The Gram Sumangal Yojana is one of the popular Rural Postal Life Insurance (RPLI) schemes launched by India Post. It is specially designed for rural people who want life insurance with periodic money-back benefits. Unlike traditional insurance, this scheme offers both financial protection in case of an unfortunate event and regular returns during the policy term, making it ideal for families in villages who need a mix of savings and insurance coverage.
Objective of the Scheme
The main aim of Gram Sumangal Yojana is to promote financial inclusion and provide rural citizens with affordable life insurance. Many people in villages cannot access private insurance companies due to high premiums or lack of awareness. Through this scheme, India Post ensures that rural households get secure investment options with life protection and regular survival benefits.
Key Features
- Type of Policy – It is a money-back endowment assurance plan. The insured person receives a portion of the sum assured at periodic intervals, even before the policy matures.
- Eligibility –
- Minimum entry age: 19 years
- Maximum entry age: 40 years
- Maximum maturity age: 60 years
- Policy Term Options – The scheme offers two terms:
- 15 years
- 20 years
- Sum Assured – The minimum sum assured is ₹10,000 and the maximum is ₹10 lakh.
- Survival Benefits –
- For a 15-year policy: 20% of the sum assured is paid at the end of 6, 9, and 12 years. The remaining 40% plus bonus is paid at maturity.
- For a 20-year policy: 20% of the sum assured is paid at the end of 8, 12, and 16 years. The remaining 40% plus bonus is paid at maturity.
- Death Benefit – In case the policyholder passes away during the term, the entire sum assured with accrued bonus is given to the nominee, irrespective of survival benefits already paid.
- Loan Facility – The scheme also allows taking loans against the policy after a certain period.
- Bonus – The policy earns bonuses as declared by the Postal Life Insurance fund from time to time, making it more profitable.
Benefits of Gram Sumangal Yojana
- Life Protection – The scheme secures the family financially in case of the policyholder’s death.
- Regular Returns – Money-back benefits provide liquidity at different stages of life.
- Affordable Premiums – Designed for rural families with reasonable premium rates.
- Government Backing – Since the scheme is operated by the Department of Posts, it is fully reliable and safe.
- Dual Advantage – Combines investment with insurance coverage.
Example
If a person takes a policy of ₹5,00,000 for 20 years, he/she will get ₹1,00,000 each at the end of the 8th, 12th, and 16th year. At the end of 20 years, the remaining ₹2,00,000 plus the accrued bonus will be paid. If the person dies during the policy term, the nominee receives the full sum assured with bonus, regardless of earlier payments.
Conclusion
The Gram Sumangal Yojana is a smart choice for rural families who wish to secure their loved ones and also receive money at crucial intervals for education, marriage, or other needs. With the trust of India Post and government support, it is one of the safest and most beneficial life insurance schemes for the rural population of India.