Grama Suvidha Rural Postal Life Insurance Scheme (RPLI)

Gram Suvidha is a convertible whole life insurance policy under the Rural Postal Life Insurance scheme that provides life coverage up to the chosen sum assured. The coverage continues until the policyholder reaches the maturity age, provided all premiums are paid on time. No medical examination is required if the insured is below 35 years of age and the sum assured is Rs. 25,000 or less.

RPLI Gram Suvidha Scheme

Given below is a brief overview of RPLI Gram Suvidha:

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 Assurance?

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.

What are Key Features Of Convertible Whole Life Policy - Gram Suvidha

Major Benefits Offered Under RPLI Gram Suvidha Policy

The RPLI Gram Suvidha Policy offers the dual advantage of lifelong coverage and the flexibility of conversion, making it one of the most versatile RPLI policies for rural citizens. It’s designed to meet both protection and savings needs with minimal eligibility restrictions and long-term benefits.

Benefits before policy conversion (Whole Life Insurance)

• Offers life cover until maturity age as long as premiums are paid regularly.
• No medical test required if sum assured is ₹25,000 or less and age is below 35.
• Premiums remain low in early years due to whole life structure.
• Suitable for individuals seeking long-term financial security without immediate savings goals.

Benefits after policy conversion (Endowment Assurance)

• Converts to a savings-oriented plan with lump sum payout on maturity or earlier death.
• Offers guaranteed returns along with life cover, ideal for future financial planning.
• Eligible for bonus additions as per applicable Endowment Policy norms.
• Best suited for policyholders aiming to build a secure financial corpus over time.

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.

Eligibility criteria for Gram Suvidha

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

Coverage and premium for Gram Suvidha

Given below are the coverage details of Gram Suvidha:

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:

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

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.