Question
What is postal life insurance scheme? Describe its salient features.
Answer :
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Postal Life Insurance Scheme is a life insurance facility provided by the Government of India through the Department of Posts to offer affordable and secure insurance coverage mainly to government and semi-government employees. Introduced in 1884, it is one of the oldest insurance schemes in the country and was initially meant for postal employees, later extended to employees of central and state governments, defense personnel, public sector undertakings, autonomous bodies, educational institutions, and other notified organizations. The scheme aims to promote social security, savings, and financial stability among salaried individuals by providing risk cover along with long-term savings benefits. One of the most important features of the Postal Life Insurance Scheme is government guarantee. Since it is backed by the Government of India, it offers high credibility, safety, and trust, which is a significant factor in effective financial communication
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