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What is the Postal Life Insurance (PLI) Scheme? – With Interesting Facts

Are you curious to read and learn about the Postal Life Insurance Scheme, also referred to as the Post Office PLI Scheme? This article will go in-depth on the topic of the Postal Life Insurance (PLI) Scheme: its history, benefits, Plans, and more. Did you know that the PLI Scheme was ordered by the Queen Empress of India herself?

Continue reading to know about more such interesting facts about the PLI Scheme of India.


  • History of PLI Scheme
  • Benefits of PLI Scheme
  • PLI plans and policies
  • Interesting Facts about the PLI Scheme

History of the PLI Scheme

The Postal Life Insurance Scheme is one of the earliest welfare schemes introduced in India. In fact, PLI Scheme was introduced around 63 years prior to India’s independence in 1947. The PLI Scheme was founded on February 1, 1884, and was solely introduced as a welfare scheme for employees of the post office.

The PLI Scheme has come a long way since 1884, with many modifications and changes. Today, the PLI Scheme provides six types of life insurance schemes or plans for a variety of different audiences, including officers of the central and state governments, nationalised banks, RBI employees, professionals, and beyond.

Benefits of the PLI Scheme

The most important benefits of the Postal Life Insurance Scheme are:


  • High coverage: The Postal Life Insurance Scheme provides a reasonably high life insurance coverage of Rs. 50 lacs. Life insurance coverage has slowly but steadily increased over the course of many years. This is extremely important as it is keeping pace with general inflation levels in the nation.
  • Highly accessible: The PLI Scheme is accessible throughout the nation via over 1.5 lakh post office branches across India. This makes it the easiest life insurance scheme to access in India.
  • Tax Benefits: Policyholders can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act on premiums paid.
  • Affordable Premiums: With the spirit of welfare intact, the PLI Scheme provides a good amount of life insurance coverage for reasonably affordable premium rates. This increases insurance penetration in India.
  • Guaranteed Returns: Returns are guaranteed by India Post. This ensures safety and stability for policyholders.

PLI Schemes and Policies

There are six plans offered under the PLI Scheme, and they are:


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

You can also read in detail about the PLI plans.

Interesting Facts About the PLI Scheme

Mentioned below are some of the lesser-known but interesting facts about the PLI Scheme:


  • The PLI Scheme was founded in 1884 by order of the Queen Empress of India.
  • The PLI Scheme was suggested by the then Director General of Post Offices, Mr. F.R. Hogg.
  • There are over 46 lakh policyholders under the PLI Scheme (as of 2017).
  • PLI policyholders can avail of a loan against their PLI policy.
  • Maximum life insurance coverage under the PLI scheme is Rs. 50 lacs (as of 2023).
  • The PLI Scheme is backed by the Central Government of India.
  • The annual budget of the post office is ₹ 20,820.02 crore (as of 2022) and employs over 4 lakh employees across the country.


Author Bio

This article is written by Team, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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