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Gram Santosh Rural Postal Life Insurance Scheme

Gram Santosh Rural Postal Life Insurance Scheme

Gram Santosh Rural Postal Life Insurance Scheme

Gram Santosh Rural Postal Life Insurance is an insurance scheme launched by India Post through its Rural Postal Life Insurance program. The plan supports individuals who want the dual benefit of investment along with insurance. The scheme is available to people of all economic backgrounds.


The Gram Santosh Life Insurance Scheme is an endowment plan that assures a limited sum when anyone invests in it. In addition to the assured sum, a bonus amount is also awarded in case of the death of the policy-holder. The nominee will receive the assured sum along with a bonus. The same policy also rewards the assured lump sum amount at the desired age set during the policy. It acts as a long-term investment plan as well as a life insurance policy.


  • The plan has been released for individuals only, for now. Individuals from the same family would need to invest in separate schemes with available no family grouping option.
  • Nomination facility is available to individuals as well as the families of the policyholders.
  • The payment can be made annually, half-yearly, quarterly, monthly, and via salary deductions.
  • After three full years of policy, loans can be availed from the policy created

Financial Assistance

Sum Assured

The minimum loan amount is Rs.20,000 while the maximum sum assured is Rs.10 lakh


The investment can be used as security to finance loans, but the bonus amount is not accounted for as security before 5 years of the policy being maintained.

Premium Payment

The premium can be paid via cheque. A receipt book is also issued from all Post Offices.

Income Tax Rebate

The policy offers deductions for the amount paid towards the scheme under Section 80C of the IT Act.

Bonus Options

The current bonus is set at 58% assured per year. Depending on the scheme’s performance, the bonus amount is subject to change.


Policyholders get a rebate of 2% on the annual premium for advance payments and 1% of the annual premium for six months paid in advance.

Grace Period

If you are unable to pay a premium for a month, you can pay it the following month with a fine amount of just Rs.1 for each Rs.100 assured. If the premium is not paid for 6 continuous months or 12 months, depending on when the policy was started, it may lapse.

Surrender Value

The scheme can be surrendered after 36 months from the date of commencement. The assured amount will be paid back along with a bonus.


Employees of the following organization are eligible for the Gram Santosh PLI policy

  • Defense services
  • Financial Institutions
  • Nationalised Banks
  • Paramilitary Forces
  • Central Government
  • State Government
  • Autonomous Bodies
  • Local Bodies
  • Government-aided Educational Institutions
  • Extra Departmental Agents from the Department of Posts

The minimum age criteria to enrol for the scheme is 19 years, and the maximum age is 45 years. The age limits for premium ceasing can be set at 35,40,45,50,55,58 and 60 years of age.

Documents Required

  • Details of PAN, Aadhaar and Driving Licence
  • Bank Account Details
  • Passport Photographs
  • Property Documents, if any
  • Water Tax and Electricity Tax copies