A convertible insurance plan is a type of life insurance that can change the policy into a whole or universal policy. RPLI Convertible Whole Life Assurance is one such example available under Rural Postal Life Insurance Scheme. So, this policy offers the option of converting a life insurance policy based on the financial requirements of the policyholder. Hence, it benefits the policyholder as per their needs.
The person needs to fulfill some eligibility criteria to avail of the benefits of the Gram Suvidha post office scheme. Below, we have given the age eligibility criteria that need to be fulfilled:
Convertible Whole Life Assurance plan- Age Criteria
|Minimum age for entry||19|
|Maximum age for entry||45|
Salient features of Convertible Whole Life Assurance (Gram Suvidha)
It is a convertible whole life insurance plan. Individuals can choose a plan to pay its premium, and it can be monthly, annual, half-yearly, and quarterly. RPLI is known for offering one of the highest returns in the country. These policies were introduced to ensure life insurance for rural people of India.
This policy aims to extend insurance to rural India and emphasize the weaker sections, including women, to avail health insurance policies. The policies are quite uniquely designed to benefit weaker sections of society.
- In case of the policyholder’s death, the nominee will be paid the full amount of the sum assured with accrued bonus.
- The minimum entry age is 19 years, and the maximum entry age is 45 years.
- The minimum sum assured is rupee 10,000, whereas the maximum sum assured is rupee 10 lac.
- Policyholders can avail of the loan facility after four years.
- Surrender after three years.
- Last declared onus- ₹ 65/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
One of the benefits of the Gram Suvidha post office scheme is a grace period. In this, if a policyholder has not paid their premium on time and the policy is discontinued due to late payments. Then, they can revive their policy by paying some nominal late fees.
When policyholders require some money, they can lend money from the bank based on their policy. To avail of this loan facility, they need to fulfill some eligibility criteria. A loan can be taken if the policyholder has successfully paid the premium for five years.
RPLI Convertible Whole Life Assurance policy will have some tax benefits. Policyholders who issued policy before March 31, 2012, can avail a tax deduction of 20% of the sum assured. However, policyholders who issued policy after April 1. 2012, will be eligible to an avail tax benefit of 10% of the sum assured.
All these RPLI schemes are the best life insurance policies for the rural people of India. They are quite customizable for them and offer the highest returns. There are very few insurance providers that offer revival options, and it is one of the best features of these schemes.