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Rural Postal Life Insurance RPLI Plans and Scheme Details



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postal life insurance

In the rural areas due to dearth of banks and financial institutions, traditionally the role of banking and other financial services has been being fulfilled by post offices which have an extensive coverage in rural areas.

Earlier the Postal Life Insurance schemes being offered by the Indian Postal Service did not include the entire rural population and many rural people remained uncovered by these postal life insurance schemes.

In order to address this lacuna in rural life insurance and especially to extend life insurance services to the rural poor including women and self employed people and overall to increase its coverage, IPS launched the Rural Postal Life Insurance (RPLI) plan in 1995 on March 25.

Plans offered by the RPLI

In order to cater to various types of rural life insurance issues and needs the rural postal life insurance scheme offers six plans under its scheme, these are:

  1. Grama Suraksha -this is a whole life insurance scheme-WLI.
  2. Grama Suvidha-this is a convertible whole life assurance scheme-CWLA.
  3. Grama Santosh-this is an endowment based plan-EP.
  4. Grama Sumangal-this is an anticipated endowment assurance-AEA.
  5. Gram Priya-this is a ten year rural postal life insurance.
  6. Bal Jeevan Bima-is a child policy under this rural life insurance scheme-CP

Salient Features of Rural Postal Life Insurance plan


Any Indian residing in rural area can take up a rural life insurance plan being offered by the post offices. Postal life insurance plans cannot be taken up by foreigners and non resident Indians although if a policy holder shifts his/her place of residence outside the country then there are provisions for continuance of policy in such cases.

The age limit is 19-55 years in general for all postal life insurance schemes but this can vary. Such as in WLI and EA plans under RPLI scheme the maximum age limit of entry is 55 but for the other four plans under RPLI the maximum age limit is 45 years. For the non-medical policies this maximum age is 35 years. In case the proposer lacks a standard age proof then for non standard age proof the maximum age limit is 45 years for all the general types of RPLI schemes.

Sum Assured:

Under the RPLI scheme the minimum sum assured is Rs 10,000 whereas the maximum sum assured is 3,00,000. In case of non medical policies the total sum assured cannot exceed Rs 25,000.

Policy term:

20-15 yrs, 10 yrs for Gram Priya.

Medical Examination:

Medical examination is compulsory for taking up postal life insurance plans.

Policy lapse

A policy is considered as lapsed if it has been in existence for more than 3 years and premiums have remained unpaid for more than 12 months.

Policy Surrender

RPLI scheme also has provisions for surrender of policy. Policy surrender is not advisable and should be resorted to only under extreme circumstances.

Provisions for surrender under the RPLI include:

  • Endowment Assurance policy can be surrendered after 36 months.
  • WLA policy can be surrendered after 48 months.
  • Children policy can be surrendered after 60 months.
  • No surrender provisions for AEA policy.
  • Policy being surrendered should be unencumbered and unassigned
  • Bonus can only be claimed for policies which have completed 5 years or more.
  • The surrender value is dependent on the surrender factor and type and term of the policy.
  • The policy holder should expect the value of surrender to be lesser than the value of premiums paid.


If the policy holder commits suicide within two years of taking up rural life insurance policy under PLI scheme then the policy lapses and no benefits can be claimed except the bonafide benefits.

Benefits of RPLI

  • Postal Department offers rural insurance policies with lowest premiums and highest bonuses. As per most recent data of Indian Postal department bonus rate for AEA is 47-60%, for EA 50-60%, for WLA-60-65% and for GY-47-60%
  • Provisions for taking loan by pledging plan against financial institutions.
  • Provisions for policy revival
  • Comfortable grace period for premium payment.
  • Plan convertibility options can be availed
  • Duplicate policy bond can be issued in case original document is lost, stolen or destroyed.
  • Nominations can be altered.
  • Policy can be assigned.
  • Tax exemptions applicable as provided under section 80 C of the Income Tax Act.

Documents Required

Documents required for rural insurance policies is almost same as that required by other insurance policies and generally include date of birth proof, address proof (ration card, gas bill, electricity bill), identity proof (PAN card, Aadhar card, voter id card) and income proof (bank statement and other documents).

Claim Process

For claiming the sum assured and benefits the claim form needs to be taken from the post offices and duly filled and submitted along with the documents required, the claim application should be addressed to the concerned authority of the postal department.

This article was written by Archana Singh for on .

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