1. What is Postal Life Insurance?

Postal Life Insurance (PLI) is a life insurance policy provided by India Post. It offers various insurance products with guaranteed returns and bonuses declared by the government.

2. How Maturity is Calculated

The maturity amount is calculated using the simple formula:

Where:

• Sum Assured — The guaranteed amount you receive at maturity
• Bonus — Additional amount declared by the government based on policy performance

3. Understanding Sum Assured and Bonus

Sum Assured: This is the base amount you're guaranteed to receive at the end of the policy term. It depends on your premium payments and policy type.

Bonus: PLI policies typically declare bonuses annually. These bonuses accumulate over the policy term and are added to the sum assured at maturity.

4. Using the Calculator

Instructions: Enter the sum assured amount (in rupees) and the total bonus amount (in rupees) to calculate your expected maturity amount.

5. Frequently Asked Questions (FAQ)

Q1: How is the bonus calculated in PLI?
A: The bonus rate is declared annually by the government and is usually a percentage of the sum assured.

Q2: Is the maturity amount taxable?
A: Maturity proceeds from PLI are generally tax-free under Section 10(10D) of the Income Tax Act.

Q3: Can I surrender my PLI policy early?
A: Yes, but surrender values are typically lower than the total premiums paid in early years.

Q4: How often are bonuses declared?
A: Bonuses are typically declared annually and added to your policy.

Q5: Where can I check my bonus details?
A: You can check your bonus statements at your post office or through India Post's online services.