The Indian Post Office offers two popular life insurance schemes that provide financial protection at low premium rates - Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI). These schemes are designed to give citizens both insurance coverage and savings benefits with the added advantage of tax exemptions.
Available for: Government employees, private sector workers, and even college students.
Age limit: 19 to 55 years.
Premiums depend on age, policy term, and sum assured.
Bonus added every year to the policy value.
On maturity, the total amount (sum assured + bonus) is paid to the policyholder.
Loan facility and nomination option are also available.
Specially designed for people living in rural areas.
No education requirement - farmers, laborers, and small traders can apply.
Low monthly premium (as little as ₹175) can provide a sum assured of ₹1 lakh.
On maturity, returns can go up to ₹3.7 lakh, including bonuses.
Flexibility to choose endowment policies or money-back plans.
Low premiums compared to private insurance.
High returns due to annual bonus additions.
Tax exemption under Section 80C of the Income Tax Act (up to ₹1.5 lakh).
Policyholders can avail loan against policy.
Financial security to family in case of untimely death of policyholder.
Option to receive lump sum maturity or phased payouts (money-back).
Compared to private insurers, Post Office schemes are more affordable and reliable. They are government-backed, easy to access, and are gaining popularity in rural areas due to their simplicity and trust factor.