Private Employees Can Also Buy Postal Life Insurance Policies: All You Need to Know

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Postal Life Insurance is one of the oldest life insurance companies which is still operating in India. Set up during the British rule, PLI is still a colossal name in the sector of insurance. Owing its popularity to the high returns it provides at affordable premium rates, Postal Life Insurance was only limited to the government and semi-government sector.  

Due to that restriction, many Indians missed out on its benefits and had to buy life covers from other insurers in the market. However, in 2017, the policies were opened to a wider audience. Today, employees of the private sector can also opt for a PLI life insurance policy.  

Why you should opt for Postal Life Insurance plans 

Postal Life Insurance is managed by the Department of Posts. It offers 6 traditional policies you can choose from, i.e Suraksha (Whole Life plan), Santosh (Endowment Assurance), Suvidha (Convertible whole life assurance), Sumangal (Anticipated endowment assurance), Yugal Suraksha (Joint life assurance), and Bal Jeevan Bima (Children policy). The maximum sum assured for these policies is Rs.50 lakh. It provides policyholders the benefit of availing a loan for immediate financial requirements. PLI offers flexible policies that allows you to convert any endowment assurance policy to another endowment assurance policy or to convert any whole life policy to endowment insurance plan.  

Eligibility for private employees 

Despite the relaxation on the occupational eligibility criteria, you must be working in the roles or organizations specified by PLI to buy a policy from them.  

Employees working in the following organizations and roles are eligible to buy insurance policies offered by Postal Life Insurance:  

  • Defense services 
  • Central Government 
  • State Government 
  • Para Military Forces 
  • Local bodies 
  • Reserve Bank of India 
  • Public sector undertakings 
  • Financial institutions 
  • Extra Departmental Agents in Department of Posts 
  • Autonomous bodies 
  • Government and educational institutions 
  • Nationalized banks 
  • Employees working on a contractual basis with the State or Central Government (With extendable contract) 
  • Individuals employed in scheduled commercial banks 
  • Individuals working in credit co-operative societies or other co-operative societies that are registered with the government under Co-operative Societies Act and funded by the Central/State Government or any institution notified by the Government of India.  
  • Teaching and non-teaching staff of private educational institutions. The institutes must be affiliated to a recognized boards like CBSE, open school, state boards, etc.  
  • Professionals like doctors, engineers. Management consultants, chartered accountants, architects, bankers, and lawyers.  
  • Individuals who are employed in companies listed in the National Stock Exchange and Bombay Stock Exchange in the sectors of energy/power, telecom, infrastructure, etc. 

Important points to remember 

  • The minimum qualifying age for most PLI policies is 19 years and the maximum age is 55 years.  
  • Bankers working in foreign banks, nationalized banks and its associates, regional banks, private sector banks, etc., are eligible.  
  • Only employees of NSE and BSE listed companies which provide provident fund, gratuity or maintain the leave records of the employees are eligible.  
  • Lawyers applying for PLI policies must be registered with Bar Council of India or any of the states. 
  • Engineers pursuing their post graduate degree after passing GATE are also eligible. 
  • Doctors who are pursuing their post-graduate degree through government or private hospitals and resident doctors employed on a permanent or contractual basis in government or private hospitals are eligible.  

How can you apply for a Postal Life Insurance policy 

You can buy a policy from any of the authorised post office branches in your vicinity. Apart from visiting the branch personally, you can also apply for an insurance policy online on India Post’s official website.  

The online portal also allows you to access information related to the policies, premium payment options, and the facility of generating SMS alerts.