|
Age
at Entry-35 Years Maturity
Age-50 Years Policy
Term - 15 Years |
LIC
Endowment Plan |
PLI
Endowment Plan |
|
Sum Assured (A) |
10,00,000 |
10,00,000 |
|
Yearly Premium (B) |
68,511 |
64,600 |
|
Total Premium ( C ) = (B*15 years) |
10,27,665 |
9,69,000 |
|
Bonus Rate (D) |
38/1000 |
52/1000 |
|
Bonus Amount ( E ) |
5,70,000 |
7,80,000 |
|
Maturity (F) = (A+E) |
15,70,000 |
17,80,000 |
|
Total Benefit (G)= (F-C) |
5,42,335 |
8,11,000 |
|
Difference Amount |
|
+2,68,665 |
The question of which option is better entirely rests on your requirements. If you are looking to invest in a traditional endowment plan, PLI is a better alternative as it offers the plan at a very low premium rate. Moreover, endowment plans offered by PLI earn higher bonus rates compared to the plans offered by LIC. So, for traditional endowment plans, PLI is a good choice if you are satisfied with the coverage of up to INR 50 lakhs.
If, on the other hand, you are looking to invest in ULIPs or term insurance plans, LIC is the only solution as these plans are not offered by PLI. Given the fact that a term insurance policy is a must, you should choose LIC for buying a suitable term insurance plan. Moreover, if you want to plan for your retirement or need a health insurance plan, you have to choose LIC since PLI does not offer these plans. Lastly, LIC scores over PLI in terms of its coverage level. If a higher coverage level is on your mind you should go with LIC as PLI limits the coverage available under its plans.
So, assess your insurance needs and make a choice. Both options allow you different types of life insurance plans and the choice of the better option depends entirely on what you require.
FAQs:
- Can a loan be taken in a PLI policy?
Yes, PLI plans allow the facility of loans. Loans are available if the policy has run for a minimum period of 3 years and has acquired a minimum surrender value of INR 1000.
- Are there tax benefits in LIC and PLI policies?
Yes, both LIC and PLI policies allow tax benefits. The premiums paid are allowed as a deduction under Section 80C up to INR 1.5 lakhs. The benefits received from the policy are also tax-free in your hands under Section 10 (10D).
- Can I buy insurance policies from both LIC and PLI?
Yes, you can buy multiple insurance policies from both LIC and PLI.
