FORMS

Sunday, January 19, 2014

PLI loan - some important instructions

Postal Life Insurance (PLI) Loan
  • Loan is admissible on Whole Life Assurance (WLA), Endowment Assurance (EA) and Convertible Whole Life Assurance (CWLA) policies.
  • Currency of policy should be minimum of 3 years in case of EA and CWLA.
  • Currency of policy should be minimum of four years in case of WLA.
  • Policy should be unencumbered/ unassigned.
  • Loan Limit:
(a) Whole Life Assurance
Currency of Policy
Percentage of surrender value on which loan is admissible
More than 4 years to 7 years
60%
More than 7 years to 12 years
80%
More than 12 years
90%
  
(b) Endowment Assurance and Convertible Whole Life Assurance
Currency of Policy
Percentage of surrender value on which loan is admissible
More than 3 years to 5 years
60%
More than 5 years to 10 years
80%
More than 10 years
90%

Insurant should apply on LI-35 (loan application) and send to DDM (PLI) along with policy document and premium receipt book.
  •  Second and subsequent loan is admissible after a year if the first loan is fully repaid.
  •  Loan interest @ 10% p.a is calculated on six monthly basis.