A major change has been made to Rural Postal Life Insurance (RPLI), and it could benefit people living in cities as well.
Earlier, RPLI was mainly available to people living in rural areas.
But the Postal Department has now removed the rural residency requirement.
This means people living in urban areas can also apply for RPLI, provided they meet the other eligibility conditions.
The key requirement is that the applicant should have an active, KYC-compliant savings account with either a Post Office Savings Bank or a scheduled bank in India.
However, having a bank account alone does not guarantee a policy. Existing rules related to age, sum assured and underwriting still apply.
Who Can Buy RPLI Now?
The biggest change is that you no longer need to live in a rural area to apply for RPLI.
Applicants must have a current and KYC-compliant savings account. The account should not be closed, frozen, blocked or inactive.
RPLI is generally available to people aged 19 to 55 years.
For applicants who do not have standard age-proof documents, the eligible age range is generally 19 to 45 years.
Both men and women can apply under the scheme.
Six Types of RPLI Policies Are Available
RPLI was launched on March 24, 1995, mainly to provide life insurance protection to people in rural areas. The scheme also focused on women and economically weaker sections.
There are currently six types of RPLI policies:
Gram Suraksha: Whole life insurance
Gram Santosh: Endowment assurance
Gram Suvidha: Convertible whole life insurance
Gram Sumangal: Anticipated endowment assurance
Gram Priya: 10-year term insurance
Bal Jeevan Bima: Child life insurance
Under Bal Jeevan Bima, a maximum of two policies can be taken for children, subject to the applicable rules.
What Documents Are Required?
Applicants may need documents such as Aadhaar, PAN, Voter ID, Passport or Driving Licence.
Proof of age and address may also be required, along with a passport-size photograph.
After the policy is issued, the customer receives a 13-digit policy number and policy bond.
Many policy-related services can also be accessed online by creating a Customer ID on the India Post website.
How Can You Pay the RPLI Premium?
RPLI premiums are generally paid in advance at the beginning of each month.
However, customers get a grace period until the last working day of the month.
Premiums can be paid in different ways, including:
Monthly
Quarterly
Half-yearly
Annually
The premium can also be deposited at any post office.
How Much Money Can You Get From RPLI?
The amount received from an RPLI policy depends on factors such as the sum assured, policy term and applicable bonuses.
The sum assured can start from ₹10,000 and go up to ₹10 lakh, depending on the policy and eligibility.
When the policy matures, the policyholder may receive the sum assured along with accumulated bonuses, subject to the terms of the selected plan.
Can You Take a Loan Against RPLI?
Yes, a loan facility is available against eligible RPLI policies.
If a policy has been active for at least three years and has a surrender value of at least ₹1,000, the policyholder may be able to take a loan against it, subject to applicable rules.
A lapsed policy can also be revived in certain situations.
A medical examination may be required in some cases, including where the policyholder is over 35 years old or the sum assured exceeds ₹25,000, subject to the applicable rules.
Policyholders can also nominate up to three nominees.
RPLI vs PLI: What’s the Difference?
RPLI and Postal Life Insurance (PLI) are not meant for exactly the same group of people.
PLI is mainly available to government and semi-government employees and certain eligible professional categories.
RPLI was originally designed for rural residents. But after the latest rule change, the rural residency condition has been removed.
This could significantly expand the number of people who can apply for the government-backed insurance scheme.
However, the Postal Department has clarified that other important conditions, including age, sum assured and underwriting requirements, remain unchanged.
