InvestorQ : What is postal life insurance(PLI) and good option to invest?
Siya Saran made post

What is postal life insurance(PLI) and good option to invest?

Abigail Ghoshal answered.
3 years ago
Postal Life Insurance (PLI) is an insurer that was introduced in India on 1st Feb 1884 under the Queen Empress of India and it is one of the earliest insurance schemes of India. At that time this scheme was launched for the welfare of the Postal Service employees. Later it was extended to the Department of Telegraph. Now, the policy is managed by the Department of Posts, Government of India.

In 1995, Government launched a scheme known as Rural Postal Life Insurance (RPLI) for rural areas of the country with special focus on weaker sections with the same benefits.

Postal Life Insurance (PLI) offers the products which are convenient and reasonably low in premium. It offers Life Insurance policies with very high returns at low premiums.

Postal Life Insurance (PLI) is offered only to the employees of Central and State Government Departments, Nationalized Banks, Public Sector Undertakings, Semi-Government Organisations, Local Bodies like Municipalities, Educational Institutions aided by the government, Professionals such as Doctors, Employees of listed companies, etc.
Currently, Postal Life Insurance (PLI) offers the following Products:
Whole Life Assurance (Suraksha)
Endowment Assurance (Santosh)
Convertible Whole Life Assurance (Suvidha)
Anticipated Endowment Assurance (Sumangal)
Joint Life Assurance (Yugal Suraksha)
Children Policy (Bal Jeevan Bima)
Postal Life Insurance (PLI) does not offer any pension and Unit Linked Insurance Plans (ULIP). It is a good option for them who are eligible for it as it provides higher returns and charges low premiums than comparable policies of life insurers. Exemption under section 88 of Income Tax is available for the premium paid for Postal Life Insurance (PLI). The maximum insurance amount limit under Postal Life Insurance (PLI) is Rs. 50 Lakhs.

In my opinion, Insurance policies should not be considered as investments as they are taken for risk cover in case of any adverse situation occurs. For investment, other options like mutual funds, stocks, etc. shall be considered.