The significance of life insurance has been especially felt by millions of Indians after the Covid 19 pandemic that snuffed out the lives of the earning members of thousands of families. The good old post office is one of the places from where one can buy life insurance.
Postal Life Insurance is one of India’s earliest insurance schemes. It was launched in February 1884. One of the schemes offered by the post office is called Whole Life Assurance-Suraksha. This scheme offers a maximum sum assured of Rs 50 lakh which comes bundled with income tax benefits.
Who can buy
Any Indian who is between 19 and 55 years old can buy a Whole Life Assurance-Suraksha policy. It entitles the policyholder to benefits ranging from a minimum of Rs 20,000 to a maximum of Rs 50,00,000. A bonus will also come with the offer which is determined at the time of payout. Premiums can be paid monthly, quarterly, six-monthly or annually. If the policyholder expires before the term ends, the entire sum is paid to the nominee mentioned in the policy or the legal heir.
Benefit of loan
A big benefit of the post office insurance scheme is that once the policyholder has paid premium for 4 years continuously, he/she can place it as a collateral and take a loan. If by any chance the policyholder cannot continue paying premium, one can also surrender it after running it for a minimum of 3 years. However, one will not be eligible for a bonus on it if it is surrendered before 5 years.
A policyholder is eligible to get bonus on the payout if the policy is run for at least for 5 years. If surrendered after 5 years, the policyholder will get a bonus on the sum assured on a pro-rata basis.
Income tax deductibility
The premiums paid for Postal Life Insurance can get the policyholder exemptions under Section 80C of the Income Tax Act 1961. The policy can be transferred to any part of India according to your convenience. Till FY21, more than 50 lakh insurance policies were sold from the post office.
Life insurance is a vital tool of financial security the importance of which has been acutely felt especially after the pandemic. One can buy insurance policies even from the post office. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
