Gram Sumangal Rural Postal Life Insurance Scheme

Gram Sumanagal Rural Postal Life Insurance Scheme is an endowment scheme which provides people living in rural areas to receive cashbacks on a regular basis along with insurance cover. There are two types of plans under this scheme.

The Gram Sumangal Rural Postal Life Insurance Scheme, also referred to as the Anticipated Endowment Assurance is a money-back scheme. The policy is ideal for individuals who have periodic requirements of cash for their short-term financial liabilities. This scheme is targeted to provide insurance cover to the people belonging to rural areas. There are two types of plan under this scheme – 15 years term and 20 years term.

Eligibility Conditions for Gram Sumangal

Minimum entry age19 years
Maximum entry age45 years – 15 year term 40 years – 20 year term
Eligible employeesEmployees of:
  • State Government
  • Reserve Bank of India
  • Central Government
  • Local Bodies
  • Defence Services
  • Public Sector Undertakings
  • Para Military Forces
  • Government-aided Educational institutions
  • All scheduled Commercial banks
  • Autonomous bodies
  • Financial institutions
  • Nationalized banks
  • Extra departmental agents in Department of Posts

Key Features of Gram Sumangal

The important features of the Anticipated Endowment Assurance or the Gram Sumangal scheme are given in the table below:

Plan typeAnticipated Endowment Plan
Plan basisIndividual
Premium paying termsMonthly
Mode of paymentThrough the premium receipt book or cheque.
Policy term
  • 15 year term policy
  • 20 year term policy
Funded By100% centrally funded
MedicalsSum assured exceeding Rs.25,000 requires applicants to undergo medical examination by an authority prescribed.
Loan facilityNot available. Loan may be granted against the security of the policy, provided the policy has completed 3 years.
Assignment facilityAssignment facility is available. Policy can be assigned to any financial institution for the purpose of loan.
  • No alteration is allowed on the Anticipated Endowment Assurance plan.
  • May convert to other Endowment Assurance plan.
Policy revival
  • If the policy is in full force for 3 years and the premium has not been paid for six months or if the policy has been in full force for more than 3 years and the premiums have not been paid for 12 months, the policy gets lapsed.
  • Lapsed policy can be revived at any time within a year of maturity.
  • It is not allowed more than once in the policy term.
NominationNominations are accepted in this policy.
Minimum sum assuredRs.10,000
Maximum sum assuredRs.5,00,000
Grace periodIn case of missed premiums, an individual will have to a minimum of Rs.1 per 100 of sum assured amount as fine. The individual can make the payment in the succeeding month.
Surrender valueNo surrender value granted under this scheme.

Benefits of Gram Sumangal

The following are the benefits and advantages of the Gram Sumangal rural postal life insurance scheme:

  • Survival Benefit: The survival benefit under the Gram Sumangal scheme is cleared in periodic payments. The following table indicates the survival benefit payable under the policy scheme:
15 year term Gram Sumangal20 year term Gram SumangalSurvival benefit
6 years completion8 years completion20% of sum assured
9 years completion12 years completion20% of sum assured
12 years completion16 years completion20% of sum assured
15 years completion20 years completion40% of sum assured
  • Death Benefit: In case of the death of the assured individual during the term under the Gram Sumangal, the total sum assured and the accumulated bonus is payable to the nominee without any adjustments from the already made periodical payments towards survival benefit.
  • Maturity Benefit: On maturity of the policy term, the insured receives the sum assured along with the earned bonuses, if any.
  • The assured is covered from the day the insurance scheme proposal is accepted.

How Gram Sumangal Works

The Gram Sumangal or the Anticipated Endowment Assurance works in two kinds of plans:

Plan 1: 15 year term policy

Plan 2: 20 year term policy

The sum assured under these plans are paid in four installments throughout the term. In case the assured meets with death, the nominee receives the sum assured with the accumulated bonus amount, if any. The payment does not involve any adjustment from the previously made survival benefits payments. In case the premium is ceased prior to its maturity date, the reduced sum assured is granted, only if there has been no missed premiums for at least three years, only at the end of the policy’s term date.


No riders available under this policy scheme.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017