Grama Suvidha Rural Postal Life Insurance Scheme (RPLI)

Gram Suvidha was introduced in 1995 based on an observation shared by the Malhotra Committee based on the limited penetration of insurance buyers in the country. This is a Postal-led life insurance policy that provides comprehensive coverage for the rural Indian population. Such initiatives emphasize on the importance of insurance in the lives of people and how an insurance policy can act as financial aid in times of need.

RPLI Gram Suvidha Scheme

Given below is a brief overview of RPLI Gram Suvidha:

Aspect	Details
Scheme name	RPLI Gram Suvidha Scheme
Eligibility	Rural residents, individuals aged 19 to 55 years
Sum assured	Ranges from Rs. 10,000 to Rs. 10 lakh
Policy term	5 to 15 years
Premium payment	Monthly, quarterly, half-yearly, or yearly
Benefits	Life cover, maturity benefits, and surrender value
Tax benefits	Premiums eligible for tax deduction under Section 80C

 

What is RPLI?

Rural Postal Life Insurance or RPLI, also known as Gram Suvidha, was introduced on March 24, 1995, to cater to the rural populace of India. In 1993, the Malhotra Committee highlighted that merely 22% of the insurable population was covered, with life insurance funds comprising just 10% of gross household savings. Consequently, the Government endorsed the committee's recommendations, enabling Postal Life Insurance to expand its reach to rural regions due to the extensive network of Post Offices and cost-effectiveness. The primary aim of Gram Suvidha or RPLI is to offer insurance coverage to rural communities, with a focus on weaker sections and female workers, while also fostering insurance literacy among rural residents.

What is Convertible Whole Life Suraksha?

A convertible whole life insurance policy allows the original whole life coverage to be transformed into an endowment assurance policy after a specified period. With Gram Suvidha, this conversion to endowment assurance is possible after completing 5 policy years, combining the advantages of Gram Suraksha (whole-life insurance) and Gram Santosh (endowment assurance). Initially, you receive the benefits of whole-life insurance, with the option to convert after 5 years. It's important to note that if the policy isn't converted within 6 years of its term, it will remain a whole life insurance policy exclusively.

If you are looking to buy a life insurance policy, then you can check the policies available at the Bajaj Finance Insurance Mall.These policies provide comprehensive life cover at affordable premiums.

Benefits of Gram Suvidha policy

Given below are the key features and benefits of Gram Suvidha:

• Coverage will be provided up to the sum assured amount along with accrued bonus until maturity age is reached.
• In the event of death, the assigned individual, nominee, or legal heir receives the full sum assured amount along with accrued bonus.
• Option to convert the policy into an Endowment Assurance plan available after 5 years, but no later than 6 years from policy inception. Failure to convert results in the policy being treated as a Whole Life Assurance.
• Loan facility accessible after 4 years.
• Surrender option available after 3 years.
• Insurance policies offered through PLI provide tax benefits, primarily under Section 80C.
• A Duplicate Policy Bond can be issued with a simple application if the original Policy Bond is lost, damaged, burnt, torn, or mutilated.
• Bonus is not applicable if the policy is surrendered before completing 5 years.

Coverage and premium for Gram Suvidha

Given below are the coverage details of Gram Suvidha:

Minimum sum assured	Rs. 20,000
Maximum sum assured	Rs. 50 lakh
Bonus	Rs. 76 per Rs. 1,000 per year This is for whole life assurance policy if not converted to Endowment Assurance

The monthly premium to be paid on coverage for Rs 5,000 with a payout upon death, alongside the opportunity to convert the policy into an Endowment Assurance plan at the end of 5 years from the start, with maturity at a specified age, under the Gram Suvidha scheme, is given below:

Entry age (in years)	Monthly premium to be paid for the first 5 years and thereafter if the option is not exercised but ceasing at the age of 60 (in Rs.)
19-20	7
21-24	8
25-28	9
29-30	10
31-32	11
33-34	12
35-36	13
37	14
38	15
39-40	16
41	17
42	18
43	19
44	21
45	22
46	24
47	26
48	28
49	30
50	33

 

Documents required for rural Postal Life Insurance policy issuance

Given below is the list of documents required for issuing Rural Postal Life Insurance Gram Suvidha Policy:

• Valid proof of age. In case a valid age proof is not available, you can present any of the following documents:
  • Self-declaration attested by Panchayat member/Gram Pradhan.
  • Medical officer’s appropriate age certificate.
  • Voter ID bearing age.
  • Aadhar card

Eligibility criteria for Gram Suvidha

Discussed below are the basic eligibility details for Convertible Whole Life Assurance (Gram Suvidha):

Aspect	Age eligibility
Minimum age at entry	19 years
Maximum age at entry	55 years
Maturity age for the whole life	80 years

Also, read: Pradhan Mantri Vaya Vandana Yojana

Features of Grama Suvidha Rural Postal Life Insurance Scheme

Feature	Description
Target Audience	Designed specifically for rural populations, including weaker sections and female workers.
Coverage	Offers a range of life insurance products tailored to rural needs.
Accessibility	Utilizes the extensive network of Post Offices to ensure easy access in rural areas.
Affordability	Cost-effective insurance options to suit the financial capacities of rural residents.
Tax benefits	Policies are eligible for tax benefits under Section 80C of the Income Tax Act.
Flexible premium payment	Provides options for flexible premium payment schedules to accommodate varying income levels.
Financial inclusion	Aims to increase insurance penetration and financial literacy in rural communities.

 

Rural Postal Life Insurance customer guide

• Understanding policies: Familiarise yourself with the different types of policies available under Rural Postal Life Insurance, including life cover and savings plans.
• Application process: Visit your local post office to obtain and submit an application form. Ensure all required documents are provided.
• Premium payments: Make timely premium payments at your nearest post office to keep your policy active. Various payment options may be available.
• Claim procedures: In case of a claim, contact your post office or visit the official Rural Postal Life Insurance website for detailed instructions and required documentation.
• Policy benefits: Review the benefits of your policy, including coverage amount, tax benefits under Section 80C, and any additional features.
• Customer support: For assistance or queries, reach out to customer support at your local post office or visit the official website.

How to buy RPLI Gram Suvidha?

Given below are the steps to buy RPLI Gram Suvidha:

• Visit your local post office: Start by visiting your nearest post office, where you can get detailed information about the Gram Suvidha policy and obtain an application form.
• Complete the application: Fill out the application form with required personal details and choose the Gram Suvidha plan that best suit your needs.
• Submit documents: Provide necessary documents, such as identity proof and address proof, along with your completed application form.
• Pay premium: Make the initial premium payment at the post office. Various payment methods may be available.
• Receive policy bond: Once processed, you will receive your Gram Suvidha policy bond. Ensure you keep it safe for future reference.

Other Postal Life Insurance (PLI) policies

Given below are basic details about a few other Postal Life Insurance (PLI) policies:

Scheme name	Age eligibility	Minimum sum insured (in Rs.)	Maximum sum insured (in Rs.)	Loan facility	Surrender
Whole Life Assurance (Suraksha)	19-55 years	20,000	50 lakh	After 4 years	After 3 years
Endowment Assurance (Santosh)	19-55 years	20,000	50 lakh	After 3 years	After 3 years
Joint Life Assurance (Yugal Suraksha)	21-45 years	20,000	50 lakh	After 3 years	After 3 years

Also, read: Pradhan Mantri Suraksha Bima Yojana

Bonus rates for Rural Postal Life Insurance Scheme for 2024

As per March 2024, the bonus rates for Gram Suvidha have been given below:

Category	Bonus
Whole Life Assurance (WLA)	Rs. 60 per thousand of sum assured
Endowment Assurance (EA) (including Children policy)	Rs. 48 per thousand of sum assured
Anticipated Endowment Assurance (AEA) (including Gram Priya policies)	Rs. 45 per thousand of sum assured
Convertible Whole Life Assurance (CWLA)	Rs. 60 per thousand of sum assured In case of conversion, Rs. 48 per thousand of sum assured
Terminal bonus	Rs. 20 per sum assured of Rs. 10,000

How to enrol for Gram Suvidha?

You can follow the steps given below to apply for Gram Suvidha:

Step 1: Visit the official India Post website (indiapost.gov.in/VAS/Pages/IndiaPosthome.aspx).

Step 2: Click on the ‘Postal Life Insurance’ option. You will be redirected to a new webpage.

Step 3: Then click on ‘Purchase a policy’, followed by ‘Quote.’

Step 4: Fill in the application form. You will have to fill in your mobile number, name, email address, date of birth, gender, occupation and state. Apart from this, you also need to add a few policy details like product type, product name and sum assured. Enter the captcha and click on ‘Get Quote.’

Step 5: After filling in all the requested information, the premium details will appear on the screen. You can proceed to payment and complete the buying process through the rural postal life insurance online payment system.

Overall, buying life insurance or health insurance and provide financial aid in times of medical emergencies which may also result in loss of life or livelihood.

Also, read: Difference Between Life Insurance vs General Insurance

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