Postal Life Insurance (PLI) was introduced in the year 1884 to encourage employees of the Central and the State Governments to get life insurance. As part of the initiative, 6 different kinds of insurance policies have been designed ranging from endowment-based plans to child life covers. Notably, policyholders can avail of loans against their PLI policies. The repayment of the principal amount involves an additional interest charged at 10% per annum.
Read more#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
Postal Life Insurance policies offer policyholders the option to avail of loans against a percentage of the sum assured to finance urgent liquidity needs. In order for the loan to be approved, the life insurance policy has to be in force for a minimum of 3-4 years. Note that PLI policies can only be bought by Government, semi Government employees, and professionals.
The interest rate charged for loans taken against PLI schemes is 10% per annum. Some of the important factors to note with regards to the payment of interest are:
The policyholder has to pay the interest on a half-yearly basis at the prescribed rate.
The interest on loans against PLI policies is calculated on a on six monthly basis. This payment has to be done by the due date.
If it is not paid by the due date, the interest amount is added to the outstanding loan. The prescribed rate of interest shall ply on the total amount from then onwards.
If the insurant defaults thrice on the half-yearly interest payment, the insurer shall surrender the policy.
Consequently, the applicable surrender value shall be used to pay off the outstanding loan and the unpaid interest.
Once the policy is surrendered by the insurer after defaulting on payments, the benefits under the base postal life insurance policy shall stand void.
Keep in mind the following terms and conditions before applying for a loan against your PLI schemes.
To avail of loans against your PLI endowment assurance or Yugal Suraksha policies, a minimum of 3 policy years has to be completed.
Further, loans against PLI whole life policies and convertible whole life policies can only be availed on the completion of 4 policy years.
The maximum amount of loan admissible under PLI schemes is 90% of the surrender value. This condition is applicable only if the loan amount is not less than Rs. 1000.
You can apply for more than one loan on fulfilling prescribed criteria and is further subject to the discretion of the insurer.
PLI Scheme | Type Of Insurance | Loan Facility |
PLI Suraksha | Whole Life Assurance | Available after 4 policy years |
PLI Suvidha | Convertible Whole Life Assurance | Available after 4 policy years |
PLI Santosh | Endowment Assurance | Available after 3 policy years |
PLI Yugal Suraksha | Joint Life Assurance | Available after 3 policy years |
PLI Sumangal | Anticipated Endowment Assurance | Not Applicable |
PLI Bal Jeevan Bima | Children Policy | Not Applicable |
30 Mar 2023
Aditya Birla Sun Life Insurance Company Ltd. is one of India's30 Mar 2023
Kotak Mahindra Life Insurance Company Limited, one of the16 Mar 2023
A gig economy is a free marketplace in which temporary positions16 Mar 2023
Due to the increase in housing costs, it is now nearly difficult06 Mar 2023
A SBI Life Insurance 40000 per year Plan for 10 years is a lifeInsurance
Policybazaar Insurance Brokers Private Limited CIN: U74999HR2014PTC053454 Registered Office - Plot No.119, Sector - 44, Gurgaon - 122001, Haryana Tel no. : 0124-4218302 Email ID: enquiry@policybazaar.com
Policybazaar is registered as a Direct Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2024, License category- Direct Broker (Life & General)
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2023 policybazaar.com. All Rights Reserved.
*Tax benefit is subject to change in tax laws.