This page provides all the details you need to know about the Whole Life Assurance (Gram Suraksha) policy.
Before you read this page, please check RPLI Overview to learn about the basics of RPLI.
Table of Contents
What is WLA?
WLA stands for Whole Life Assurance policy. It is also known as Gram Suraksha.
It is an investment cum life insurance policy.
It is a life insurance policy where the maturity amount (sum assured amount plus accumulated bonus amount) will be paid to you when you reach 80 years of age.
In case of your death before the age of 80 years, the sum assured amount and any bonus accumulated till the day of your death will be paid to your nominees or legal heirs.
How does WLA Policy work?
Decide the Sum Assured amount and purchase the policy at a Post Office
Choose one of the premium paying terms available for your age
The monthly premium amount will be decided based on your age, sum assured amount and the premium paying term
You need to pay the premium amount every month till the end of the premium paying term
When the premium paying term ends, you need not pay any premium further
The bonus amount will be accumulated every year as per the bonus rate during the premium paying term
You'll receive the maturity amount when you reach 80 years of your age. The maturity amount is the total of the sum assured amount and the accumulated bonus
If you die before 80 years of your age, then your nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of your death
You can purchase this insurance policy between 19 years and 55 years of your age.
This insurance policy provides flexible term periods.
You can choose a policy term period from 5 years to 41 years depending on your age of entry into the policy.
Sum Assured Amount
Minimum amount - Rs. 10,000
Maximum amount - Rs. 10 Lakhs
The current bonus rate is Rs. 60 per Rs. 1,000 Sum Assured per year.
The bonus rate is not fixed and it changes from time to time as announced by the Government.
If you survive till 80 years of your age, then you'll receive the maturity amount.
The maturity amount is the total of the sum assured amount and the accumulated bonus amount.
If you die before 80 years of your age, then your nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of your death.
To purchase this policy, whether you need to undergo a medical test or not is based on the sum assured amount and your age.
If the sum assured amount is Rs. 25,000 or less and your age is 35 years or less, then you need not undergo any medical test.
If the sum assured amount is more than Rs. 25,000 or you are more than 35 years old, then the medical examination is compulsory to prove that you are healthy.
You can convert this policy into Endowment Assurance (Gram Santosh) policy after completion of 1 year and up to 59 years of your age.
Note that the date of conversion should not fall within one year of the end date of the premium paying term or the maturity date.
Loan facility is available in this policy.
You can apply for a loan after completion of 4 years. But, you will not get any bonus if you pledge your policy for a loan before completion of 5 years.
The proportionate bonus on the reduced sum assured amount is accumulated if the policy is assigned for a loan after 5 years.
You can surrender the policy after completion of 3 years. But, you will not get any bonus if you surrender your policy before completion of 5 years.
The proportionate bonus on the reduced sum assured amount is paid if the policy is surrendered after 5 years.