PLI Convertible Whole Life Assurance (Suvidha)

This page provides all the details you need to know about the Convertible Whole Life Assurance (Suvidha) policy.

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

What is CWLA?

CWLA stands for Convertible Whole Life Assurance policy. It is also known as Suvidha.

It is an investment cum life insurance policy.

It is a life insurance policy and it has the features of both "Whole Life Assurance (Suraksha)" and "Endowment Assurance (Santosh)" policies.

This scheme is suitable for those who are unable to decide between "Whole Life Assurance (Suraksha)" and "Endowment Assurance (Santosh)" policies.

This scheme provides an option of starting with the Whole Life Assurance (Suraksha) policy and then converting it to Endowment Assurance (Santosh) policy after 5 years.

If you don't convert within 6 years of taking the policy, then your policy will be continued as Whole Life Assurance (Suraksha).

If you choose to convert, then your age should not exceed 55 years on the day of conversion.

Converting to EA:

If you choose to convert the policy to Endowment Assurance (Santosh) after 5 years, then

• the maturity amount (sum assured amount plus accumulated bonus amount) will be paid to you when you reach the pre-determined maturity date

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

Not Converting:

If you don't convert your policy, then it'll work like a Whole Life Assurance (Suraksha) policy where

• the maturity amount (sum assured amount plus accumulated bonus amount) will be paid to you when you reach 80 years of age

• In case of your death before the age of 80 years, the sum assured amount and any bonus accumulated till the day of death will be paid to your nominees or legal heirs

Age of Entry

You can purchase this insurance policy between 19 years and 50 years of your age.

Policy Term

This insurance policy provides flexible term periods. 

Converting to EA:

If you decide to convert this policy into Endowment Assurance policy after 5 years, then you can choose a policy term period from 6 years to 39 years depending on your age of entry into the policy.

Not Converting:

If you don't convert this policy, then you'll run it like Whole Life Assurance policy. In this case, you can choose a premium paying term period from 10 years to 41 years depending on your age of entry into the policy.

Sum Assured Amount

Minimum amount - Rs. 20,000

Maximum amount - Rs. 50 Lakhs

Bonus Rate

Converting to EA:

If you choose to convert this policy to Endowment Assurance after 5 years, then the bonus rate of Endowment Assurance policy will be paid.

The current bonus rate is Rs. 52 per Rs. 1,000 Sum Assured per year.

Not Converting:

If you don't convert this policy to Endowment Assurance, then the bonus rate of Whole Life Assurance policy will be paid.

The current bonus rate is Rs. 76 per Rs. 1,000 Sum Assured per year.

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

Maturity Benefit

Converting to EA:

If you survive till the end of the policy term, then you'll receive the maturity amount.

The maturity amount is the total of the sum assured amount and the accumulated bonus.

Not Converting:

If you survive till 80 years of your age, then you'll receive the maturity amount.

The maturity amount is the total of the sum assured amount and the accumulated bonus amount.

Death Benefit

Converting to EA:

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.

Not Converting:

If you die before 80 years of your age, then your nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of your death.

Medical Test

To purchase this policy, whether you need to undergo a medical test or not is based on the sum assured amount.

If the sum assured amount is Rs. 1 Lakh or lesser, then you need not undergo any medical test.

If the sum assured amount is more than Rs. 1 Lakh, then the medical examination is compulsory to prove that you are healthy.

Loan Facility

Loan facility is available in this policy.

You can apply for a loan after completion of 4 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.