Convertible Whole Life Assurance, also known as Gram Suvidha, is a unique life insurance plan under the Rural Postal Life Insurance (RPLI) scheme.
It provides lifelong financial protection with an option to convert the policy into an Endowment Assurance after five years.
by converting whole life insurance into an endowment assurance you can get the benefits from a long-term insurance plan to a short-term policy with a fixed maturity amount.
Eligibility for RPLI Convertible Whole Life Assurance
- Eligibility:
- Minimum entry age: 19 years
- Maximum entry age: 45 years
- Sum Assured Limits:
- Minimum Sum Assured: ₹10,000
- Maximum Sum Assured: ₹10,00,000
- Conversion Option:
- The policy can be converted to an Endowment Assurance policy after 5 years but no later than 6 years.
- If not converted within this period, it will remain a Whole Life Assurance policy.
- Loan and Surrender Conditions:
- Loan facility available after 4 years.
- Surrender allowed after 3 years, but no bonus is paid if surrendered before 5 years.
Benefits of Gram Suvidha (Convertible Whole Life Assurance)
- Lifelong Coverage: Provides life cover until death if not converted, ensuring financial protection for the family.
- Conversion Flexibility: Policyholders can convert to an Endowment Assurance plan to receive the sum assured at a specific maturity age.
- Bonus Accumulation:
- Bonus for Whole Life Assurance: ₹60 per ₹1,000 sum assured per year.
- On conversion, the policy earns the Endowment Assurance bonus rate.
- Death Benefit: In case of death, the nominee receives the full sum assured along with the accrued bonus.
- Loan Facility: Policyholders can avail of loans after 4 years of continuous premium payment.
- Surrender Value: Surrender is allowed after 3 years, with a proportionate bonus paid if the policy is surrendered after 5 years.
Note
Convertible Whole Life Assurance (Gram Suvidha) offers the dual benefits of lifelong coverage and the flexibility to switch to an Endowment Assurance plan.
as comper to Endowment Assurance the premium rate is very low in this policy, you can get the benefits of low premium rates for five years then you can convert it to an Endowment Assurance.