RPLI post office scheme: Rural Postal Life Insurance

Who can buy the RPLI post office scheme

Any person living in a rural area can buy RPLI, whether a farmer, labourer, shopkeeper, teacher or homemaker. Unlike PLI, there is no condition about the type of employment. People in eligible jobs who live in villages can choose either PLI or RPLI. For the urban employee version, see Postal Life Insurance.

RPLI plans at a glance

Gram Sumangal and Gram Suraksha in more detail

Gram Sumangal pays a share of the sum assured at set points in the term, for example after a fixed number of years, and the balance with bonus at maturity, while the full cover continues. It suits families who want money at intervals for school fees or farming costs. Gram Suraksha keeps you covered for life and builds bonus over many years; premiums can be paid up to a chosen age. Both are among the most sold RPLI plans.

RPLI interest rate: bonus, not interest

RPLI does not pay a fixed interest rate. Each year a bonus is declared per ₹1,000 sum assured and added to the policy. RPLI bonus rates are usually a little lower than PLI's. The Department of Posts publishes each year's figures, and any counter can tell you the latest.

Gram Suraksha yojana and other names you will hear

In villages, plans are often called by local names: Gram Suraksha yojana post office scheme, Grama Sumangala scheme in South India, or simply the gram sumangal scheme in post office. They are the RPLI plans listed above with the same national rules. Anyone wanting the post office gram suraksha yojana scheme details or the RPLI post office scheme in Hindi can get printed details and Hindi forms at any branch office. As for the RPLI interest rate in post office, remember again that it is a bonus, not interest.

Limits, loans and tax

• Sum assured from ₹10,000 up to ₹10 lakh.
• Loans against the policy after a few years, depending on the plan.
• Surrender possible after three years, at a reduced value.
• Premiums deductible under the old regime within the ₹1.5 lakh limit (section 123, formerly 80C).

How to apply for RPLI

Forms in Hindi and regional languages are available at the counter.

Is RPLI a good choice

For rural families who want simple life cover from a trusted local office, RPLI is often the cheapest option available. If the main aim is saving rather than cover, a post office RD or PPF gives clearer returns. Many families keep both: RPLI for protection and an RD for savings.