Postal Life Insurance (PLI) is a widely recognized life insurance scheme operated by the Indian Postal Department. It was established to provide affordable life insurance coverage to employees of postal services and individuals in rural areas. PLI offers a range of insurance policies with attractive features and benefits, making it a popular choice among policyholders.
Calculating the premium is a crucial step in purchasing an insurance policy, as it determines the cost of coverage. By calculating the premium, individuals can assess their affordability and choose a policy that aligns with their financial goals. It allows policyholders to make informed decisions and select the most suitable insurance plan based on their budget and coverage needs.
In this article, we will guide you on using the Postal Life Insurance premium calculator available online in India. It aims to provide step-by-step instructions on how to utilize the online calculator to calculate the premium for PLI policies. By using the online calculator, individuals can obtain instant and accurate premium estimates, facilitating the decision-making process when selecting a PLI policy. Before diving into the topic let’s know what Postal Life Insurance is.
Understanding Postal Life Insurance
Postal Life Insurance (PLI) was introduced in India in 1884 and is one of the oldest life insurance schemes in the country. PLI is operated by the Department of Posts under the Ministry of Communications, Government of India. It was initially designed to provide insurance coverage to postal employees but was later extended to the general public. Similar to PLI life insurance, there is a Rural Postal Life Insurance (RPLI) plan to provide financial coverage to people living outside cities and towns.
There are six types of Postal life insurance schemes available under the Postal Life Insurance Company:
- Whole Life Insurance( Suraksha)
- Joint Life Insurance( Yugal Suraksha)
- Endowment Life Insurance( Santhosh)
- Convertible Whole Life Insurance( Suvidha)
- Anticipated Endowment Assurance (Sumangal)
- Children Policy (Bal Jeevan Bima)
Features and Benefits of PLI Policies
- Affordable Premiums: PLI policies offer competitive premium rates, making them accessible to a wide range of individuals.
- Guaranteed Returns: PLI policies provide guaranteed returns in the form of sum assured and bonuses, ensuring a secure financial future.
- Tax Benefits: Policyholders can avail of tax benefits on premiums paid under Section 80C of the Income Tax Act, 1961.
- Optional Additional Riders: PLI offers additional riders such as accidental death benefits, disability benefits, and term assurance riders, allowing policyholders to enhance their coverage as per their needs.
- Bonus Accrual: PLI policies provide bonuses, including simple reversionary bonuses and final (additional) bonuses, which increase the policy's maturity value over time.
- Policy Loan Facility: Policyholders can avail of loans against their PLI policies, providing a convenient source of funds during financial emergencies.
- Death Benefit: In the event of the policyholder's demise, PLI policies pay the sum assured along with accrued bonuses to the nominee, ensuring financial protection for the family.
- Maturity Benefit: Upon the completion of the policy term, PLI policies provide the maturity benefit, which includes the sum assured and accumulated bonuses.
- Hassle-free Claim Settlement: PLI has a streamlined and efficient claim settlement process, ensuring that beneficiaries receive the rightful insurance claim without unnecessary delays.
Importance of Premium Calculation
Premium calculation is an essential aspect of long-term financial planning. By assessing the premium amount, individuals can integrate the insurance costs into their overall financial strategy, ensuring adequate protection and financial security for themselves and their loved ones.
By calculating the premium, individuals can evaluate whether the insurance coverage fits within their budget. It helps determine the financial feasibility of the policy and ensures that premium payments can be comfortably managed.
Premium calculation empowers individuals to make informed decisions when selecting an insurance policy. It enables them to compare different policy options, understand the coverage benefits, and choose a policy that aligns with their financial goals and affordability.
Online Postal Life Insurance Premium Calculator
The online postal life insurance premium calculator tool is used to calculate the premium of the postal life insurance policy. You can calculate the amount of premium payable by entering a few details such as mobile number, name, date of birth, email address, occupation, type of policy, sum assured, gender, state, etc.
The premium paid by the customer is depending on many factors. The premium calculator tool will reflect the estimated premium amount that the policyholder will have to pay for the cover he/she requires based on these factors. Once you provide all the relevant details and then click on the submit tab, you will receive details regarding your monthly premium.
Advantages of Using an Online Premium Calculator
- Convenience and Accessibility: Online premium calculators can be accessed anytime and anywhere, providing convenience to users.
- Instant and Accurate Results: By entering the required information, users can obtain immediate premium calculations without the need for manual calculations or waiting for assistance.
- Comparison of Different Policy Options: Online calculators allow users to compare premiums for different policy types, coverage amounts, and policy terms, enabling them to make informed decisions.
How to Use Postal Life Insurance Premium Calculator
Using an online premium calculator simplifies the process of determining the premium for Postal Life Insurance policies. It saves time, provides accurate results, and enables users to explore various policy options to make informed decisions.
Step-by-step Guide to Using the PLI Premium Calculator
- Visit the official website of Postal Life Insurance.
- Click on the “Quote” button under the “Purchase a Policy” section.
- Enter the relevant information, such as mobile number, email, name, age, type of policy, occupation, gender, etc.
- Once the information is entered click on the “Get a Quote” button, the online premium calculator will process the data and provide the estimated premium amount.
- Then you can review the premium calculation results and explore different policy options that meet their requirements and budget.
Example PLI Premium Calculation
Let’s take a sample example of how a PLI life insurance premium calculator works and how it will illustrate premium calculations.
| Product Type: |
Convertible Whole Life Assurance |
| Policyholder Age: |
26 |
| Maturity Age: |
80 |
| Sum Assured: |
10,00,000 |
| Premium Ceasing Age |
60 |
| Policy Tenure: |
34 years |
Let us see the result premiums of this calculation
| Monthly Premium: |
Rs. 1,829/- |
| Quarterly Premium: |
Rs. 5,486/- |
| Half-Yearly Premium: |
Rs. 10,973/- |
| Yearly Premium: |
Rs. 21,945/- |
Note: The actual premium amount may vary based on the specific PLI policy rates and any factors that may affect the premium calculation. For accurate and detailed premium calculations, it is recommended to use the official Postal Life Insurance online premium calculator.
Factors Affecting the Premium Calculation
- Age of the Insured: The age of the insured plays a significant role in determining the premium amount. Generally, younger individuals enjoy lower premiums as they are considered less risky to insure.
- Sum Assured: The sum assured, which is the coverage amount, directly affects the premium. A higher sum assured typically leads to a higher premium.
- Policy Term: The duration of the policy term impacts the premium calculation. Longer policy terms may result in higher premiums due to an increased risk for the insurer.
- Premium Payment Frequency: The frequency of premium payments, such as monthly, quarterly, or annually, affects the premium calculation. Different payment frequencies may have varying premium rates.
- Additional Riders (If Applicable): Adding optional riders to enhance the policy coverage, such as critical illness or accidental death benefit, can impact the premium amount.
Tips for Effective Premium Calculation
- Keep Personal Information Up To Date: Ensure that the information provided for premium calculation, such as age, occupation, and health details, is accurate and reflects the current situation.
- Regularly Review And Update Policy Details: As personal circumstances change over time, such as marriage, the birth of a child, or career advancements, it is important to review and update the policy details accordingly to ensure appropriate coverage and accurate premium calculations.
- Utilize Customer Support Services: Take advantage of customer support channels, such as helpline numbers or online chat support, to seek assistance and get a better understanding of the premium calculation process.
- Assess Long-Term Financial Goals: Evaluate your future financial aspirations, such as retirement planning, education expenses, or purchasing a home. Consider how insurance coverage and premium payments fit into these goals.
- Explore Different PLI Policies: Consider the various types of policies offered by Postal Life Insurance and their respective features.
- Compare Premium Rates: Use the online premium calculator or consult with PLI representatives to compare premium rates for different policies with varying coverage amounts and terms.
- Assess the Benefits: Evaluate the benefits provided by each policy option, such as guaranteed returns, bonus accrual, and additional riders, to determine which policy best aligns with your needs and priorities.
By following these tips, individuals can ensure effective premium calculation that aligns with their current situation, allows for future financial planning, and provides an accurate estimate of the insurance premium. This helps in choosing the most suitable Postal Life Insurance policy.
Conclusion
Calculating the premium is crucial in insurance planning as it determines the cost of coverage and helps individuals make informed decisions. The Postal Life Insurance premium calculator online in India provides a valuable tool for individuals to calculate their insurance premiums accurately and conveniently. By using this tool, individuals can make informed decisions, ensure affordability, and choose the PLI policy that best suits their needs and financial goals.