The wait is over for Post Office Life Insurance policyholders to know how many bonuses they have earned in their policies. The government declared the bonus applicable to Postal Life Insurance (PLI). The Bonus rates will be applicable for Fiscal Year 2021-22 and will be effective from 01.04.2021. On all life insurance, the bonus has been set at Rs. 76 per thousand of the sum insured while for endowment insurance, including joint life and children policies, Rs. 52 for thousand of sum insured will be the bonus amount.
There are six post office life insurance policies to choose from, and all of them are traditional in nature – that is, unrelated to the market. These are Whole Life Insurance (Suraksha), Endowment Insurance (Santosh), Convertible Whole Life Insurance (Suvidha), Early Endowment Insurance (Sumangal), joint life insurance (Yugal Suraksha) and children’s police (Bal Jeevan Bima).
In accordance with the post life insurance rules (2011) and on the basis of the actuarial valuation of the assets and liabilities of the Post office life insurance fund (POLIF) as at 31.03.2020, the simple reversion premium on postal life insurance policies has been declared by the government. The amount of the premium will be paid as they fall due on the death of the insured or on the expiry of the policy.
Premium declared on postal life insurance policies
I. Whole Life Insurance (WLA): Rs. 76 per thousand of sum insured
ii. Endowment insurance (EA): (including joint life and child policies): Rs. 52 per thousand of sum insured
iii. Advance Endowment Insurance (AEA): Rs. 48 per thousand of sum insured
iv. Convertible Whole Life Insurance (CWA) policies: Whole life insurance premium rate would apply, but upon conversion, the endowment insurance premium rate will apply.
v. Terminal bonus Rs. 20 per sum insured of Rs. 10,000 subject to a maximum of Rs. 1,000 for whole life insurance and
Endowment insurance policies with a term of 20 years or more.
The postal life insurance policies are managed by the Post Office of the Ministry of Communications which provides the sovereign guarantee in the PLI policies.
Since 1894, Postal Life Insurance (PLI) has only been available to civil servants and semi-government employees, including employees of public sector companies, financial institutions, and nationalized banks. However, as of 2017, it was opened to a larger segment of the population. Life insurance policies under PLI have been made available to professionals such as doctors, engineers, management consultants, accountants, architects, lawyers, bankers, etc. and employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
In addition, the premium amount on rural post life insurance policies will be:
I. Whole Life Insurance (WLA): Rs. 60 per thousand of sum insured
ii. Endowment Insurance (EA): (including policies relating to children): Rs. 48 per thousand of sum insured
iii. Advance Endowment Insurance (AEA) (including GP policies): Rs. 45 per thousand of sum insured
iv. Convertible Whole Life Insurance: The whole life insurance premium rate would apply, but upon conversion, the endowment insurance premium rate will apply.
v. Terminal bonus Rs. 20 per sum insured of Rs. 10,000 subject to a maximum of Rs. 1,000 for whole life and endowment policies with a term of 20 years or more.