Post Office Insurance Scheme for Children: Parents often invest in various plans to secure their children’s future.
One such lesser-known scheme offered by the post office is the Post Office Bal Jeevan Bima Scheme.
This is a special life insurance plan for children, run under Postal Life Insurance (PLI). It provides life insurance cover along with a guaranteed amount of up to ₹3 lakh on maturity.
In addition, the scheme also offers a bonus, similar to what is offered in endowment policies. Here are the key details of this scheme.
Different Sum Assured in PLI and RPLI
The sum assured under the child insurance scheme varies based on whether it is taken under Postal Life Insurance (PLI) or Rural Postal Life Insurance (RPLI).
In PLI, you can get a sum assured of up to ₹3 lakh, while in RPLI, the maximum is ₹1 lakh. The premium amount also differs for both. To make the policy more attractive, it includes a bonus like endowment policies.
Under RPLI, you get a bonus of ₹48 per ₹1,000 sum assured every year. Under PLI, the bonus is ₹52 per ₹1,000 annually.
Only Two Children Can Be Covered
A maximum of two children in a family can be covered under this scheme. Whether you choose PLI or RPLI, the benefits remain limited to two children.
As mentioned earlier, the sum assured and bonus rates vary between the two options.
In RPLI, ₹48 bonus per ₹1,000 is given every year, and in PLI, it is ₹52 per ₹1,000. The premium rates also differ depending on the plan selected.
Becomes Paid-Up Policy After 5 Years
After paying premiums regularly for 5 years, the policy becomes a paid-up policy. Once the plan is taken, the parents are responsible for paying the premium.
However, if a parent dies before the policy matures, the future premiums are waived off. In case the child passes away, the nominee receives the sum assured along with the bonus.
No Loan Facility Available
You can pay the premium monthly, quarterly, half-yearly, or yearly. But unlike other insurance plans, this scheme does not offer a loan facility.
Also, there is no requirement for a medical examination when buying this policy for a child, although the child should be in good health.
It’s important to note that the policy cannot be surrendered before maturity.
