Rural Postal Life Insurance bonus declared: Rs 47 to Rs 65 per Rs 1000 of sum assured – Check details

The Department of Posts under the Ministry of Communications has declared the bonus rates on the policyholders of Rural Postal Life Insurance Policies. The objective of the Rural Postal Life Insurance (RPLI) is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population.

On the basis of Actuarial Valuation of the assets and liabilities of Rural Post Office Life Insurance Fund (RPOLIF) as on 31.03.2017, 31.03.2018 and 31.03.2019, the Director-General (Posts) declared a simple Reversionary Bonus on the Rural Postal Life Insurance Policies on their becoming claims, due to death or maturity at the following rates.

The bonus is declared on every Rs 1000 of the sum assured and is payable on death during the term or on the maturity of the policy. Being Simple Reversionary, there is no effect of compounding in the policy. For example, if the bonus is Rs 50 per Rs 1000 in a policy with Rs 1 lakh of sum assured, the annual bonus amount will be Rs 5,000 payable on maturity or on death to the nominee.

The rates of Bonus will be applicable for the Financial Years 2016-17, 2017-18, 2018-19 and 2019-20. Interim Bonus will also be payable for all claims arising due to maturity or death until the future valuation is completed.

The bonus declared is as follows:

Whole Life Assurance (WLA) – Rs. 65 per thousand of sum assured. This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years, or to his or her nominees on death of the insured, whichever occurs earlier, provided the policy is in force on the date of claim. The minimum and maximum age at entry is 19-55 years while the minimum sum assured is Rs 20,000 and maximum of Rs 50 lakh. Using RPLI bonus calculator, one can calculate the bonus on any policy.

Endowment Assurance(EA) (including children policy) – Rs. 50 per thousand of sum assured. Under this scheme the policyholder is given an assurance to the extent of the sum assured and accrued bonus till he or she attains the pre- determined age of maturity i.e 35,40,45,50,55,58 and 60 years of age.

Anticipated Endowment Assurance (AEA) – Rs. 47 per thousand of sum assured.

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

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.

Earlier, the government had relaxed the premium payment rules for the policyholders by informing that they can now pay their premiums payable for March 2020, April 2020 and May 2020 without any penalty or default fee till 30.06.2020.