Postal Life Insurance (PLI) is a state-run life insurance program established in 1884 to provide insurance to postal employees. It has since expanded to serve the general public and government employees across Pakistan. PLI offers various whole life, endowment, accident, and child protection policies with low premiums and high bonus rates. Premiums can be paid flexibly and claims are guaranteed by the Government of Pakistan. PLI has a strong administrative network through Pakistan Post offices across the country, over 125 years of experience, and the confidence of the public.

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2. Postal Life Insurance
LOW PREMIUM ---- HIGH BONUS
Tahir Mahmood
KASB Institute of Technology

3. Postal Life Insurance
 Established in 1884
 Initially meant for low-
paid postal employees
 Its ambit stands extended
to general public
 Also available for sale to
all Government Servants /
Private organizations
 Post Office Insurants Fund
has risen from Rs.9.6
million to Rs.20 billion

4. Objectives
• Contribute to National Savings
and progress of the country
• Extend insurance business
even to the remotest and
neglected areas
• Use of policy holder’s fund in
the interest and welfare of the
society
• Maximum benefits to the
policy holders at the minimum
possible cost
• Ensuring efficient and quality
service to the policy holders
A beautiful view of Shangrila resort Skardu

5. Administrative Setup
• Chairman/ DG Pakistan Post
• Add Director General (PLI)
• General Managers (PLI)
• Regional Directors (PLI)
• Asstt General Managers(PLI)
• Assistant Directors Field (PLI)

6. Salient Features of PLI Schemes
 Ensures bright future and
prosperity to the insurant
and to the nation
 Low premium rates with high
bonus rates
 Premium payable on monthly
quarterly, six monthly and
yearly basis
 Payment of premium at any
post office in Pakistan
 Maximum limit is Rs.5 million
Centaurus Islamabad

7.  Risk of all sorts of casualties
covered under the scheme
 Compulsory savings for all
 Insurance coverage on very
easy terms and conditions
 Loan facilities on policies
 Attractive rebates on the
advance payment of each
yearly / 6 monthly premium
 Payment guaranteed by
Government of Pakistan
Muzaffarabad after Earthquake 9 Oct 2005

8. Types of policies
WHOLE LIFE POLICY
• Cheapest survival arrangement
for a family against premature
casualty of the bread earner
• Premium can be paid till the
age of 50,55,60 or 70 years as it
suits to the insurant
• The sum assured + bonus is
payable at the attaining the age
of 85 years or the casualty of
policy holder

9. ENDOWMENT POLICY
• Purchasable for any sum
• Payable at the expiry of the
specified term or on his
attaining the age of 30,35
------ 70 years or on his death
whichever is earlier
JOINT LIFE INSURANCE
• Any sum payable at the
expiry period of 10,15 ------
35 years or at the death of
either of the two insured
persons

10. THREE PAYMENT PLAN
• Insurants feel comfortable with TPP
• Can be purchased for fixed term of
12,15 ----- 30 years
• 25 % of the sum assured is payable
to the policy holder at the end of
the one third of the term
• 25 % at the end of the two third of
the term, 50 % along with the
accrued bonus at the end of term
• In case of death of the policy
holder, total sum assured + full
bonuses is payable to the claimant
irrespective of the payments
already made to the policy holder
during his life time

11. EDUCATIONAL & MARRIAGE
ENDOWMENT
• Issued for the period ranging from 5-17
years
• The period of endowment is timed as
per requirement of the beneficiary
child
• In case of death of the insured before
the specified date, the policy becomes
a claim and payment of further
installments are waived off
• The amount of claim is deposited in
S.B account in the name of the
nominated child and is paid with
accruing profits on the specified
date/expiry of term

12. ACCIDENTAL INSURANCE
• Issued in combination with whole
life or endowment assurance as a
supplementary contract
• Minimum Rs. 50000
• Payment of an additional amount of
Rs. 1500 for accidental disability.
(for 5 Lac)
• Supplementary contract ceases to
be operative on maturity of the
principle policy in the natural course
• Disability includes loss of one or two
of his hands/legs or eyes
• Supplementary contracts are not
admissible in case of non medical
policies and in case of defence
personnel

13. CHILD PROTECTION POLICY
• CPP is issued jointly on the lives
of the child and the father or
mother
• No other relative is allowed to
be associated with the policy
• It is issued when the age of the
child is between 1 to 17 years as
per details given below:
AGE ON MINIMUM MAXIMUM
ENTRY
Child 6 months 17 years
Payer 20 years 50 years

14. GROUP INSURANCE
• Under the Group Insurance
scheme, the entire group,
(all employees of a particular
department are insured)
• Premium is paid collectively
by the department
• Agreement is signed for one,
two or three years
• After the expiry period of
contract the GM PLI may
refund a part of the profit, if
any revealed, to the party
concerned

15. Strength of PLI
• A relatively well organized
system both in terms of
management and its
physical network
• About 126 years of
experience in Life Insurance
• High bonus and lowest
premium
• Guaranteed by the state
• Accessibility in the remotest
areas of Pakistan through
wide network
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16. • Departmental and non-
departmental field force
• Premium payable on
monthly, quarterly, six
monthly and annually
• Confidence of general public
in Pakistan Post and PLI
• Exemption fromTax
• Exemption from supervisory
fee
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