Postal Life Insurance - Pros and Cons

Dear Mr. Batra,

Very recently, while I was planning to go for a Life Insurance Policy, I was advised by someone to explore into Postal Life Insurance. I was also told that their premium rates are very less than LIC and other insurance companies. Moreover, this scheme is run by govt. of india only for the people who are employee under any govt. orgn. and not for any non-govt public.

Since I am a govt employee I think I am eligible for this. And for that I primarily selected “SANTOSH” – an Endowment Assurance under PLI which is payable or claim on attainment of opted maturity.

I was born in 01.07.10970 and at present I am 42 years 5 months (approx) old. To have a coverage of 10 Lacs (Sum Assured) upto 60 years, I have to pay premium of Rs.4950/- per month under this PLI policy.

Sir, I would be grateful if you kindly help me with your valuable guidance regarding my queries as under :

(1) Is PLI good and trusted ? (2) I heard that it is not under IRDA. Is it true ? If yes, then what are the pros and cons ? (3) Is the rate of premium payable for PLI much more less than others ? (4) What about their return ? Does PLI ensure equal amount of return/bonus as others do ? Or does it ensure less than others ? (5) Does PLI have a good claim settlement record ? (6) If I have to spare Rs.4,950/- pm for 10 Lacs SA, what could be the premium for an equivalent policy under LIC ? What is the name of that policy ?

Thank you in advance for your valuable advice.

Rajib Ray

asked Dec 03 '12 at 12:02 by Rajib R 1449


I would advise you NOT to buy any insurance other than a plain term insurance plan. There is no point getting a sum assured of just 10 lacs for paying so much premium. Don't mix investment with insurance. Insurance is for protection and not for returns.

You may consider online term plans like HDFC Click 2 protect, ICICI Pru iCare etc. If you want only from LIC, then amulya jeevan may be good choice.

answered Dec 09 '12 at 22:08 by Pankaj Batra 5.2k320

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Asked: Dec 03 '12 at 12:02

Seen: 6,799 times

Last updated: Dec 09 '12 at 22:08