Rural Postal Life Insurance (RPLI) policies offer a surrender option to policyholders after successfully maintaining the policy for at least three years. To surrender your RPLI policy, you need to submit an application form along with the required documents. Once your application is processed, the surrender amount will be credited to your Post Office Savings Bank account within 2–3 days.
RPLI was introduced by the Postal Department of India to provide affordable life insurance coverage for rural citizens. Its low premiums make it a popular choice compared to other insurance schemes.
If you no longer wish to continue your RPLI policy, you have the option to surrender it or hold it until maturity. Alternatively, if you’ve missed premium payments, you can apply for policy revival to keep it active.
Surrender Rules and Conditions
Before surrendering your RPLI policy, you must understand the following rules and conditions:
- Policies can only be surrendered after completing 3 years. However, AEA (money-back policies) and Children’s policies are not eligible for surrender.
- If you surrender before completing 5 years, no bonus will be paid.
- After 5 years, you can surrender your policy and receive a bonus based on a reduced sum assured.
- The surrender value depends on the surrender factor, the policy type, and the policy term.
- Only policies with up-to-date premium payments are eligible for surrender.
- You must provide the original policy document and passbook.
While surrendering your policy is an option, it’s generally not advisable as it may lead to financial loss. Consider other options like reviving the policy to continue enjoying its benefits.
Documents Required for Surrender
To surrender your RPLI policy, gather the following documents:
- Original policy document and passbook
- Surrender application form
- Surrender consent form
- ID and address proof
- Bank account details or Post Office Savings Account number
Submit these documents to the divisional head post office or the RPLI/PLI division branch. The divisional office is authorized to process and approve surrender applications.
RPLI Surrender Factor Table
Use this surrender value calculator for quick and accurate results.
If you want to surrender your Rural Postal Life Insurance (RPLI) policy, The surrender value is calculated using a simple formula:
Formula:
PLI Surrender Value = (Paid-up Value + Reduced Bonus) × Surrender Factor
Let’s break this down step by step:
1. Paid-up Value: This is the part of the sum assured you earn based on the premiums you’ve paid.
Paid-up Value = (Sum Assured × Number of Premiums Paid) / Total Policy Term
2. Reduced Bonus: This is the bonus amount you’re eligible for.
It’s usually lower than the full bonus because you’re surrendering the policy early.
3. Surrender Factor: A percentage that depends on your policy term and the number of premiums paid. visit the official site for more info.
For Example:
- Sum Assured: ₹5,00,000
- Policy Term: 20 years
- Premiums Paid: 10 years
- Bonus: ₹50 per ₹1,000 sum assured/year
- Surrender Factor: 50%
Calculation:
- Paid-up Value = ₹2,50,000
- Reduced Bonus = ₹2,00,000
- Surrender Value = (₹2,50,000 + ₹2,00,000) × 0.50 = ₹2,25,000
My suggestion
Surrendering an RPLI or PLI policy is not a good choice and You should avoid if it’s possible. If you surrender your policy after 3 years or before completing 5 years, you will not receive the full amount you have deposited, and you will also lose the bonus. However, if you surrender it after 5 years, you will receive the bonus based on the reduced sum assured.
Still, the primary objective and benefits of an RPLI or PLI policy cannot be fully realized in such a case. Instead of surrendering the policy, try to keep it active and treat it as a life-support system to ensure its long-term benefits.
People Want to Know
Pli Rpli Policy Can be Surrendered After How Many Years
Ans: A PLI or RPLI policy can be surrendered after three years. If you surrender before completing 5 years, no bonus will be paid. After 5 years, you will receive a bonus based on a reduced sum assured.
Minimum Age of Surrender a RPLI Policy
Ans: The minimum age for surrendering an RPLI policy is three years.
Bonus Rate for RPLI Surrender Policy
Ans: No bonus will be paid before 5 years of the policy, and after 5 years, you will receive a bonus based on a reduced sum assured. The bonus rate depends on your policy. For Endowment Assurance ₹ 48/- per ₹ 1000 sum assured per year