PLI Anticipated Endowment Assurance (Sumangal)

This page provides all the details you need to know about the Anticipated Endowment Assurance (Sumangal) policy.

Before you read this page, please check PLI Overview to learn about the basics of PLI.

What is AEA?

AEA stands for Anticipated Endowment Assurance policy. It is also known as Sumangal.

It is an investment cum life insurance policy.

It is a money back insurance policy where you will get the benefits at periodic intervals. This policy is suitable for those who need benefits and returns at periodic intervals.

In case of your death during the policy term, the entire sum assured amount and any bonus accumulated till the day of death will be paid to your nominees or legal heirs.

How does AEA Policy Work?

• Decide the Sum Assured amount and purchase the policy at a Post Office

• Choose the policy term. Only two terms are available. They are 15 years and 20 years

• The monthly premium amount will be decided based on your age, sum assured amount and the policy term

• You need to pay the premium amount every month until the end of the policy term

• The bonus amount will be accumulated every year as per the bonus rate during the policy term

• If you choose 15 years term, then you will receive periodic benefits at the end of 6^th year, 9^th year, 12^th year and 15^th year

• If you choose 20 years term, then you will receive periodic benefits at the end of 8^th year, 12^th year, 16^th year and 20^th year

• If you die during the policy term, then your nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of your death

Age of Entry

The minimum and maximum age to purchase this policy is given below. The entry age depends upon the term you choose. 

15 Years Policy:

Minimum Age: 19 years

Maximum Age: 45 years

20 Years Policy:

Minimum Age: 19 years

Maximum Age: 40 years

Policy Term

This policy offers only two terms. They are

• 15 years

• 20 years

Sum Assured Amount

Minimum amount - Rs. 20,000

Maximum amount - Rs. 50 Lakhs

Bonus Rate

The current bonus rate is Rs. 48 per Rs. 1,000 Sum Assured per year.

The bonus rate is not fixed and it changes from time to time as announced by the Government.

Money Back Benefit Details

The money back benefit details will depend upon the term you choose. 

15 Years Term:

This policy will run for 15 years. In this policy, you will get your money back as per the following schedule.

• 20% of the Sum Assured amount at the end of 6^th year

• 20% of the Sum Assured amount at the end of 9^th year

• 20% of the Sum Assured amount at the end of 12^th year

• 40% of the Sum Assured amount and the accumulated bonus at the end of 15^th year

20 Years Term:

This policy will run for 20 years. In this policy, you will get your money back as per the following schedule.

• 20% of the Sum Assured amount at the end of 8^th year

• 20% of the Sum Assured amount at the end of 12^th year

• 20% of the Sum Assured amount at the end of 16^th year

• 40% of the Sum Assured amount and the accumulated bonus at the end of 20^th year

Death Benefits

In case of your death during the policy term, your nominees or legal heirs will receive the entire sum assured amount and any bonus amount accumulated till the day of death.

Any returns you received, as a part of the periodic money back schedule, will not be taken into consideration to calculate the final payment in case of your unexpected death.

Medical Test

You have to undergo the medical examination to prove that you are healthy. Only then, you will become eligible for this policy.

Loan Facility

Loan facility is available in this policy.

You can apply for a loan after completion of 3 years. But, you will not get any bonus if you pledge your policy for a loan before completion of 5 years.

The proportionate bonus on the reduced sum assured amount is accumulated if the policy is assigned for a loan after 5 years.

Surrender Policy

You can surrender the policy after completion of 3 years. But, you will not get any bonus if you surrender your policy before completion of 5 years.

The proportionate bonus on the reduced sum assured amount is paid if the policy is surrendered after 5 years.