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Postal Life Insurance

Tahir MahmoodKASB Institute of Technology

LOW PREMIUM ---- HIGH BONUS

Established in 1884

Initially meant for low-paid postal employees

Its ambit stands extended to general public

Also available for sale to all Government Servants / Private organizations

Post Office Insurants Fund has risen from Rs.9.6 million to Rs.20 billion

Postal Life Insurance

• Contribute to National Savings and progress of the country

• Extend insurance business even to the remotest and neglected areas

• Use of policy holder’s fund in the interest and welfare of the society

• Maximum benefits to the policy holders at the minimum possible cost

• Ensuring efficient and quality service to the policy holders

Objectives

A beautiful view of Shangrila resort Skardu

Administrative Setup

• Chairman/ DG Pakistan Post

• Add Director General (PLI)

• General Managers (PLI)

• Regional Directors (PLI)

• Asstt General Managers (PLI)

• Assistant Directors Field (PLI)

Ensures bright future and prosperity to the insurant and to the nation

Low premium rates with high bonus rates

Premium payable on monthly quarterly, six monthly and yearly basis

Payment of premium at any post office in Pakistan

Maximum limit is Rs.5 million

Salient Features of PLI Schemes

Centaurus Islamabad 

Risk of all sorts of casualties covered under the scheme

Compulsory savings for all

Insurance coverage on very easy terms and conditions

Loan facilities on policies

Attractive rebates on the advance payment of each yearly / 6 monthly premium

Payment guaranteed by Government of Pakistan

Muzaffarabad after Earthquake 9 Oct 2005

Types of policies

WHOLE LIFE POLICY

• Cheapest survival arrangement for a family against premature casualty of the bread earner

• Premium can be paid till the age of 50,55,60 or 70 years as it suits to the insurant

• The sum assured + bonus is payable at the attaining the age of 85 years or the casualty of policy holder

ENDOWMENT POLICY

• Purchasable for any sum

• Payable at the expiry of the specified term or on his attaining the age of 30,35 ------ 70 years or on his death whichever is earlier

JOINT LIFE INSURANCE

• Any sum payable at the expiry period of 10,15 ------ 35 years or at the death of either of the two insured persons

THREE PAYMENT PLAN• Insurants feel comfortable with

TPP

• Can be purchased for fixed term of 12,15 ----- 30 years

• 25 % of the sum assured is payable to the policy holder at the end of the one third of the term

• 25 % at the end of the two third of the term, 50 % along with the accrued bonus at the end of term

• In case of death of the policy holder, total sum assured + full bonuses is payable to the claimant irrespective of the payments already made to the policy holder during his life time

EDUCATIONAL & MARRIAGE ENDOWMENT

• Issued for the period ranging from 5-17 years

• The period of endowment is timed as per requirement of the beneficiary child

• In case of death of the insured before the specified date, the policy becomes a claim and payment of further installments are waived off

• The amount of claim is deposited in S.B account in the name of the nominated child and is paid with accruing profits on the specified date/expiry of term

ACCIDENTAL INSURANCE• Issued in combination with whole

life or endowment assurance as a supplementary contract

• Minimum Rs. 50000• Payment of an additional amount of

Rs. 1500 for accidental disability. (for 5 Lac)

• Supplementary contract ceases to be operative on maturity of the principle policy in the natural course

• Disability includes loss of one or two of his hands/legs or eyes

• Supplementary contracts are not admissible in case of non medical policies and in case of defence personnel

CHILD PROTECTION POLICY• CPP is issued jointly on the lives

of the child and the father or mother

• No other relative is allowed to be associated with the policy

• It is issued when the age of the child is between 1 to 17 years as per details given below:

AGE ON ENTRY

MINIMUM MAXIMUM

Child 6 months 17 years

Payer 20 years 50 years

GROUP INSURANCE

• Under the Group Insurance scheme, the entire group, (all employees of a particular department are insured)

• Premium is paid collectively by the department

• Agreement is signed for one, two or three years

• After the expiry period of contract the GM PLI may refund a part of the profit, if any revealed, to the party concerned

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Strength of PLI

• A relatively well organized system both in terms of management and its physical network

• About 126 years of experience in Life Insurance

• High bonus and lowest premium

• Guaranteed by the state

• Accessibility in the remotest areas of Pakistan through wide network

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• Departmental and non-departmental field force

• Premium payable on monthly, quarterly, six monthly and annually

• Confidence of general public in Pakistan Post and PLI

• Exemption fromTax

• Exemption from supervisory fee

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