What is the mode of premium deposit?
The Premium Receipt Book is issued to the Insurants for the deposit of Premium in any departmental PO, and there is a facility of recovery from pay for all employees belonging to the Central Government.
Is there any other mode of payment?
The premium can be paid through Cheque.
Is premium recovered through salary?
Yes, recovery of the premia through salary is possible, in offices where it is remitted directly to PLI. In case where it is not, it is possible by appointing a Group Leader, who collects the premia from the insurants and deposits in a post office along with PR book. However, premia are to be deposited in any post office as per convenience i.e. monthly/half yearly/ yearly where there is no recovery through salary.
Why is the premia for children's policy higher?
As both children's and parent's risk is covered.
Can one revive a lapsed policy?
If the premia are not paid for 6 months in case policy is in currency for 3 years (or) 12 months in case policy is more than 3 years old, then the policy becomes void. This needs revival to make it active. Revival shall not be allowed on more than two occasions during the entire term of the policy. Policy can be revived any time one year before maturity.
What happens if one forgets to pay one's premium in a month?
One can pay the premium in the subsequent month, by paying a minimum fine of Re. 1/- per hundred of sum assured.
Loan
Is loan facility available in PLI?
Loan can be taken from EA policy after completion of 3 years and in respect of Whole Life after completion of 4 years. Loan facility is available in AEA policies.
Is Home loan available?
No
What are the terms on which loan can be availed?
- EA policies after 3 years from date of issue of policy
- WLA policies after 4 years.
- Interest 10% p.a. Calculated on six monthly basis
- Loan entitlement is calculated on a prefixed proportion of these surrender value
- Interest should be paid on(or) before 21st of due month (i.e. 6 monthly once)
- Surrender
What is surrender value of a policy?
"Surrender value" of a policy, means the amount that is payable to an assured, when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment.
What will be the surrender value of the policy?
Surrender value depends on the surrender factor and type and term of policy.
Can one get the full amount paid with accrued bonus, if policy is surrendered prematurely?
- Endowment Assurance policy can be surrendered after 36 months
- WWLA policy can be surrendered after 48 months
- Children policy can be surrendered after 60 months.
- No surrender for AEA policy
Bonus will be taken into account after 5 years for surrender value calculation on the paid up value. But surrendering any policy prematurely is always a loss to the insurant. Hence, it is suggested not to go for surrender.
It is not a simple saving scheme but it aims to give risk coverage also. It provides immediate Insurance coverage from the date of acceptance. Full policy amount with accrued bonus will be given even if death occurs on the very next day of acceptance of the proposals for all bonafide cases.