Parents often invest in various schemes to secure their children’s future, but one such option is the Post Office Bal Jeevan Bima Scheme, which many people are unaware of.
This insurance scheme is designed specifically for children and is part of the Postal Life Insurance (PLI) offerings.
Under this scheme, children are provided with a sum assured of up to Rs 3 lakh on maturity, along with life insurance coverage. Additionally, a bonus, similar to an endowment policy, is also included. Here are the key details about the scheme:
Different Sum Assured for PLI and RPLI
The scheme offers different sum assured amounts under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI). PLI offers a sum assured of up to Rs 3 lakh, while RPLI provides a sum assured of up to Rs 1 lakh.
The premiums for both types also differ. To make the policy more attractive, a bonus is provided, similar to an endowment policy. For RPLI, a bonus of Rs 48 is given annually for every Rs 1,000 sum assured. For PLI, the bonus is Rs 52 per Rs 1,000 sum assured.
Maximum Two Children Covered
The Post Office Bal Jeevan Bima Scheme can be purchased by parents for their children. The benefit is available for up to two children, aged between 5 and 20 years. Parents who wish to purchase this policy must be under 45 years of age.
Paid-Up Policy After 5 Years
After paying premiums for 5 years, the policy becomes a paid-up policy. Parents are responsible for paying the premiums, but if they pass away before the policy matures, the premiums for the child are waived. If the child passes away, the sum assured, along with the bonus, is paid to the nominee.
No Loan Facility
This scheme offers flexible premium payment options—monthly, quarterly, half-yearly, or yearly. However, it does not provide a loan facility like other policies.
There is also no requirement for a medical examination when enrolling a child, though the child must be in good health. Additionally, the policy cannot be surrendered.
This scheme offers a great way for parents to secure their child’s future, but it’s important to be aware of these specific conditions.
