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Post Office Life Insurance vs LIC (Understand the key differences)
When you think about a government-backed life insurance scheme for yourself, LIC and Post Office Life Insurance schemes stand out immediately.
Both LIC and PLI offer a wide range of insurance products to choose from. You may be wondering if you should opt for a LIC policy or a PLI policy. This article will give you clarity by highlighting the benefits, features, and distinctions between LIC and PLI policies. So, let us begin.
Lets us check out a few investigative differences between Post office Life insurance vs LIC schemes
Differences between Post Office Life Insurance vs LIC schemes
| Postal Life Insurance (PLI) | Life Insurance Corporation of India (LIC) | |
|---|---|---|
| Plan Types | PLI offers conventional life insurance schemes that provide assured sum + accrued bonus. | LIC offers all kinds of insurance products and schemes, including market linked investment plans as well as retirement oriented plans and schemes. |
| Eligibility | All Indians are eligible for their plans. | Provides policies to each and every citizen of India. |
| Maximum age limit for people opting for PLI’s policies is 55 years. | Maximum age limit for people opting for LIC policies is 75 years. | |
| Age limit | ||
| Health plans | PLI does not provide health insurance plans. | LIC offers various health insurance plans to its customers. |
| Plans such as LIC’s Cancer cover and Jeevan Arogya are just 2 of LIC’s many health plans. | ||
| Sum assured | PLI offers a maximum sum assured up to Rs 50 Lakhs | There is no Limitation to the assured sum. The policyholder can decide on the coverage according to his needs. |
| Coverage customization | PLI do not have additional ridders that can customize a person’s insurance plan. | LIC offers a vast range of optional add-on riders that can help you expand your coverage accordingly |
| Lic’s New Critical Illness Rider. | ||
| LIC’s Accidental Benefit Rider. | ||
| LIC’s Accidental Death and Disability | ||
| LIC’s New Term Assurance Rider | ||
| Bonus | Available | Available |
| Premium | The premium cost of PLI’s policies are lower when compared to LIC. | The premium cost of LIC is slightly higher compared to PLI. |
| You also get a discount of 2% if you pay advance premium of 12 months | ||
| How to avail policy? | You can only purchase the policies by visiting the post office branch directly. | LIC policies can be bought by visiting their branches, online as well as through agents. |
| Premium payment mode | Premium payment can be done by visiting the Postal Office branch only. | Premium payment can be done through visiting s LIC branch, LIC collection centers, and even online on their website. |
Now, let us quickly dive into the plans and schemes offered by Postal Life Insurance (PLI) And Life Corporation of India (LIC).
Plans offered by PLI
Type of plan | Name of the plan |
Whole life insurance plan |
|
Money back insurance plan | PLI Sumangal |
Endowment insurance plan | PLI Santosh |
Joint life insurance plan | PLI Yugal Suraksha |
Child insurance plan | PLI Bal Jeevan Bima |
Plans offered by LIC
Type of plan | Name of the plan |
Whole insurance plan | LIC Jeevan Umang |
Term life insurance plan |
|
Endowment insurance plan |
|
Unit linked plan | LIC New Endowment Plan |
Pension plans |
|
Money back insurance plan |
|
What should you opt for?
The plan that would be best suitable for you would ultimately depend on your requirements and needs. However, we could give you some suggestions.
- If you are eligible for Postal Life Insurance Plan and wish to opt for good coverage at nominal rates, you can opt for a PLI policy.
- If you are interested in investing in a unit-linked plan, retirement, or a term insurance plan then LIC may be a prudent choice.
- Further, If you want a policy that provides the highest coverage, you may consider a LIC policy, as the maximum coverage via PLI is Rs.50 Lakhs.
- If you want a health plan, LIC also has you covered.
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