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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 TypesPLI 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.
EligibilityAll 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 plansPLI 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 assuredPLI offers a maximum sum assured up to Rs 50 LakhsThere is no Limitation to the assured sum. The policyholder can decide on the coverage according to his needs.
Coverage customizationPLI 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
PremiumThe 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 modePremium 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

  • PLI Suvidha (convertible whole Life plan)
  • PLI Suraksha

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

  • LIC Anmol Jeevan
  • LIC  Jeevan Amar

Endowment insurance plan

  • LIC Single Premium Endowment Plan
  • LIC Jeevan Rakshak
  • LIC Limited Premium Endowment Plan
  • LIC Jeevan Lakshya
  • LIC Jeevan Pragati
  • LIC Jeevan Labh
  • LIC Aadhar Shila
  • LIC Aadhar Stambh

Unit linked plan

LIC New Endowment Plan

Pension plans

  •  LIC New Jeevan Nidhi
  • Pradhan Mantri Vaya Vandana Yojana

Money back insurance plan

  • LIC New Money Back Plan – 20 years
  • LIC New Money Back Plan – 25 years
  • LIC New Children’s Money Back Plan
  • LIC Jeevan Tarun
  • LIC Bima Shree
  • LIC Jeevan Shiromani

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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