Postal Life Insurance (PLI) Calculator

Endowment Assurance in Postal Life Insurance is a government-backed life insurance policy that provides both maturity benefits and death benefits. It guarantees a lump-sum payout — including the sum assured and accrued bonuses — whether the policyholder survives the term or dies during it.

The Endowment Assurance policy also known as the Santosh policy is a savings-cum-life insurance plan that provides both life cover and guaranteed maturity benefits.

This policy ensures that:

• If the insured person passes away during the policy term, the sum assured plus accrued bonuses is paid to the assignee, nominee or legal heir.
• If the policyholder survives the full term, they receive the sum assured plus accumulated bonuses as a lump-sum maturity payout.

The Endowment Assurance contract is made between an eligible individual and the Department of Posts (India Post).

The PLI Santosh (Endowment Assurance) policy serves multiple financial objectives for the policyholder. These include:

• Financial protection to the insured person’s family in case of death.
• Long-term savings with assured returns for the policyholder if they survive the term.
• A low-risk investment option with guaranteed returns backed by the Government of India.

You can use the PLI Calculator for the Endowment Assurance (Santosh) policy in just a few easy steps:

• 1. Select Policy Option – Choose Endowment Assurance (Santosh) from the available policy types.
• 2. Enter Your Date of Birth - Provide your date of birth in DD/MM/YYYY format. This will be used to calculate your entry age.
• 3. Choose Maturity Age - Enter the age at which you want the policy to mature. This defines your policy term.
• 4. Enter Sum Assured (₹) - Specify the guaranteed amount of insurance receivable as death benefit and maturity benefit. This is the base insurance amount, excluding bonuses.
• 5. Select Premium Frequency - Choose how often you want to pay your premiums: Monthly, Quarterly, Half-Yearly, or Yearly.
• 6. Click “Calculate” - Once you’ve filled in all inputs, click the “Calculate” button to generate the results.

In calculation results, you’ll see a complete breakdown of your policy details:

• Entry Age – Applicant's age on next birthday.
• Maturity Age – Applicant's age when policy will end and payout is released.
• Policy Term (in years) – Length of time between entry age and maturity age, for which life insurance policy remains active and provides insurance coverage to the policyholder.
• Sum Assured – Minimum guaranteed amount of insurance payout excluding bonuses.
• Maturity Date – The date on which life insurance policy will mature and maturity benefit payout is released.

• Total number of premium installments.
• Payment frequency.
• Base premium amount (before rebate and GST)

• Rebate per installment – The monthly discounted amount based on sum assured applying on each premium payment.
• Total rebate amount – Total amount of rebate applied on total premium payment.
• Premium after rebate – Premium amount of each instalment after applying rebates.

• No GST on premium from 22 September 2025, (Old rate - GST per premium installment for First Year @ 4.5% (CGST @ 2.25% + SGST @ 2.25%) and from Second year onward @ 2.25% (CGST @ 1.125% + SGST @ 1.125%))

• Premium per installment (For Year 1)
• Premium per installment (from Year 2 onward)
• Total premium payable over full term

• Regular Bonus: ₹52 per ₹1,000 sum assured/year
• Terminal Bonus: ₹20 per ₹10,000 sum assured (capped at ₹1,000)
• Total bonus accrued over the policy term

• Total Maturity Amount as Sum Assured + Accrued Bonus.

• Returns on Investment as Net gain as difference between receivable Maturity Value and Total Premium Paid.

You will also see two charts for better visualization of policy report:

• Sum Assured + Bonus Chart - It shows the base sum assured and the bonus portion that contributes to the maturity value.
• Total Premium vs. Net Gain Chart - It compares total premiums paid vs. maturity amount received, highlighting the net financial gain.

• Click "Copy Summary" to copy the key results.
• Click "Download PDF" to save the full policy projection for future use or sharing.

You can modify Maturity Age, Sum Assured and/or Premium Frequency to instantly test how these changes impact Premiums, Rebates, Bonus amount, Policy term, Maturity value and Total returns. This helps you make data-driven decisions to choose the best policy configuration based on both affordability and long-term benefit.

Several key factors influence the performance and projected results of a Postal Life Insurance (PLI) policy. Your selected configuration — including entry age, maturity age, sum assured, policy term, and premium frequency — directly determines outcomes such as premium amount, maturity value, bonus accumulation, rebates, and overall returns. Below is a detailed breakdown of how each factor impacts policy results:

• Premium amount increases as the policy term decreases and vice-versa (for the same sum assured amount).
• Premium amount increases with higher entry age and decreases with a lower entry age.
• Premium amount increases as sum assured increases and vice-versa.
• Premium amount decreases as rebates increase and vice-versa.
• Total Premium amount decreases with longer premium payment frequency — yearly payment frequency results in lowest total premium amount and monthly payment frequency results in highest total premium amount.
• Premium amount per-installment increases with longer payment frequency — monthly payment frequency results in lowest premium amount per-installment and yearly payment frequency results in highest premium amount per-installment.

• Maturity value increases as sum assured increases and vice-versa.
• Maturity value increases as bonus accumulation increases and vice-versa.
• Maturity value increases as poliy term increases and vice-versa.

• Total bonus accumulation increases as sum assured increases and vice-versa. As bonus is calculated per ₹1,000/- of sum assured.
• Total bonus accumulation increases as policy term increases and vice-versa. As bonus accumulates yearly.
• Bonus starts accumulating once the policy exceeds the minimum qualifying term (i.e. 5 years).
• The bonus rate remains constant throughout the policy once applicable.
• Bonus rate varies by policy type (e.g., ₹52 per ₹1,000 sum assured for Endowment, ₹76 for Whole Life, etc.).

• Rebate amount increases as the sum assured increases and vice-versa. As the rebate of ₹1 per ₹20,000/- sum assured applies every month.
• Total Rebate amount increases as the spolicy term increases and vice-versa.

• Total number of premium installments increases as poliy term increases and vice-versa.
• Total number of premium installments increases with shorter premium frequency. The total number of monthly installments is the highest and total number of yearly installments is the lowest.

• Policy term increases as entry age decreases and maturity age increases. For the same entry age, a higher maturity age results in a longer term and for the same maturity age, an earlier entry age results in a longer term.

• Net returns increase as maturity value increases and vice-versa.
• Net returns increase as bonus accumulation increases and vice-versa.
• Net returns increase as total premium amount decreases and vice-versa.
• Net returns increase as policy term increases and vice-versa.

In general, a lower entry age and a longer policy term for a given sum assured result in lower total premium amount, higher bonus accumulation, higher maturity value, and therefore greater net gains. Increasing the sum assured and opting for longer premium frequency further reduces total premium amount and increases net returns.

Below are the key features of the Endowment Assurance policy (Santosh) under Postal Life Insurance :

• If the policyholder passes away during the policy term, the sum assured + accrued bonuses are paid to the nominee, assignee, or legal heir as a death benefit.
• If the policyholder survives the full term, they receive the sum assured + accrued bonuses as a lump-sum maturity benefit.

• Entry Age: 19 to 55 years
• Maturity Age Options: 35, 40, 45, 50, 55, 58, or 60 years
• Minimum Policy Term: 5 years
• Policy can be surrendered after 3 years (with conditions)

• Minimum Sum Assured: ₹20,000/-
• Maximum Sum Assured: ₹50,00,000/-
• Sum assured must be in multiples of ₹10,000 (e.g., ₹50,000 / ₹1,20,000)

• Regular Bonus Rate: ₹52 per ₹1,000/- sum assured per policy year
• Terminal Bonus: ₹20 per ₹10,000 sum assured (up to ₹1,000/- max). Applicable only if the policy term is 20 years or more.
• No bonus is paid if the policy is surrendered before 5 years.
• Proportionate bonus applies for surrender after 5 years.

• Rebate of ₹1 per month for every ₹20,000 sum assured.
• 1% rebate on advance premium payment of 6 months.
• 2% rebate on advance premium payment of 12 months.

• Premiums can be paid in monthly, quarterly, half-yearly, or yearly instalments.
• Premiums can also be paid in advance during any time of the policy term.

• Medical examination is mandatory for the policy with sum assured above ₹5 lakhs or proposer with the age above 40 years.

• Policyholders are eligible to apply for loan against acquired surrender value of the life insurance policy, after 3 years of term.
• Loan can be availed up to 90% of the surrender value.
• Interest rate charged against loan is 10% per annum and interest has to be paid half-yearly.

The Postal Life Insurance (PLI) Endowment Assurance policy, also known as the Santosh policy, is provided by India Post — the oldest life insurer of the country — backed by the Government of India.

Here’s why it stands out:

• PLI is operated by India Post, under the Ministry of Communications,
• It is one of the oldest life insurance providers in India,
• Insurance guarantees are backed by the sovereign assurance of the Government of India.

• Santosh Policy provides life cover up to the age of 60 years,
• It offers a lump-sum maturity payout at the end of the term, if the policyholder survives,
• It offers a lump-sum payout if the policyholder dies during the policy term,
• policy accumulates annual bonuses declared by India Post, increasing maturity value year by year and so the growth of financial savings also.

• Santosh Policy provides bonus of ₹52 per ₹1,000/- sum assured annually (as per current rates),
• The policy delivers high maturity value with terms over 10 years, considering premium rates starting as low as ₹21 per ₹1,000/- sum assured annually.

• The policy allows maturity age up to 60 years, making it suitable for retirement planning,
• It provides flexible premium payment options (monthly, quarterly, half-yearly, yearly).

• Premiums qualify for tax deductions under Section 80C
• Maturity benefits are tax-exempt under Section 10(10D) (as per prevailing laws)

In essense, the PLI Endowment Assurance policy is not just a secure life insurance plan — it is also a low-risk, long-term savings and investment option, ideal for those seeking Guaranteed returns, Government security, Tax-saving benefits and Financial planning for retirement or future milestones.

If Ravi, at the age of 25, purchases Santosh policy with a sum assured of ₹10,00,000. Depending on the maturity age selection of 50, 55, or 60 years — how monthly premium, total investment, maturity value and returns change is explained below.

If Ravi chooses to mature the policy at age 50, his monthly premium (excluding GST) will be approximately ₹3,200, and over the full policy term, his total premium payment will be around ₹9.79 lakhs. At maturity, he will receive a total payout of ₹23.01 lakhs, which includes the sum assured plus accumulated bonuses — giving him a net financial gain of approximately ₹13.21 lakhs, or a 135% return over his investment.

If Ravi chooses maturity age of 55, his monthly premium reduces to ₹2,600, and the total premium he pays over time also reduces to about ₹9.49 lakhs. Yet, his maturity value increases to ₹25.61 lakhs, giving him a net return of ₹16.11 lakhs, which translates to 170% return on investment.

If Ravi selects maturity age of age 60, his monthly premium drops further to just ₹2,200, and he ends up paying a total premium of approximately ₹9.32 lakhs across the term. The total payout at maturity will be ₹28.21 lakhs, resulting in a net gain of ₹18.88 lakhs — an impressive 203% return on investment.

Below is the table with figures illustrating the above scenario.

This scenario shows how choosing a longer policy term in the Santosh policy not only reduces your monthly financial burden, but also maximizes your maturity benefit and overall returns — all while maintaining life cover for the entire duration.

The following individuals are eligible to purchase the Santosh policy:

• Employees of the Central Government and State Governments
• Employees of Public Sector Undertakings (PSUs)
• Staff in Railways, Telecom, Defence, and Para-Military Forces
• Personnel in local bodies and autonomous government institutions
• Employees of Nationalized Banks, State Bank of India and its subsidiaries
• Staff in government-notified financial institutions
• Employees of government-aided or recognized private educational institutions
• Teaching and non-teaching staff of schools/colleges affiliated to CBSE, ICSE, State Boards, Open Schools or Accredited institutions (NAAC, AICTE, MCI, etc.)
• Staff of autonomous bodies, research councils, and recognized universities
• Professionals such as Doctors, Engineers, Chartered Accountants, Company Secretaries, MBAs, Lawyers, Management Consultants, Bankers, Architects, etc
• Employees of companies listed on the NSE or BSE
• Contract-based employees (where contract is renewable)
• Members and employees of government-registered cooperatives
• Members and employees of registered cooperative societies funded partly or fully by Central/State Governments, RBI, NABARD, Nationalized Banks
• Employees of recognized research institutions, deemed universities, and autonomous bodies

Apart from this regarding educational qualification, there is no minimum educational qualification required to purchase the PLI Santosh policy. Eligibility is primarily based on your employment type.

During the online or offline application process, you will be asked to select your occupation and educational qualification based on standard categories used by India Post.

• Central Government
• State Government
• PSU
• Bank
• Defence
• Para-Military Force
• Railway
• Telecom
• Professionals
• BSE/NSE Listed Companies
• Other

• Illiterate
• Primary Education
• Middle Class
• High School
• Senior Secondary Education
• Diploma
• Graduate
• Post Graduate
• Other

The following documents are required to issue a PLI Endowment Assurance (Santosh) policy. These help establish the applicant’s identity, eligibility, health status, and official verification.

1. Proof of Age – Any valid government-issued document showing date of birth (e.g., Aadhaar card, birth certificate, school leaving certificate)
2. Proof of Address – Valid address proof such as Aadhaar card, voter ID, utility bill, or passport
3. Identity Proof – PAN card, Aadhaar card, voter ID, driving license, or any government-recognized photo ID
4. Declaration of Medical Examiner – Medical report or fitness certificate issued by a government-authorized medical examiner (especially required for high sum assured or older age groups)
5. Certificate by Immediate Supervisor – For salaried individuals in eligible organizations, this certificate confirms employment details and designation
6. Certificate by DO/FO (PLI) or Authorized Agent – Signed verification by Departmental Officer (DO), Field Officer (FO), or registered PLI agent
7. Declaration by Proponent – A self-declaration by the applicant regarding their health, lifestyle habits, and policy understanding
8. Declaration by Spouse (if applicable) – In certain cases (like financial declarations), the spouse’s consent or declaration may be required

The PLI Endowment Assurance (Santosh) calculator uses official POLI rules to compute key policy outcomes based on your input values: date of birth, maturity age, sum assured, and premium frequency.

Here’s a simplified breakdown of the core calculation logic:

• Policy Term (in years) = Maturity Age – Entry Age

(Policy Term is the total number of years between entry age and the chosen maturity age.)

• Total Premium Installments = Policy Term × Installments per Year

(Based on your selected premium frequency: Monthly = 12, Quarterly = 4, Half-Yearly = 2 and Yearly = 1)

• Base Premium (per installment) = Premium Rate for Santosh policy × Sum Assured

(Calculated using premium rate slabs defined in POLI rules for Santosh policy, based on entry age and maturity age.)

• Rebate per premium = (Sum Assured ÷ 20,000)
• Total Rebate = (Sum Assured ÷ 20,000) × Policy Term × 12 (months)

(Rebate of ₹1/month is given for every ₹20,000 of sum assured, applied monthly across the policy duration. All rates of rebate are applied automatically in the calculator as per official Post Office Life Insurance (POLI) rules for Santosh policy.)

• GST on each premium payment = Premium After Rebate × GST Rate

No GST on premium from 22 September 2025, (Old rate, First Year GST Rate = 4.5% & Renewal GST Rate from second year onward = 2.25%)

• Total GST = GST per Premium × Total Installments

(The GST for the first year and rest of term are calculated separately. Total GST amount includes sum of GST on premiums for the first year and for the rest of the term. All GST rates are applied automatically in the calculator as per official Postal Life Insurance (POLI) rules.)

• Total Premium = (Base Premium × Total Installments) – Total Rebate + Total GST

(The total amount you’ll pay over the policy term, with deducted rebates and added GST.)

• Bonus = (Sum Assured × Bonus Rate × Policy Term) / 1000

(Bonus rate = ₹52 per ₹1,000 sum assured per year)

(In bonus calculation, if policyholder passes away then policy term will be calculated up to the date of death from entry age. If policyholder survives for full term then the policy term will be taken up to maturity age from entry age.)

• Terminal Bonus (one time payment) = (Sum Assured × Terminal Bonus Rate) / 10000; maximum ₹1,000/-

(Terminal bonus rate = ₹20 per ₹10,000 sum assured, only for the policy term over 20 years)

(All bonus rates are applied automatically in the calculator as per official Postal Life Insurance (POLI) rules.)

• Total Bonus = Bonus (Annual) + Terminal Bonus (One time)

(Total bonus is the sum of bonus accrued annualy and applicable terminal bonus.)

• Death benefit = Sum Assured + Total Bonus accrued till the date of death

(Death benefit is the amount the assignee, nominee or lega heir receives if policyholder dies during the term.)

• Maturity Value = Sum Assured + Total Bonus

(This is the amount policyholder receives at the end of the term if the policy is not surrendered and the policyholder survives for full term.)

• Net Gain = Maturity Value – Total Premium Paid

(Net gain Indicates the return on your investment in the policy.)