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LIC or Postal Life Insurance Plans : Which is better?

Insurance is necessary for everyone because who does not want to live a protected life. Since different types of insurance plans are available in the markets, it is necessary to evaluate them properly to help choose the right one according to needs. The government of India offers insurance plans through post offices and LIC that aim to satisfy customers’ requirements. However, it is necessary to know the difference between LIC insurance plans and postal life insurance plans. This, in turn, gives ways to pick the right one that caters to a person’s requirements.

What is Postal Life Insurance?

postal life insurance plan offers life insurance coverage for Indian citizens that provides high returns on premiums. The plan is available only for state and central government employees who want to gain more benefits. The maximum sum assured amount covered by the scheme is Rs.50 lakhs. Some of the Best PLI plans available for customers include whole life insurance, endowment insurance, convertible whole life insurance, anticipated endowment plan, and joint-life assurance. However, customers should know the difference between them before investing money. The maximum age limit for a PLI plan is 55 years.

What are the benefits of buying postal life insurance?

  • The insured persons can avail of the tax benefits under sec 80C of income tax acts after buying a plan 
  • People can buy the plan at low premium rates when compared to other insurance products 
  • Policyholders can transfer the plan everywhere in India with ease that will save more time 
  • High bonus percent for policyholders or beneficiaries that will help generate more returns 
  • 1% and 2% discount for policy buyers when they pay the premium amounts in advance for six months and 12 months 
  • A nomination facility is available for policy buyers 
  • Allows policyholders to buy loans from banks during emergencies 
  • Enables a policyholder to change the existing plan to other plans based on certain rules and conditions. 

 

What is a LIC life insurance plan?

Life Insurance Corporation, shortly known as LIC, is a public insurance company that offers a wide range of plans for individuals and families. Anyone can buy them that provide ways to get high protection from problems caused by inflation and other factors. The company specializes in satisfying the requirements of customers with various features. 

Benefits of buying a LIC life insurance policy

  • LIC insurance plans offer coverage for policy buyers up to 75 years 
  • Loan facility for policyholders after 3 years 
  • The minimum sum assured amount is Rs 1.5 lakhs, and there is no maximum sum assured amount 
  • Additional benefits such as coverage for accidental death, critical illnesses, and disabilities 
  • The company has high claim settlement ratios (CSR) when compared to other insurance companies 
  • Allows policyholders to claim insurance amounts in easy steps 
  • Excellent customer support for customers when they want to purchase a policy 

 

Difference Between Postal Life Insurance (PLI) Policy and LIC Life Insurance Policy 

New policy buyers should understand the difference between postal life insurance plans and LIC life insurance plans that will help get more ideas. 

  1. Plans Offered: The post office postal life insurance involves only limited plans to policy buyers. At the same time, LIC offers a wide range of life insurance plans in the markets, allowing them to select the right one accordingly.
  2. Premium Prices: The premium rates of postal life insurance plans are very low when compared to LIC life insurance products. Therefore, those who want to buy endowment plans can select them that will help gain more advantages.
  3. Bonus Rates: Postal life insurance offers 7% or more bonus rates for policyholders allowing them to generate high returns. On the other hand, LIC offers only a bonus of around 4 % to 5%.
  4. Age Limit: The maximum age limit to buy a PLI is 55 years, whereas LIC provides coverage for policy buyers up to 75 years, thereby showing ways to ensure financial stability.
  5. Rider Options: LIC life insurance policies provide rider options such as accidental coverage, critical illness benefit, and disabilities coverage. However, a PLI is a pure life insurance term that doesn’t provide any additional benefits.
  6. Sum Assured: The maximum sum assured by a PLI plan is Rs. 50 lakhs and LIC involves no maximum sum assured amount.

 

How to buy postal life insurance and LIC insurance plan?

Customers should know what postal life insurance scheme and LIC insurance plan from different sources to help make the right decision. They can approach a nearby post office to know the details of insurance plans. Besides that, it is wise to understand the terms and conditions while buying a postal life insurance plan. A policy buyer can choose the postal life insurance calculator to determine the premium rates.

It is possible to buy LIC plans online with huge discounts that will save more money. Not only that, policy buyers can calculate their premium prices with a calculator that gives ways to pick the best one based on the choices. A policy buyer should compare PLI vs LIC benefits before purchasing a plan. 

The post office PLI scheme comes with high-interest rates allowing policyholders to ensure better returns. However, customers should know the eligibility and other things before buying a PLI scheme and LIC insurance plan.

LIC or PLI-which is the best one to buy?

PLI has an upper edge over LIC when it comes to premium rates as they are very low. Also, the scheme is very easy to open for government employees. However, the plan doesn’t suit individuals and families. Although the premium rate of a top LIC policy is high, policyholders can get coverage up to 75 years. Moreover, the policy offers some additional benefits than a PLI scheme. Some LIC plans require medical exams when choosing a policy after 55 years. Therefore, it is wise to compare the pros and cons of LIC insurance policies in advance before buying. LIC is ideal for economically weaker sections when they want to manage financial difficulties in the future. 

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