Difference between RPLI and PLI (8 Key Differences)

Rural Postal Life Insurance

Postal Life Insurance

What is RPLI?

India Post’s Rural Postal Life Insurance was introduced in 1995 with the main objective of providing life insurance coverage at an affordable premium to individuals belonging to the rural sector of India.

What is PLI?

Postal Life Insurance by India Post was established on February 1, 1884.

It was established with the intention of providing life insurance coverage to postal employees, female employees of P&T departments, etc. Postal Life Insurance has now expanded its services and offers coverage to the armed forces, government employees, and so on.

Plans under Rural Postal Life Insurance

• Whole Life Assurance Policy (Gram Suraksha)
• Convertible Whole Life Assurance Policy (Gram Suvidha)
• 10 years Rural PLI Policy (Gram Priya)
• Endowment Assurance Policy (Gram Santosh)
• Anticipated Endowment Assurance Policy (Gram Sumangal)
• Children Policy (Gram Bal Jeevan Bima)

Plans under Postal Life Insurance

• Whole Life Assurance Policy (Suraksha)
• Convertible Whole Life Assurance Policy (Suvidha)
• Joint Life Assurance Policy (Yugal Suraksha)
• Endowment Assurance Policy (Santosh)
• Anticipated Endowment Assurance Policy (Sumangal)
• Children Policy (Bal Jeevan Bima)

Benefits of Rural Postal Life Insurance Plans

Below are a few general benefits under RPLI plans:

• Death Benefit: In the event of the unfortunate demise of the policyholder, the nominee of the policy will receive the sum assured along with any accrued bonus.
• Unnatural Death: RPLI plans also offer coverage for unnatural death in cases of suicide, etc., but only if the policy is continued for more than 2 years.
• Survival Benefit: A certain percentage of the total sum assured will be payable to the policyholder under the survival benefit, along with any accrued bonus, after 4 years, 7 years, and 10 years of policy completion.
• Loan Facility: The policyholder can also avail of a loan facility upon the policy’s completion after 3 or 4 years. The loan facility is not admissible under the Bal Jeevan Bima Policy.
• Interest Waiver: All interest on arrears of premium up to one year will be waived off, in the case of natural calamities such as floods, droughts, earthquakes, cyclones, etc.
• In Case of Parents Death: In case of the death of the parent of the insured child under the (Gram) Bal Jeevan Bima Policy, all premiums will be waived off. The insured child will receive total SA along with any accrued bonus.
• Tax Rebate: RPLI plans are eligible for an income tax rebate under Section 80C of the Income Tax Act. The insured can also avail of a rebate under Section 88 of the Income Tax Act.

Benefits of Postal Life Insurance Plans

Below are a few general benefits under PLI plans:

• Death Benefit: In the event of the death of the insured individual, the sum assured under the plan will be paid to the beneficiaries of the policy.
• Accidental Death Benefit: In case of the unfortunate accidental death of the policyholder, the sum assured along with the accrued bonus will be paid to the beneficiary of the policy.
• Total Permanent Disablement Cover: PLI plans also financially compensate in the event of any total permanent disability suffered by the policyholder due to an accident.
• Unnatural Death: Like RPLI, PLI plans also offer coverage for unnatural deaths like suicide, murder, etc. only if the policy has been active for more than 2 years.
• Loan Facility: The policyholder can also avail of a loan facility upon the policy’s completion after 3 or 4 years. The loan facility is not admissible under the Bal Jeevan Bima Policy.
• In Case of Parent’s Death: Under the Children Policy (Bal Jeevan Bima), all premiums will be waived in case of the unfortunate death of the parent.
• Tax benefit: PLI plans are eligible for income tax exemption under Section 80C of the Income Tax Act.

Sum Assured

Below are the sum assured options under the RPLI plans:

Minimum sum assured:  ₹  10,000

Maximum sum assured: ₹ 10,00,000

Sum Assured

Below are the sum assured under PLI plans:

Minimum sum assured: ₹ 20,000

Maximum sum assured: ₹ 50,00,000

Eligibility

Following individuals are eligible to opt for RPLI plans:

Rural Postal Life Insurance plans can be purchased by all individuals belonging to rural sector of India.

Eligibility

All government employees, the Defence and Para-Military Services, employees of PSU banks, educational institutions, Local Bodies, and professionals like doctor’s, MBAs, lawyers, etc. Employees of companies listed with the Bombay Stock Exchange( BSE) and the National Stock Exchange (NSE)

Age Criteria

Following are the general age criteria for purchasing the plan: The same may vary according to the type of policy.

Minimum age: 5 years

Maximum age: 55 years

Age Criteria

Following are the general age criteria for purchasing the plan: The same may vary according to the type of policy.

Minimum age: 5 years

Maximum age: 55 years

Premium

Premiums under RPLI plans are low as compared to PLI plans, as these plans are specifically made for weaker sections of society.

Premium

Premiums under the PLI plans are slightly on the higher side because of their extensive coverage.

Renewability

RPLI policies can be renewed yearly.

Renewability

PLI policies can be renewed on a year to year basis.