Beruflich Dokumente
Kultur Dokumente
Higher of (10
* Annualized
Premium) or
Min: 90 Min: 18 Min: 10 (105% of the
LIC’s New days, years, years, total
Endowment Max: 50 Max: 60 Max: 20 premiums Linked Accidental
Plus Plan years years years paid) Death Benefit Rider
Postal Life Insurance Vs LIC-Which
is best?
Do you know your Post Office also offers Life Insurance? Even if you know then there is a
huge confusion among buyers like whether to buy with the Post Office or with LIC, because
the Government of India backs both. Hence, let us see which is best for whom.
PLI (Postal Life Insurance) is exactly like any Life Insurance company, for example
LIC or ICICI Pru Life Insurance. The only difference is, it is run and managed by Post
Office. PLI currently offers only traditional plans. Therefore, no term insurance or
ULIPs.
This is exactly like LIC’s Whole Life Policy. The nominee will receive the accrued
bonus and sum assured after the death of the policyholder. Minimum age at entry is
19 Yrs and maximum is 55 Yrs. Minimum Sum assured is Rs.20, 000 and maximum
Sum Assured is Rs.10, 00,000.
This is a typical endowment plan where a policyholder gets sum assured along with
bonus if he survive until the maturity period. In case of his death during the policy
period, then his nominee will receive the sum assured along with accrued bonus.
Eligibility criteria are same as that of Whole Life Assurance Policy (Suraksha).
This plan is exactly like Endowment Assurance. The only difference is, if you don’t
convert this policy to Endowment Assurance then it is treated as Whole Life
Assurance plan.
This is typical money back endowment plan, where the maximum sum assured is
restricted to Rs.5, 00,000. In this category, PLI offers two types of plans. One is 15
yrs and other is a 20 yr term.
This plan is uniquely designed for handicapped persons. Based on the condition of
handicap, premium raised or increased. Rest of plan features are exactly like the
others.
7) Children Policy
PLI started to offer child policy from 2006. Few features are listed below.
Eligibility-To buy PLI you must be employee of the Central and State
Governments, Central and State Public Sector Undertakings, Universities,
Government aided Educational institutions, Nationalized Banks, Local bodies,
etc. PLI also extends the facility of insurance to the officers and staff of the
Defense services and Para-Military forces. Where as LIC offers it’s plans to all
citizens of India. So when it comes to flexibility to buy then LIC holds edge
than PLI.
Plans offered-There is no such difference. Because LIC and PLI mostly
dependent on traditional endowment type of Life Insurance Plans. But along
with that LIC offers term insurance (recently LIC launched online term
insurance), which is not at all touched by PLI.
Premium Rate-When compare to LIC or any private insurers, PLI offers
cheap premium. So this is a most advantage of buying endowment plans with
PLI than with LIC.
Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas
currently LIC offers a bonus rate of around 4% to 5%.
Where to buy-In case of PLI, you have to visit to the Post Office where these
schemes are offered. Whereas in case of LIC, you will easily get agents. These
agents can come to your doorstep and offer the service. Along with that
recently LIC launched an online buying also (restricted to online term plan
and pension plan). Therefore, in case of buying LIC offers more flexibility than
PLI.
Age Limit-PLI offers insurance to the age group of 19-55 yrs. Where as in LIC
you can get the insurance coverage up to 75 yrs (not in all policies).
Maximum Sum Assured-PLI offers you the maximum sum assured of
Rs.50 Lakh. Whereas, LIC offers an unlimited maximum sum assured.
Premium Payment-In case of LIC, you can pay it in branch, collection
points or through online. Recently a reader updated that Post Office also
offering online premium payment facility. But I have not checked this. Hence,
better you cross check Postal Officials and proceed.
Tax benefits-Both PLI and LIC offer same tax benefit for deduction under
Sec.80C.
Considering all these features and differentiation between PLI and LIC, I feel PLI is
still in olden days. Because it offers less insurance coverage, entry is restricted to only
few, service issues, no term insurance and age limit. Whereas only two positive
points that attract you towards PLI are lesser premium and higher bonus.
Even though PLI offers you higher return and lower premium compare to LIC and
other private insurers, the returns in the long run may erode drastically if you
consider the inflation. Along with that, you will be under insured due to restricted
maximum insurance limit. Post Offices still not customer friendly. So you may face
service issues and claim settlement issues.
Overall, I found PLI with limited positive points and unlimited negative points. The
decision is rest with you