The Gram Sumangal Rural Postal Life Insurance Scheme, also known to as the Anticipated Endowment Assurance is a money-back scheme. The policy is eligible for individuals who have periodic requirements of cash for their short-term financial liabilities. This policy is targeted to provide insurance cover to the people belonging to rural areas. There are two types of the plan under this policy – 15 years term and 20 years term.
Eligibility Conditions for Gram Sumangal
Minimum entry age is 19 years
Maximum entry age is 45 years – 15-year term 40 years – 20-year term
Eligible employees Employees of:
- State Government
- Reserve Bank of India
- Central Government
- Local Bodies
- Defence Services
- Public Sector Undertakings
- Para Military Forces
- Government-aided Educational institutions
- All scheduled Commercial banks
- Autonomous bodies
- Financial institutions
- Nationalized banks
- Extra departmental agents in Department of Posts
How Gram Sumangal Works
The Gram Sumangal or the Anticipated Endowment Assurance work in two kinds of plans:
Plan 1: 15-year term policy
Plan 2: 20-year term policy
The sum guaranteed under these plans are paid in four installments throughout the term. In case the assured meets with death, the nominee gets the sum assured with the accumulated bonus amount if any. The payment does not involve any adjustment from the previously made survival advance payments. In case the premium is stopped prior to its maturity date, the reduced sum assured is granted, only if there have been no missed premiums for at least three years, only at the end of the policy’s termination date.
Benefits of Gram Sumangal
The following are the benefits and advantages of the Gram Sumangal rural postal life insurance scheme:
Survival Benefit: The survival advantage under the Gram Sumangal scheme is cleared in periodic payments.
Death Benefit: In case of the death of the assured individual in the term under the Gram Sumangal, the total sum assured and the accumulated bonus is payable to the nominee without any adjustments from the already made periodical payments towards survival benefit.
Maturity Benefit: On maturity of the policy term, the insured gets the sum assured with the earned bonuses if any.
The assured is covered from the day the insurance scheme proposal is accepted.