Rural Postal Life Insurance

Rural Postal Life Insurance (RPLI) was implemented after the recommendations of the Malhotra Committee, which is the Official Committee for Reforms in the Insurance Sector. The insurance scheme came into being from 24.03.1995 after the Government decided to expand the Postal Life Insurance to cover the rural areas by using the post office infrastructure. In this article, we look at the various aspects of the Rural Postal Life Insurance scheme in detail.

Objectives of Rural Postal Life Insurance

The objectives of the Rural Postal Life Insurance scheme are:

To provide insurance to the rural community.
To help the lower class people and women workers of the rural community.
To spread awareness about this scheme among the rural population.

Insurance Plans

Rural Postal Life Insurance provides the following insurance plans:

Whole Life Assurance
Convertible Whole Life Assurance
Endowment Assurance
Anticipated Endowment Assurance
10 Year RPLI
Children Policy

Whole Life Insurance

In case of the death of the policyholder, the policy pays the nominee a sum which is equivalent to the guaranteed amount in addition to the bonus. The age criteria for this policy is from 19 years to 55 years. The allocated funds range between Rs.10,000 to Rs.5 lakhs. There is also a loan option for this which can be claimed after 4 years.

Convertible Whole Life Assurance

In case of the death of the policyholder, the policy pays the nominee a sum that is equivalent to the guaranteed amount in addition to the bonus. The age criteria for this policy is from 19 years to 55 years. The allocated funds range between Rs.10,000 to Rs.5 lakhs. After 4 years, the policyholder can claim for a loan. The surrender policy can be availed after 3 years, and there is a bonus amount if it is nullified.

Endowment Assurance

In case of death of the policyholder, the policy provides a sum which is inclusive of the bonuses provided to the nominee, assignee or heir until he or she attains the age of maturity. The age criteria for this policy is from 19 years to 55 years. The allocated funds range between Rs.10,000 to Rs.5 lakhs. After 4 years, the policyholder can claim for a loan. The surrender policy can be availed after 3 years, and there is a bonus amount if it is nullified before 5 years.

Anticipated Endowment Assurance

This policy provides benefits to the policyholder periodically. The nominee will receive the actual amount and the bonus. This happens if the policyholder dies. The age criteria for this policy is from 19 years to 55 years. The allocated funds range between Rs.10,000 to Rs.5 lakhs. The surrender policy can be availed after 3 years, and there is a bonus amount if it is nullified before 5 years. Gram Priya The policy provides benefits to the policyholder or his or her nominee after completing the policy term. The total sum amount will be the guaranteed sum with an addition of the bonus. The age criteria for this policy is from 19 years to 45 years. The allocated funds range between Rs.10,000 to Rs.5 lakhs. The surrender policy can be availed after 3 years, and there is a bonus amount if it is nullified before 5 years.

Children Policy(10-year RPLI)

The policy provides insurance for two children in the family. The parent receives the policy if they have a Postal Life Insurance. The age criteria of the children should be from 5 years to 20 years and the age of the parent should be below 45 years. The total sum amount is up to Rs. 3 lakh, including the maturity benefits and bonus. There is no loan that is applicable to this policy.

Rural Postal Life Insurance Benefits

The following are the benefits of the RPLI policyholder.

The policyholder can change the nominee whenever required.
If the policy has completed 3 years for Endowment Assurance and 4 years for Whole Life Assurance, the insurant can apply for a loan by requesting his/her policy Heads who acts on behalf of the President of India.
Any financial institution can avail loan through this policy.
Policy lapses after 6 unpaid premia if it is continued in force for less than 3 years. The policy lapses after 12 unpaid premia if it is continued in force for more than 3 years. If there are any issues related to this, it can be cleared and renewed.
If the original Policy Bond is lost, burnt or torn, a duplicate Policy Bond is issued.
The policyholder can change the policy of the insurance from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance according to the rules.

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Frequently Asked Questions

Common questions about Rural Postal Life Insurance Plans & Benefits in India.

Rural Postal Life Insurance (RPLI) is an insurance scheme implemented by the Government of India to provide life insurance coverage to the rural population. It was launched in 1995 after the recommendations of the Malhotra Committee, with the objective of utilizing the vast network of post offices to offer insurance services in rural areas.

The Rural Postal Life Insurance scheme is open to individuals aged between 19 and 55 years, residing in rural areas. It is specifically designed to cater to the insurance needs of the lower-income groups and women workers in rural communities.

RPLI offers various insurance plans, including Whole Life Assurance, Convertible Whole Life Assurance, Endowment Assurance, Anticipated Endowment Assurance, Gram Priya, and a Children Policy (10-year RPLI). These plans provide different types of coverage and benefits to suit the diverse needs of rural customers.

The sum assured or the insured amount for RPLI policies ranges from Rs. 10,000 to Rs. 5 lakhs, depending on the type of plan chosen and the individual's requirements.

Yes, policyholders of Whole Life Assurance, Convertible Whole Life Assurance, Endowment Assurance, and Anticipated Endowment Assurance plans can apply for a loan against their policy after a certain period, typically four years.

In the event of the policyholder's death during the policy term, the nominee or heir will receive the guaranteed sum assured along with any applicable bonuses, as per the terms and conditions of the chosen RPLI plan.

Yes, the policyholder has the flexibility to change the nominee in their RPLI policy whenever required, as per the prescribed procedure.

If the original policy bond is lost, burnt, or torn, the policyholder can request a duplicate policy bond to be issued, following the specified process.

Yes, policyholders have the option to change their RPLI plan from Whole Life Assurance to Endowment Assurance, or from Endowment Assurance to another Endowment Assurance plan, subject to the applicable rules and regulations.

The RPLI Children Policy provides insurance coverage for up to two children in a family. The parent, who must have a Postal Life Insurance policy, receives the policy benefits. The age criteria for children is 5 to 20 years, and the parent's age should be below 45 years. The total sum assured, including maturity benefits and bonuses, can be up to Rs. 3 lakhs.