PLI Endowment Assurance (Santosh)

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

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

What is EA?

EA stands for Endowment Assurance policy. It is also known as Santosh.

It is an investment cum life insurance policy.

It is a life insurance policy where 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.

How does EA Policy Work?

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

• Choose one of the policy terms available for your age

• 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 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

• 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

You can purchase this insurance policy between 19 years and 55 years of your age.

Policy Term

This insurance policy provides flexible term periods.

You can choose a policy term period from 5 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

The current bonus rate is Rs. 52 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.

Maturity Benefit

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.

Death Benefit

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.

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 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.