Post office Gram Priya Scheme is a short-term money-back plan for the rural population only that provides insurance cover to the weaker sections of the rural area.
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Rural Post Life Insurance, RPLI online schemes were introduced in March 1995, especially for the benefit of rural people. In 1993, this plan was started by the recommendation of the Malhotra committee which observed that only 22% of the insurable population in India has been insured and life insurance funds are accounted for only 10% of the gross household savings.
The government of India accepted the recommendations of the committee and allowed PLI to enhance its coverage to the rural areas to implement life insurance business. Post office Gram Priya Yojana (10-year Rural PLI Scheme) was introduced under the RPLI. The main objective of this plan is to provide life insurance coverage to the rural public and to benefit the weaker parts of rural areas. This scheme can also help in spreading insurance awareness among the rural population. Read on to know further about the 10-year RPLI Gram Priya scheme in detail:
10-year RPLI is a money-back short tenure insurance scheme in which the policyholder will receive the benefits at periodic time intervals. This scheme is suitable for those individuals who need returns and benefits at periodic time periods. In case of an unforeseen demise during the policy tenure, the entire sum assured (SA) amount and accrued bonus till the death date will be paid to the legal heir or nominees.
Post Office Gram Priya Yojana works by following the below points:
Select the sum assured and buy the scheme at the post office
This scheme is only for 10 years.
The monthly amount of premium will be decided on the basis of your age and sum assured
The policyholder is required to pay the premium every month for 10 years. The policyholder can use RPLI Gram Priya Premium Calculator to calculate the premium amount required to pay for the next 10 years.
The bonus will be accrued every year as per the rate of bonus during the policy tenure of 10 years
Assured will get the benefits periodically i.e., at the end of 4, 7, and 10 years of policy
In case of the unfortunate death of the policyholder during the plan period of 10 years, the full SA and any other bonus accumulated (till the date of death) will be paid to the nominees or legal heirs.
|Minimum Entry Age||20 years|
|Maximum Entry Age||45 years|
|Who are eligible?||Salaried professionals|
|Policy Term||10 years|
|Commencement of Scheme||The insurance cover starts from the acceptance date of the plan|
|Minimum sum assured||Rs. 10,000|
|Maximum Sum assured||Rs, 10 lakh|
The below table illustrates the premium amounts required to pay on annual, half-yearly, quarterly, and monthly modes at different ages under Gram Priya Scheme Post office:
|Entry Age (Years)||Annual (in Rs.)||Half-yearly (Rs.)||Quarterly (in Rs.)||Monthly (in Rs.)|
The policyholder is provided life cover to the extent of sum assured amount for 10 years
Survival benefit will be paid under 10-year RPLI if the policyholder survives the policy term. The amount payable as survival benefit are given below:
|After 4 years||20%|
|After 7 years||20%|
|After 10 years||60% along with accumulated bonus|
For Rs. 20,000 and above policy, a rebate of Rs. 1 shall be allowed.
In case of natural calamities like drought, flood, cyclone, earthquake, etc. no rate of interest is charged up to 1 year as arrears of premium.
The surrender amount is not payable under this scheme
The last bonus declared for the 10-year rural scheme is Rs. 45/- per Rs. 1000 SA per year.
Note: Bonus rate is not fixed. It changes as announced by the Indian Government
Medical Test: In order to buy this scheme, the policyholder is required to undergo a medical examination or not depending on the SA and age.
If your age is 35 years or less and the SA amount is Rs. 25000 or less, then you are not required to undergo a medical test
If your age is more than 35 years and the SA amount is more than Rs. 25,000, then the medical test is important.