Bonus for Post Office Life Insurance policies declared – Check details

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Updated: February 24, 2021 5:29 PM

The government has declared the bonus applicable to Post Office Life Insurance policies and also Rural Postal Life Insurance Policies.

Post Office Life Insurance policies, Terminal Bonus, children policies, Whole Life, PLI policies,The bonus amount will be paid as and when they become due on death of the life insured or on maturity of the policy.

The wait is over for the of Post Office Life Insurance policyholders to know how much bonus have they earned in their policies. The government has declared the bonus applicable to Post Office Life Insurance (PLI). The rates of Bonus will be applicable for the Financial Year 2021-22 and will be effective from 01.04.2021. On the Whole Life Assurance the bonus has been set at Rs. 76 per thousand of sum assured while for Endowment Assurance including Joint life and children policies, Rs. 52 per thousand of sum assured will be the bonus amount.

There are six Post Office Life Insurance polices to choose from and all of them are traditional in nature, i.e. not market-linked. These are – Whole Life Assurance (Suraksha), Endowment Assurance (Santosh), Convertible Whole Life Assurance (Suvidha), Anticipated Endowment Assurance (Sumangal), Joint Life Assurance (Yugal Suraksha) and Children Policy (Bal Jeevan Bima).

According to the Post Office Life Insurance Rules (2011) and on the basis of Actuarial Valuation of the assets and liabilities of Post Office Life Insurance Fund (POLIF) as on 31.03.2020, the Simple Reversionary Bonus on the Postal Life Insurance Policies have been declared by the government. The bonus amount will be paid as and when they become due on death of the life insured or on maturity of the policy.

Bonus declared on Postal Life Insurance Policies

i. Whole Life Assurance (WLA): Rs. 76 per thousand of sum assured

ii. Endowment Assurance (EA): (including Joint life & children policies): Rs. 52 per thousand of sum assured

iii. Anticipated Endowment Assurance (AEA): Rs. 48 per thousand of sum assured

iv. Convertible Whole Life Policies (CWA): Whole Life bonus rate would be applicable, but on conversion, Endowment Assurance bonus rate will be applicable

v. Terminal Bonus Rs. 20 per sum assured of Rs. 10,000 subject to maximum of Rs. 1000 for Whole life assurance and
Endowment assurance policies with term of 20 years or more.

The postal life insurance polices are managed by the Department of Posts under the Ministry of Communications which brings the sovereign guarantee in the PLI polices.

Since 1894, postal life insurance (PLI) was available only to the government and semi-government employees, including the employees of public sector undertakings, financial institutions, and nationalized banks. However, from 2017, it was made open to a more wider section of the population. Life insurance policies under PLI has been made available to professionals such as Doctors, Engineers, Management Consultants, Charted Accountants, Architects, Lawyers, Bankers etc. and to employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

In addition the bonus amount on Rural Postal Life Insurance Policies will be:

i. Whole Life Assurance (WLA): Rs. 60 per thousand of sum assured

ii. Endowment Assurance (EA): (including children policies): Rs. 48 per thousand of sum assured

iii. Anticipated Endowment Assurance (AEA) (including GP policies): Rs. 45 per thousand of sum assured

iv. Convertible Whole Life Assurance: Whole Life bonus rate would be applicable, but on conversion, Endowment Assurance bonus rate will be applicable.

v. Terminal Bonus Rs. 20 per sum assured of Rs. 10,000 subject to maximum of Rs. 1000 for Whole life assurance and Endowment assurance policies with term of 20 years or more.

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