About The Two Most Important Insurance Companies: Postal Life Insurance and Life Insurance Corporation

life insurance

Postal Life Insurance and Life Insurance Corporation

Among the various insurance companies in India, the most popular ones are government owned. Postal Life Insurance, Life Insurance Corporation, New India Assurance Limited and National Insurance Co. Ltd. are among those. Life Insurance Corporation (LIC) is the largest insurance provider for the masses, whereas Postal Life Insurance (PLI) is the oldest insurance company in India.

PLI began in 1884 for the benefit of the postal employees. However, now the clientele encompasses all the government employees, employees of Defence services, the staff of public sector undertakings and so on. LIC was nationalized in 1956 and has created a monopoly in the sector by selling insurance to the multitudes.

The Overview of Products

Postal Life Insurance and Life Insurance Corporation offer life insurance of various kinds and portfolios to the customers. LIC has expanded to providing pension plans, unit-linked insurance plans, health insurance and investment management as well.

Here is a table containing one example each of the PLI and LIC policies

 

Plan name

 

Features Entry Age eligibility
Anticipated endowment assurance (Sumangal) policy by PLI Available under 15 or 20 years money back plan with regular payments Minimum – 19 years

Maximum – 45 years

LIC’s Limited Premium Endowment Plan

 

Lump sum paid at maturity or to nominee on demise of policy-holder Minimum – 18 years

Maximum – varies according to policy term

 

You can view the info about LIC and Postal Life Insurance plans in Hindi and other regional languages as well.

Why Buy Insurance From PLI And LIC?

The LIC provides many plans to suit the needs of customers. You can contact an agent easily to buy the best life insurance policy in LIC from him/her. You can apply for any of the different kinds of policies and buy them for your children too no matter where you work.

There is a lot to be gained from Postal Life Insurance for government employees. The policies are specially designed for the government workers and can be applied for in groups too. A loan can be taken out in the security of the policies and there is a provision for direct premium payment by deduction in salary.

The Companies Are Rich in Features

  • You have options for both LIC and Postal Life Insurance online payment
  • You have the guarantee of the government with Postal Life Insurance, Life Insurance Corporation and other public insurance companies
  • Tax benefits can be availed under the section 80C and PLI lets you change your nominee at anytime
  • The Rural Postal Life Insurance offers insurance coverage for the lowest premium amount
  • Anyone can use rural Postal Life Insurance premium calculator and a tool is available on the LIC website as well

Eligibility Criteria

The age criteria are different for the different policies of the insurance companies, PLI and LIC.

The policies of LIC are available to all the citizens of India. The PLI plans, on the other hand, can be accessed by a subset of the total Indian citizens. To buy a PLI policy you have to be an employee of any one of the following

  • Central, state or local government
  • Defence sector
  • RBI or other nationalised financial institutions
  • Government aided educational institutions
  • Public sector undertakings or autonomous bodies
  • Government recognised bodies like Medical Council of India, AICTE, etc.

A complete list is provided on the PLI official website. The postal life insurance bonus is high for any product including army Postal Life Insurance.

Inclusions and Exclusions

Every product of Postal Life Insurance and Life Insurance Corporation is unlike the other. Therefore, you will have to read about every policy in detail to know the covers and exclusions.

The easiest way to decide which policy is the best for you is by contacting an agent.

Documents Required For Applying

Like every other government work, you will need to go through a whole process before you get insured. The documents you will need to submit are identity proof, age proof, income proof, address proof and PAN card.

The Postal Life Insurance website can be used to login and view Postal Life Insurance status with the help of my PLI policy no.

Claiming A Policy

The Postal Life Insurance operation is efficient; hence, the claims process is quick and hassle-free. LIC is also known for its high claim settlement ratio.

You will be assisted by your life insurance agent and the company in every way. Usually, the claim starts with intimation to the company, then proceeds on to document submission and finally ends with the payment.

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About Sashi 48 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.

2 Comments

    • There are many insurance policy offered by LIC India in market. You can study throughout their plans and can choose the best one. Good luck.

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