 but premium of 2 Lakh per annum.
    now planning for PLI (one WLA & another endowment- for 15 lakhs sum assured for both). I am doing this for investment purpose only apart from complementary LI. please let me know what is the annualized return of these postal policies. to be more precise, the corpus which i will receive after maturity will have how much % return per annum.
    I am quite confused in investing in PLI. Though very soon i will be purchasing term life insurance policy also.

    my point is to create wealth for my future. do we have other options for wealth creation by investing

      1. sir, my motive is insurance also. but some investment plan do give a bit of insurance also. thats why i have asked the % return. i my opinion with inflation and lowering bank rates, mutual fund may be the best options for log term saving. what u advice sir?

  17. I want to know which is better – Term plan or endowment plan. I don’t see insurance as an investment since I am investing in Mutual Funds.

  18. i am ravichandran working in central government i need clarity about in postal life insurance plan name is endowment assurance vs convertible endowment assurance.convertible endowment asssuance bonus rate is high compare to endowment. i need insurance from postal only reply me

    1. parameswar behera

      please.. now pli i. e india post is providing online payment of premiun, one can pay premium in any post office as the system has been upgraded to core solution. plese update your knowledge before suggesting. your knowledge regarding pli is outdated.

  19. Sir,
    I am interested to make a policy for children, Which is the best insurance (Postal insurance or LIC ) best ?

    Yava insurance best heli sir, kadime bandavala hecchu bonus.

  20. Sir, mai anil to Si mai kaha investment karu jisme muze 20 saal bad kuch achha benifte milega , sir mar 20 saal take 6000 rs monthly investment karna chahata hu plz ,

  21. Sir, plz app koi aisa lic or pli me koi ek aisa plan batao jisme muze investment karnese last me achha benifte mile Koi ek ya do plan ka sajesan do plz ,

  22. Sir, mai Sarkari karmchari hu or abhi meri age 30 year hai or mai 20 saal ke liya koi bhi policy (1500000) Lena chahata hu Or mai manthly 6000 rs investment karna chahta hu , sir bataye ki 20 saal bad maximum amount kaha investment karne se milega lic. Pli ya or kahi , plz replay,

  23. Sir,
    I have a PLI and have been paying premium for the last 6 years and have to pay more 4 years. My majority date is on 2020. Im paying RS 9350 par month. Coming December Im shifting / Migrating to UK with my family .
    What can I do for my PLI? IF I continue till 2020. Can I get the return? ( Im Queting My center goverment job )
    Do I need to be in goverment job when the turn over?2020
    I already paid RS 673200 till now!!If I surrender now how much I can get return?
    Thank you so in advance for your help

    1. Sir,
      I have one more question, I already paid for 6 years so if I not pay any premium from now onward and wait till majority 2020, How much I get ? Please suggest me!!! I went to my local post office, thy dont have idea?
      Thanks again in advence.

      1. Sir,
        If I surrender now I will not get what I paid right?
        How much I get if I continue till maturity without paying a rest premium, I already paid for 6 years ie Rs672300
        Thanks

    2. parameswar behera

      you are still eligible after quiting the job also.. all you need to pay the premim through an authorised person.

  24. Sreenivasarao k

    I am central govt employee my date of birth 14/12/1986 I want save money which is insurance in PLI already I have lic insurance

  25. Sir
    I took a pli endowment plan for rs 100000/-
    Maturity amount as per calculation approxmately 198000/- in 17 years . Whereas lici offers maturity amount of rs 168000/’ for the same conditions . Still you say PLI is not better than LICI ? PLI agents re available for your kind information.

  26. send me new interest rates in post office deposit till the date 1/7/16 . because June 15 announced the new interest rates .every 3 months changes in interest rates so send the message

  27. send me new interest rates in post office deposit till the date 1/7/16 . because June 15 announced the new interest rates .every 3 months changes in interest rates so send the message

  28. sir, I am a state govt employee and kindly guide me whether shall I invest in Postal life insurance or sukanya samridhi yojana? In my opinion post insurance is better as it offers both life insurance and bonus whereas sukanya samridhi yojna offers only interest ? please guide me. Thank you very much.

  29. which policy under LIC will fetch good returns which one you suggest and i can spend maximum of Rs. 5000/- per month

  30. sir im paying pli of rs 500000 under santosh how much amount shall i received approx.?
    shall i pay another pli policy ?
    plz tell me the different pli policies details as they are not understandable in that site

  31. sir i have a 20000 Rs insurences in lic jeevan anand(13700) and bajaj allianz(6500) now iam decided take a another policy in postal.which is the better inPLI policy?(now i will be pay 4000Rs)

  32. Hi Sir,

    I am planning of to take PLI of 5Lakhs coverage. I am 27 years old now and I am planning to take the policy till I reach 45 years. Could you please let me know which PLI policy suits me.

    My premium amount for a year was approx 25000. I am looking for investment and how much I will get in the end?

      1. My Motive is also same sir.. I am looking for investment not insurance.. Could you please suggest?
        Target Apprx 10-15 lakh rs after 15 years 9 in 2031.

          1. Thanks

            Please guide regarding Mutual funds.. I am looking to invest in mutual funds in this month. Can you please suggest which mutual funds are better .

            Regards
            Vaibhav

              1. As per your blog ,Today i purchased HDFC mid cap opp fund (G). Is there any locking period in ELSS mutual funds? Is it good options to invest small amount in different mutual funds or better to invest large amount in single mutual funds.

                Pl revert

                  1. Thanks ..
                    So i will invest 3 K in both ELLS funds Franklin India Tax shield & ICICI Pru long term equity fund ..
                    Should i invest in PPF by escaping one of mutual funds or better to invest in Mutual funds by avoiding PPF.
                    Motive is tax saving with better returns.
                    Pl revert

                    Thanks & Regards
                    Vaibhav

                    1. Ok sir Thanks for your below reply.. Means PPF is safe option and i should invest in PPF also along with MF.

                      Thank you very much.

                      Best Regards

                  2. Sir, i am looking to invest in following two mutual funds-1.ICICI Prudential Long Term Equity Fund (Tax Saving)
                    2.Franklin India Taxshield Fund.

                    please guide whether it is safe to invest 5 K per month in one mutual fund or to invest in 2.5 K both.

                    I read somewhere from blog of another financial expert-
                    Investing in more than one mutual fund under same category would tantamount to overlapping and results in increasing risk without increasing the return.

                    Please guide.

                    1. Hello Sir.

                      I am planning to purchase ICICI long term equity fund ( Growth) for tax saving for which lock-in period is 3 years. But i just came to know that lock-in period is 3 years from the date of SIP. like if i start SIP from june 16-june 19.then after 3 years i can take back only first installment and for June 19 installment i have to wait for June 2023. Actually i did not know it. Now please suggest should i invest single amount (Lump sum) like 50 K in mutual funds so that i can use it after 3 years or SIP is better.
                      I am confused. please guide

                      Best Regards

                    2. Thanks for reply. Now i Got your point. Ok i can invest for 5 + yr than which mode is better SIP or lump sum.

    1. for this detail planning please send ypur mail address we will provide u detailed planning according to your requirement

  33. i have started 3 pli policies in 2016 premiums so heavy load so iam both 3 pilicies combain (join) to the one policy in 1 premium it is possable

  34. Hi Sir,

    I am working in PSU. I have PLI (Endowment) for Rs.5,00,000. I am planning to take Home Loan for which I have to pay huge EMI. I was not aware of the differences between Money Back/Endowment/Term Plans when I took the PLI Policy. I thought as it is restricted only to Govt. Sector employees, it will fetch good results at the end, compared to policies from private companies. Now, I am well aware of the insurance and investment.

    My question is, how much do I get for the Endowment policy of Rs.5,00,000. I am paying Rs.1400 (including tax) for PLI which is up to 2039. Is it better to continue this or shall I cancel PLI and invest Rs.1400 in other schemes. In such case, please suggest some good schemes, both Govt. and private.

    Also, I have taken LIC Term Plan for Rs.25 Lakhs (which I feel is not enough) for which I am not sure whether I have given smoker or non-smoker status (I was unaware and the agent didn’t asked this). I was a smoker but not smoking since 1 year and will not smoke in future. Now, how should I go with Term Plan.? Shall I cancel both PLI & LIC and go for Pure Term Plans SBI/HDFC/ICICI etc. Please suggest sir.

    Thanking you.

    1. Sanjay-The returns will be around 7% to 8% to the maximum. Now decision is your’s. Before cancelling the existing LIC term insurance, first buy the one with proper coverage. Once the policy is issued, then cancel the existing one.

      1. Hi Sir, I have taken 50 lacs Term Plan from Max Life.

        I have paid PLI only for 4 years (less than 5 years), does the tax relief granted earlier under 80C will be revoked.? In such case, what do you suggest? Shall I continue the policy for 1 more year and make sure that I don’t have to face tax complications. More over, there will be Bonus after 5 years.

          1. Thank you sir.

            Sec 80C Reversal-Benefit you availed under Sec80C will be reversed if your policy closed or terminated >> within 2 years << for traditional policies and 5 years for ULIP products after the date of commencement of policy.

            In my case as it is crossed 2 years, no reversal of 80C.

            One more query, will thereby any Tax on Surrender Amount received? Can I claim these 6 months premiums under 80C in AY 2017-18 even after surrendering? I am not worried about losing money but want to make sure that I follow Tax Rules.

  35. sir i have three pli policies.due to high amount of these three policies i think i want to join it in a single premium .give me suggestions

  36. Hi.
    i am planning to invest in two or three different modes like PLI, ( as you stated above that there is low premium and high bonus), PPF & mutual funds.
    Is it good or should i invest in other options.
    Pl suggest which mutual funds are better for investment 9 (for short term). i don’t have knowledge regarding mutual funds,

    Pl suggest.

    Thanks & regards
    Vaibhav

  37. I need all the types of Rural postal life Insurance forms. Could you please send me the links or forms. Thanks

  38. Hi..

    I want a investment plan for 15-16 year so that after maturity, i can use maturity for my child education. Can you please suggest which plan would better to accomplish my goal.
    Child plan or other insurance plan or any other investment plan.

    Is it safe to invest with private companies.

    Pl suggest

    Thanks

    Vaibhav

      1. Thank you very much. You provided very good information in your blog.
        Actually i am planning to invest in two or three different modes like PLI, ( as you stated above that there is low premium and high bonus), PPF & mutual funds.
        what do you advise?

      2. Pl suggest which mutual funds are better for investment. i don’t have knowledge regarding mutual funds,

        1. Hi Sir..

          Currently i am investing in following modes

          Bajaj life insurance 10300 per anum
          Reliance Life insurance 2500 per anum
          ICICI pru long term equity fund 36000 per anum
          HDFC MID cap opp fund 24000 per anum
          PPF 36000 per anum
          Term plan 8000 per anum
          Health Insurance 7000 per anum.

          I am looking for more investment. Our total income is ~ 10 lakh per anum.
          Basic goal is to have 10 to 15 ~ 20 lakhs after 15 years for child education. Please suggest where should i invest for long term. As per your suggestion i am thinking to invest in Franklin India bluechip fund or Franklin India Tax shield. If i invest in Franklin India Tax shield i can get tax benefit also.

          Please where i should invest and how much ? Today i will start ppf for 3 K per month. Should i increase this amount also…

          Best Regards
          Vaibhav

          1. Vaibhav-Thanks for sharing. For your 15-20 years goal, you can start with one large cap fund like Franklin India Bluechip Fund and in debt in PPF. Make sure the ratio be between debt:equity of 30:70.

            1. Thanks for your reply sir…

              Means if i am looking to invest 10 K per month then i should invest 3 K in PPF and 7 K in equity. Am i right sir?

              Sir please repy for following two queries-
              1. for investment in equity, should i invest 3.5 K in two long term funds or better to invest 7 K in one fund.

              2.For long term can we select ELSS fund (Franklin India Tax shield) for 15 year investement as by investing in ELSS we can get tax benefit also..

              Please suggest

              Thanking you
              Best Regards
              Vaibhav

                1. OK Thanks Sir…

                  for long term can we invest in these funds.

                  Icici pru long term equity fund (3 K per month)
                  Franklin India Tax shield (4 K per month)

                  In current scenario i have purchased ICICI pru long term for 3 years.. i will continue up to 15 yrs.

                  But you advised for one large cap and one small & mid cap fund. If these types of funds are better then i can avoid ELSS fund..

                  Pl advise.

                    1. Sir how can we check that overlapping is happening…

                      Finally my equity mutual fund portfolio would be as follows. ( Target 15 to 20 years)

                      ICICI pru long term equity fund 36000 per anum
                      Franklin Tax shiled 48000 per anum
                      HDFC MID cap opp fund 24000 per anum

                      how can i check that is there any overlapping?

                      Please suggest or this portfolio is ok.

                      Best regards

                      Vaibhav Jain

                    2. Thanks Sir

                      I started Icici long term fund just one months before. Should I leave it..

                      Still i did not purchase Franklin tax shield if you suggest i can avoid this to avoid overlapping and i will go with Franklin India Bluechip…

                      I am unable to check overlapping by Mutual Fund Portfolio Comparison Tool provided in above link..

                    3. Vaibhav-If you already started ICICI, then wait and watch. Regarding Franklin ELSS, I not said you to stop. But I sugested you to check overlap. There is no tool in my shared link. But an excel sheet, which you have to download and check on your own.

                    4. Thank you sir…

                      Yes Sir, After reading of your blog, i have already started Icici long term equity fund ( ELSS fund) last month. If you recommend to stop this i can ..
                      But if you are saying to wait i will continue it..
                      Sir i have already downloaded excel sheet but it is not working..
                      I am unable to check overlapping if i am planning to purchase one more ELSS fund i.e. Franklin.
                      Can you checke whetger it will overlap.

                      Thanks & Regards
                      Vaibhav

                    5. Sir what is your opinion about FUNDS INDIA online portal?
                      Should i buy Mutual funds through funds India as i don’t have idea about mutual funds

                      Please revert.

                    6. Ok sir thanks..

                      One more online portal Jago investor is available.. How is it? I mean which is better among both

  39. sir i am start 1 jeevan anand policy and 3 pli policies i would surrender one policy whoch policy is best result given by me(surrender result)because some financial problem lic start in 3 year before and pli started in two year befote

  40. akhilesh kumar varma

    sir i taken jeewan anand policy 20 years plan ….now is my policy better than pli that amount?

  41. Ques- please let me know what is F.A.B- Final Additional Bonus in LIC Jeevan Aanand Policy?
    Because when I searched the maturity amount for 10 lacs policy amount for 32 yrs period it was total 4150000/- in Jeevan Anand,
    Policy amount : 1000000
    Bonus : 1600000
    F.A.B. : 1550000
    ———————
    Total- 4150000/-

    But in case of PLI for the same amount 10 lacs and period 32 years, it shows maturity total only- around 2850000/-

    Please clarify it, what is this FAB, which would be better?

  42. ardhendu duari

    Dear sir ,
    if a person opened in EA Santosh PLI SA 400000, for 30 years, how much he will get after 30 years complete?

    again , in that conditions, a Agent what amount received or commission received?
    thanks

  43. sir,
    how to change my PLI EA nominee ?
    have any format or form for this please send me. . .

    another question, suppose I will death, any reason, in terms of premium period what will benefit to nominee in EA Santosh PLI?

    1. Ardhendu-I think they have form. You visit the post office. If policy is running and in case of death of policy holder, nominee receive sum assured and bonus accrued at that point of time.

  44. Sir, I started PLI EA-45 policy during October 2006 and took loan during January 2010 and repaid loan during 2012. Will it impact my yearly bonus calculation. My maturity is Oct 2016.

  45. I have a RPLI Santosh Endowment Assurance Plan. Sum Assured = 100000, Maturity Term = 60 Years, Entry age = 42 Years, Premium = 465/-.
    So what we got on the maturity date.
    Please help me.

  46. I got nice information about PLI and LIC,Thank you,sir. I have a doubt ,please clarify it.Already i have a PLI for Rs-1000000, is it possible to get policy for Rs-5000000.

  47. I’m paying every month rs 162/- as service tax for my pli premium. Can i show this service tax under savings in income tax filing?

  48. I have a PLI Policy which is 500000 sum assured & for 30 years. I want to reduced the time from 30 years to 15 years. Is it possible?

      1. Thank you very much. I have another queries regarding my LIC policy. It is 15 years endowment policy. But Due to financial problem, I gave only 3 years & stopped. It will mature in 2024. may i wait for maturity time or it will be better to withdrawal it now?

  49. Plz suggest.i want to to take up a policy for investment not insurance.i can pay monthly premium of 10000.
    Suggest the name of policy with high returns anf which company

  50. Could you please explain about the settlement of death claim cases in which payment is less than three years? And also about the death claim settlement in which policy is lapsed?

    1. Rinisha-Whether the policy is a day old or 10 years old, the process of death claim settlement is same. Regarding lapsed policies, nominee will receive the paid up amount (again depends on term of policy and how long the policy was in continue).

  51. below i explain u the endowment plan in lic and poat office
    type : endowent assurance (all 3)
    company : lic pli-postal rpli-postal
    type : EAP santosh gram-santosh
    sum assured : 5 lac 5 lac 5 lac
    policy tenure : 20 yrs 20yrs 20 yrs
    bonus rate
    (per 1000) : 42 58 50
    accumlated bonus : 420000 580000 500000
    maturity value : 9,20,000 10,80,000 10,00,000
    online facility : yes yes yes
    who can avail? : lic – anyone pli- govt employees, psu, govt aided- school colleges, military & govt related… rpli – any rural people

  52. Hi admin.. good post. your efforts r most welcome. dear bloggers dont think insurance as an investment. it is a risk coverage. below i explain u the endowment plan in lic and poat office
    type : endowent assurance (all 3)
    company : lic pli-postal rpli-postal
    type : EAP santosh gram-santosh
    sum assured : 5 lac 5 lac 5 lac
    policy tenure : 20 yrs 20yrs 20 yrs
    bonus rate
    (per 1000) : 42 58 50
    accumlated bonus : 420000 580000 500000
    maturity value : 9,20,000 10,80,000 10,00,000
    online facility : yes yes yes
    who can avail? : lic – anyone pli- govt employees, psu, govt aided- school colleges, military & govt related… rpli – any rural people

    1. Ramanan-Forget about other bloggers, but I never considered insurance as an investment but only an insurance product. That is the reason, I promote pure insurance product like Term Insurance but not the dummy products of what you shared.

    1. Hello RP

      PLI limit has been increased upto Rs. 50,00,000 sum assured. You can increase your sum assured by opting for another policy.

      Thanks
      Raman Kumar
      DO PLI , Delhi Circle

  53. My rpli policy maturity due on 27/11/2015 still I have not found the claim settlement intimation or cheque I have already handover the document policy no. is R-MH-GR-EA-A8663

  54. Swajan Kumar Patla

    Sir , lici’s connectivity from rural to urban, not only that all peoples are covered under one platform but it is not from PL I

  55. Sir,I have opened PLI on March 2013 and paid premiums upto February 2015. After that discontinued , for revival in post office they are telling that requires medical fitness certificate. I don’t want to continue the policy, how I can surrender my policy as it had not completed 3 years. Plz suggest.

  56. I am physically handicapped. Employee of railway..is their any kind of terms and condition for pli investment limitation and life coverage..

  57. Sir,

    I am having one PLI policy sum assured of Rs. 100000, since March 1993 with premium Rs.235/month. It will be matured on Dec 2028.I want to close it now.

    Kindly reply that how much will I get including bonus till now.

    I am MTNL Delhi employee.

    regards

    gopal kumar kool (Manager)

    1. Hello Gopal Kumar

      You will get the surrender value on closing it now. The exact surrender value can be calculated if you could provide your policy number.

      Thanks
      Raman Kumar
      DO PLI, Delhi Circle

  58. I have face a problem regarding my PLI premium. I have buy a PLI in the year january 2015. In the 1st year service tax charge@ 3.5% & after that it reduces to 1.75%. During the payment of premium from oct- march the post office personnel wrongly charges my tax upto march 2016 @3.5%. But actually I have to pay it up to December 2015@ 3.5%. Now my question is that how I can adjust the extra amount paid or return back. Where I have to complain?

        1. The points which may be worth mentioning are

          1) There is policy called RPLI for all those who cannot be covered by PLI.
          2) To purchase a PLI policy, it is not necessary that you go to Post office. Like Private company, every staff of Post office is bydefault an agent (it is part of duty). So you can contact any postal staff and buy a policy. Offcourse online purchase is not there and very soon it will be available as our platform is now transfering to McChamis software.
          3) You have to go to post office to pay premium which is true but it is not a hard task to find out a post office anywhere in India. Every 3-4 kms, you will find a post office in the city and there is a post office in every town. Premium can be paid online for PLI also. Here is the link to pay online premium. https://www.epostoffice.gov.in/Login.aspx?service=PLI

          “Even though PLI offers you higher return and lower premium compare to LIC and other private insurers, the returns in the long run may erode drastically if you consider the inflation.”

          This is true for all plans but it is not completely correct. For eg-If i am taking a policy of 20 years, and paying premium @ 2000/- every month, the value of my monthly investment is also automatically become less due to inflation. I am not investing 20 lakhs at once but paying monthly for 20 years. As the maturity value after 20 years is less due to inflation, my investment of 2000/- a month is also become no amount in 20 years though it may have some value in 2015.

          Let me share an example. I bought a policy in 2004 and paying monthly premium of Rs.535/-. The policy is maturing in 2019 and expected to get around 2.15 lacs. In 2004, my premium of Rs.535/- was a bit big amount but in 2015, it have very little meaning so do the maturity value. But 2.15 lacs is also not a big loss for my total investment of 96300/-.

          “Along with that, you will be under insured due to restricted maximum insurance limit.”

          -> We know that there is limitation but very few govt. servant have taken any policy of 50 lacs. Most of them purchase 5-10 policies but never able to reach maximum amount. So limiting to 50 lacs may be a problem for some but not for all. Moreover it is not term policy so it is perhaps not a big issue.

          “Post Offices still not customer friendly”.

          We can only improve in this sector thought it is not the worst. At least there is higher authority where u can complain directly if anyone does not listen to your problem. Once policy is taken there is no point of any insurant to depend on the officials except Maturity or death case settlement (if happens)

          “So you may face service issues and claim settlement issues”

          -Sometime it happens but we cannot generalize. If there was deliberate attempt to conceal facts during the purchase of policy some complicity arises at the time of death case settlement but there is no such case in Maturity settlement.

          Hope this helps.

          1. Nasir-1) RPLI is an Insurance or INSURANCE WITH INVESTMENT?
            2) Whether such staff will come to my home and sell PLI? I know their rude behavior and 1942 mindset. They feel as if we are their servant.
            3) Outdated services will die down soon, especially when the world is moving investor friendly or customer friendly. If they not adjust then they have to die. Best example is NOKIA.
            4) Only few taken Rs.50 lakh insurance. Because lack of knowledge about insurance and such products sold as investment tax saving tools than the insurance.
            5) Few years back when I went to Post Office to open PPF, then the first question asked to me is why you NEED PPF? Is the right attitude of Post Officials? Strange that they even don’t know how schemes work.
            6)

          2. Irappa M. Halagali

            Dear Mr. Nasir Ahmed,
            I appreciate your efforts and good reply to a biased (or mayn’t have full knowledge) author. PLI is better in all respect compared to LIC and private companies. Say Less premium, High Bonus are must for good returns! whereas author is degrading these points. Settlement problems are equally high in LIC and private co., Any way thanks to author for providing basic ideas to all.
            Iru

  59. Is PLI have service tax on premium?
    Where do I get the latest years bonus in PLI?
    How much late fee interest charges on premium?

  60. I dont want insurance . i want to invest . my requirements is investment; tell me the correct way of investment in good firm. Thank u basu

    1. Insurance is also an investment. The death insurance is an additional feature your family will be availed on your death. Since we have endowment policies, you will be getting maturity benefit which may be called as return of your investment.

        1. Dear Mr. Author of this article.. you are too arrogant in your replies to Nazir. He is better in explaining things than you. You got a bad shot at some post office and you are blaming all the post offices. This is not good. Only god can save ? what kind of reply is this. The comment from Nazir is more useful than your article which is just a partial copy paste from India post website. Respect people with knowledge.. Else god even can’t save you. Not always insurance needs to be just insurance. It can be investment also. Each one has their own view of things. you see it just as a protection. others may view it as a return on retirement. Respect other’s view and be polite when replying to the blog readers. Act like a moderator not as a dictator. your ideas may not always be correct.

          1. MMV-When the so called knowledgeable person unable to understand the importance of INSURANCE and INVESTMENt, then what word can use? I never go arrogantly on any issue. But do remember that when you enter post office, see the work culture they adopted. It is purely of 1942, where they treat us as we came to trouble them. This will not work in today’s competitive customer centric world. When whole world is moving online and customer friendly, if the post office still operating with the idea of what they set long back, then no can protect them. This is the realy and that is why there is a huge courier business in India. I am not saying that my view must be supreme or all must follow the same. But when it comes to insurance, then in what way such insurance+investment products give support to family?

    2. Irappa M. Halagali

      Don’t mix insurance and investments…. else you will loose…. If you mix, the result is, you will achieve neither of them!! Have a term plan with highest sum assured you can offored(emi) now and invest in either high risk equity market or moderate risk mutual funds…, or low risk FD etc… depending upon your age and risk taking profile. Iru

  61. Sir,
    I am 29 years old. I already have LIC Policy. Now I want to invest some money so that in future I will get some money. would u suggest me which Investment plan is better for me to Invest Money.

    I can Invest 30,000 to 50,000 annually.

  62. Dear sir, kindly guide me, I was born in July/1971 and presently working as government teacher . I am running the age of 45 (44+). kindly guide me what should I do, to maintain a PPF Account or move to take a PLI approximately 15 lacs @ monthly premium 8,000 pm. which is beneficial. I have also have one LIC policy for 10 year also. Sir, I have tow children 18 years 12 years they havenot any policy or investment. please guide me.

  63. I WANT TO KNOW ABOUT LAST TEN YEARS BONUS RATE OF PLI FOR YUGAL SURAKSHA. I HAD TAKEN 20 LACS POLICY FOR 20 YEARS

  64. Sir, my age is 25 i want to buy LIC policy ……Kindly suggest me which plan is best whether new jeevan anand or Jeevan Rakshak for 20 years term

      1. My wife is a teacher(State Govt.) & her age is 44 years.She already have 2 insurance pilicies.For Income tax rebate purpose & also for investment purpose which is more profitable PPF,PLI or LIC or any other you suggest.

  65. sir i” newly recruited bank employee.
    why one should prefer pli or lic , they will give return only 4-7% return,
    other than that ppf will give 8.7% return.
    After completion of installment(upto 20years), is there any bonus.
    or is there any bonus , in case of death before completion of installment

    1. Rakesh-Yes, that is the reason I am against both 🙂 Bonus will be there in participating policies and will be payable in both the cases like maturity as well as death claims (accrued bonus will be payable).

  66. Why is the premium for whole life assurance so low as compared to endowment plan whereas the maturity is more in whole life?

    1. Vicky-You already answered to your question 🙂 It is low because maturity period is so long. Longer the term of policy will usually come with lesser premium in such traditional plans.

  67. sir i want to know which one i should prefer lic or pli. i want to save my income tax around 20000 per annum.also want good bonus.

  68. Sir i brought pli santosh policy for 19 yrs with premium 415 per month sum assured is 100000.what will be approx survival benefit for me after 19 yrs.

  69. introduce of online in pli is very esay to pay .every time not possible to go to the same post office where pli started

  70. bhanu shrivastava

    my mother policy 5 lakh santosh for seven years but security fifty lakhs so please calculater maturity benefit

  71. Myfriend has taken PLI in 2014. His term is WLA/55. Monthly premium is Rs 315 for sum assured of Rs 100000 and last premium date is Dec 2031. I assume that

    He has to pay premium up to the age 55 years (till 2031).
    Nothing will be received till he is alive.
    Nominee (after his death) will receive 100000 + (yearly bonus x No of policy years till his death)

    Thanks & Regards

    Arun

      1. Yes,…While insurance cover for full SA starts with all LIC policies next day itself, in PLI first year its just 30%, second year 60%, 3rd year 90% and only after 4th year its hundred percent..Its available in PLI’s website in rules document.Again the myth that PLI offers better returns too is not fully correct. LIC offers final additional bonuses for policies of bigger terms and this compensates the shortage of yearly bonuses.Its because of a conservative strategy adopted for the sake of the bigger masses covered by LIC and also because a majority r going for terms bigger than fifteen in LIC.

        1. Deepak-Can you share the link which states that life risk in PLI not starts immediately? Also, when we compare total return, what % of this Final Additional Bonus be? Hardly 1%. However, in PLI, premium is lower and bonus is higher side. So defenitely PLI is an edge over LIC traditional plans.What is BIGGER MASSES and BIGGER 15? Also may I know what is LIC’s or your CONSERVERATIVE STRATEGY for buyers?

  72. Joydeep Choudhury

    Post Office PLI is about to get a face lift and considering the fact that there are more than 200000 + Post Offices in the country and 70 per cent of the country’s population lives in Rural India , PLI is opening up its tentacles to tap the market, particularly the Rural Market….. IRDA has hinted that it will soon scan PLI products and bring the GROUP under its purview… Insuring with Post office has its plus points…But I do admit that the sector is not as organized as LIC but the BONUS rates of PLI products are enviable… I too cannot purchase a PLI product but I feel that it is more Govt monitored than Post Office monitored or guided and The Insurance Amendment Bill 2014 will help PLI or RPLI get a renovated look………

  73. Hi sir,
    Why PLI is not regulated by IRDA, when every insurance company and associates, and brokers are regulating by IRDA.

    1. Manjunatha-It is more like a social cause than a business. That may be the reason it out of IRDA perview. But if competition exceeds then I think it will also comes under IRDA. But good question 🙂 Even I too not thought about this.

  74. Hi sir,
    I am saranya kanagavel. I would like to invest @ Insurance.
    my details :
    age : 28 yrs
    Sum assured : 2 LAC.
    I can able to pay 8000 to 10,000 per annum.

    I here about RPLI ( Rural Postal life Insurance also).so, compare to RPLI and LIC which is better ?
    which is getting high bonus and High Maturity value ? which is get less premium ?
    and suggest me which type of Insurance plan is better ?Endowment Plan OR some other plan which is better suggest me.
    RPLI and LIC which is better @maturity value ?

    I am waiting for ur reply.

    thanks in advance.

    Regards
    K.saranya.

    please clrify my doubts.

      1. Hi sir,
        I am saranya kanagavel. I would like to invest @ Insurance.
        I plan to invest in RPLI @20 years , approximately I can able to pay the premium Rs 10,000 /- per year
        So, I memtioned 20×10000=2 Lac Sum assured. maturity value may be 3.8 to 4 Lac.

        I here about RPLI ( Rural Postal life Insurance also).so, compare to RPLI and LIC which is better ?
        which is getting high bonus and High Maturity value ? which is get less premium ?
        and suggest me which type of Insurance plan is better ?Endowment Plan OR some other plan which is better suggest me.
        RPLI and LIC which is better @maturity value ?

        I am waiting for ur reply.

        thanks in advance.

        Regards
        K.saranya.

        please clarify my doubts.

    1. Hi sir,
      I am saranya kanagavel. I would like to invest @ Insurance.
      I plan to invest in RPLI @20 years , approximately I can able to pay the premium Rs 10,000 /- per year
      So, I mentioned 20×10000=2 Lac Sum assured. maturity value may be 3.8 to 4 Lac.

      I here about RPLI ( Rural Postal life Insurance also).so, compare to RPLI and LIC which is better ?
      which is getting high bonus and High Maturity value ? which is get less premium ?
      and suggest me which type of Insurance plan is better ?Endowment Plan OR some other plan which is better suggest me.
      RPLI and LIC which is better @maturity value ?

      I am waiting for ur reply.

        1. Dear Sir,

          yes, I understood sir. I would like to take a policy for my life insurance only.so, for the Insurance, Which is better RPLI or LIC.
          other than the Insurance, for the Investment case, which type of Money investment plans are good ? please suggest me.

      1. siddhalinga swamy s s

        I thank you for all information.I would like to know that whenever we pay the insurance premium Govt deducing some amount as service tax is’nt it demotivating investors

          1. S bhattacharjee

            I think y forgot to say about the commission of agent of both p.l.i and l.i.c policy. L.i.c agent take more more commission than p.l.i.so obviously the bonus rate is high of the p.l.i policy. I think its around 58 rupes.i challenge that none of the l.i.c policy give that kind of bonus because maximum of my premium goes to agent or company, s pocket first 5 to 6 yrs.

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