FREQUENTLY ASKED QUESTIONS & ANSWERS

SINGLE-PREMIUM PAYMENT OPTION UNDER SANTOSH (PLI) AND GRAM SANTOSH (RPLI)

Reference: Directorate of Postal Life Insurance OM No. 25-01-LI/2026 dated 12.11.2026

1. GENERAL POLICY & ELIGIBILITY

Q1: Which postal life insurance products offer the Single-Premium Payment Option?

Answer: The Single-Premium Payment Option is available exclusively under two Endowment Assurance products: Santosh under Postal Life Insurance (PLI) and Gram Santosh under Rural Postal Life Insurance (RPLI). It was approved under Rule 5(21) of the Post Office Life Insurance Rules, 2011.

Q2: When will the Single-Premium facility become operational?

Answer: The facility is scheduled to be operationalized nationwide through the Insurance Management Solution (IMS) with effect from January 1, 2027.

Q3: Can an existing policyholder convert their regular-premium Santosh or Gram Santosh policy into a Single-Premium policy?

Answer: No. The Single-Premium Payment Option is available strictly at the time of purchasing and commencing a new policy. Existing regular-premium policies cannot be converted into single-premium policies, nor is this option the same as making advance premium deposits during a policy's term.

Q4: Are the age limits, policy terms, and Sum Assured different for Single-Premium policies?

Answer: No. All existing product parameters of Santosh (PLI) and Gram Santosh (RPLI)—including minimum/maximum Sum Assured, eligible entry and maturity ages, maturity benefits, death benefits, and policy loan provisions—remain unchanged.

2. PREMIUM, BONUS & SURRENDER RULES

Q5: How is the single premium calculated and paid?

Answer: The proposer pays the entire applicable premium for their chosen Sum Assured and policy term in one lump sum at the inception of the policy. The rates are determined using the approved actuarial rate tables (per Rs. 5,000 Sum Assured for PLI Santosh and per Rs. 1,000 Sum Assured for RPLI Gram Santosh). No further premiums are payable during the policy term.

Q6: How are bonuses and surrender values treated under this option?

Answer:

- Surrender Value: Because the entire premium is paid upfront, the policy is treated as fully paid-up from inception. Existing surrender value factors apply to the full Sum Assured, subject to completing the prescribed minimum holding period before surrender.

- Bonuses: Existing bonus provisions continue to apply, with the actuarial valuation reviewing bonus supportability for Single-Premium policies periodically.

Q7: What underwriting and compliance rules apply?

Answer: Standard medical and non-medical underwriting norms apply, and the proposer's aggregate Sum Assured across all existing PLI/RPLI policies is counted to determine medical examination requirements. Because a substantial lump sum is collected in a single transaction, strict compliance with KYC, Anti-Money Laundering (AML), and Counter Financing of Terrorism (CFT) guidelines is mandatory.

3. PROCUREMENT INCENTIVES & FINANCIAL SAFEGUARDS

Q8: What is the incentive structure for procurement and technical monitoring?

Answer: The total procurement incentive is 1.95% of the actual Single Premium realized (payable once per policy), plus an additional 0.05% technical monitoring allocation:

- Sales Force: 1.75%

- Promotional Officers / Staff: 0.20% (distributed as: DO PLI – 0.06%, ASP HQ – 0.06%, SDH – 0.04%, MO – 0.02%, and DH – 0.02%)

- Technical Monitoring Incentive (CEPT, Mysuru): 0.05% of annual single-premium receipts, disbursed once a year to eligible technical staff maintaining the IMS module.

Q9: What financial safeguards has the Consulting Actuary recommended for Single-Premium funds?

Answer: To protect the Postal Life Insurance Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) against reinvestment and Asset-Liability Management (ALM) risks:

1. Single-premium receipts should primarily be invested in long-dated Government bonds.

2. Premiums, reserves, claims, and surrenders must be tracked separately for annual actuarial valuation.

3. Early death claims (especially within the first 2 to 3 policy years) and surrender trends must be periodically reviewed.

4. The Directorate will conduct its first comprehensive review of the facility and incentive structure four months after rollout.

4. SAMPLE PRACTICAL CALCULATIONS (BASED ON ANNEXURE-I RATES)

Q10: How much single premium does a 30-year-old proposer pay for a PLI Santosh policy of Rs. 5,00,000 maturing at age 55?

Answer:

- According to the PLI Single-Premium Rate Table (Annexure-I), for Entry Age 30 and Maturity Age 55, the single premium per Rs. 5,000 Sum Assured is Rs. 3,027.06.

- Multiplier for Rs. 5,00,000 Sum Assured = 5,00,000 / 5,000 = 100.

- Total Single Premium Payable = 3,027.06 x 100 = Rs. 3,02,706 (plus applicable GST).

Q11: How much single premium does a 25-year-old proposer pay for an RPLI Gram Santosh policy of Rs. 2,00,000 maturing at age 50?

Answer:

- According to the RPLI Single-Premium Rate Table (Annexure-I), for Entry Age 25 and Maturity Age 50, the single premium per Rs. 1,000 Sum Assured is Rs. 619.86.

- Multiplier for Rs. 2,00,000 Sum Assured = 2,00,000 / 1,000 = 200.

- Total Single Premium Payable = 619.86 x 200 = Rs. 1,23,972 (plus applicable GST).