RPLI — life insurance policy for those living in rural India

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In this age of uncertainty, life insurance is necessary for a secure future for our near and dear ones. Most of us know about Life Insurance Corporation of India (LIC). But do you know that there is a government backed life insurance scheme only for rural residents of rural areas? Rural Postal Life Insurance (RPLI) is managed and operated by India Post. RPLI was introduced in 1995 according to the recommendation of the Malhotra Committee. The main advantage of RPLI is that they offer a higher return including bonus with the low premium.

RPLI is like any other like insurance. It offers the six types of policies:

1) Whole Life Assurance (Gram Suraksha): A whole life assurance policy with the added feature of an option to convert to Endowment Assurance Policy at the end of five years of taking policy.

Entry age: Minimum 19 years and maximum 55 years

Sum assured: Minimum Rs 10,000 and maximum Rs 10 lakh

Loan facility after 4 years.

2) Endowment Assurance (Gram Santosh): Under this scheme, the person is given an assurance to the extent of the sum assured and accrued bonus till he or she attains the pre-determined age of maturity. In case of death of policyholder, nominee or legal heir is paid full amount of sum assured with accrued bonus.

Entry age: Minimum 19 years and maximum 55 years

Sum assured: Minimum Rs 10,000 and maximum Rs 10 lakhs

Loan facility after 3 years.

3) Convertible Whole Life Assurance (Gram Suvidha): Gram Suvidha is a whole life assurance Policy with the added feature of an option to convert to endowment assurance policy at the end of five years of taking policy.

Entry age: Minimum and maximum entry age is 19 years and 50 years respectively.

Sum assured: Minimum Rs 10,000 and the maximum limit is Rs 10 lakh.

4) Anticipated Endowment Assurance (Gram Sumangal): Gram Sumangal is a money back policy with maximum sum assured of Rs 50 lacs. Survival benefits are paid to the policyholder periodically. Such payments will not be taken into consideration in the event of unexpected death of the insured.

Policy term: 15 years and 20 years

Minimum entry age is 19 years while the maximum age at entry 40 years for 20 years’ term policy and 45 years for 15 years’ term policy.

5) 10-Year RPLI (Gram Priya): Gram Priya is a short term money back scheme for 10 year tenure. Survival benefits are paid after 4 years, 7 years and 10 years.

Entry age: Minimum and maximum 20 and 45 years respectively.

Sum assured: Minimum Rs 10,000 and the maximum limit is Rs 10 lakhs.

6) Children Policy (Bal Jeevan Bima): The scheme provides life insurance cover to children of policy holders. Maximum two children of policyholders are eligible. Children between 5- 20 years of age are eligible

Eligibility

All ordinary permanent residents in rural areas can buy the policies.

Benefits of RPLI

RPLI offers an attractive bonus rate to its customers. It stands at Rs 65/thousand in Whole Life Assurance (Gram and Convertible Whole Life Assurance (Gram Suvidha). While the Endowment Assurance (Gram Santosh) and Children Policy (Bal Jeevan Bima) attract a bonus rate of Rs 50/thousand sum assured per year.

In Anticipated Endowment Assurance (Gram Sumangal) and 10 years rural PLI (Gram Priya) the bonus is Rs 58/thousand.

Premium

The premium of RPLI schemes is low compared to that in other companies offering life insurance. Also, facilities like assigning policies, taking loans against a policy, surrender and paid up value options are also available.

The policies can also be transferred to any circle within India at no additional charges.