5 min read
Updated on Aug 11, 2023
In India, we have several types of insurance, and it often becomes difficult to analyse which one to buy and how they are different from each other. One can also choose a government-aided life insurance plan from LIC or post offices. But who is eligible to buy these policies, and what are the main features of a LIC and PLI plan? What is the PLI eligibility, and what are its interest rates, as compared to a LIC plan?
To get the right answers to all such queries and much more, we suggest you go through a detailed PLI vs. LIC in this post. We will also talk about the different plans and features of LIC and PLI plans, so stay tuned!
Launched in 1884, PLI is the oldest insurance option available to the government officials or those working in organizations associated with the government. The main benefit of buying Postal Life Insurance is that it offers high returns on minimum premiums. The main disadvantage of this policy is, as we mentioned earlier, that it is not available for everyone.
Listed below are some advantages of buying a PLI:
Life Insurance plans from Life Insurance Corporation, LIC Ltd. are available for all Indian citizens and even NRIs. They offer high protection but at comparatively high premium rates. There are a plethora of plans offered by LIC for families and individuals.
Listed below are some advantages of buying a LIC plan:
Have a look at a one-to-one PLI vs. LIC for a better understanding to make a right decision for yourself:
|Types of Plans Offered||Only traditional life insurance plans are offered. No market-linked, term insurance, or retirement plans are offered||All types of life insurance plans are offered, be it market-linked or traditional plans|
|Eligibility to Buy||Available only to employees of local bodies, Government organizations, educational institutions, defence and some listed companies||Any Indian citizen and even an NRI can buy an LIC plan|
|Option to Buy||Can be bought only from a post office||Can be bought from the company, through agents, and online|
|Maximum Age to Apply||Up to 55 years||Up to 75 years|
|Premium Rate||Low and very affordable premiums. One can get a rebate of 2% by paying 12 months premium in advance||Higher premium rates as compared to PLI|
|Premium Payment||Can be paid at the nearest post office branch or online and electronic modes||Can be paid through an LIC branch, collection point, or online mode|
|Coverage Limit||Coverage can’t be extended or customized||Option to grab various optional riders that can be customized|
|Bonus||Very high||Low as compared to PLIs|
Have a look at the different plans offered by PLIs:
|Whole Life Insurance or Suraksha Plan||
|Endowment Insurance or Santosh Plan||
|Joint Life Assurance or Yugal Suraksha Plan||
|Convertible Whole Life Insurance or Suvidha Plan||
|Anticipated Endowment Plan or Sumangal Plan||
Have a look at the different plans offered by LIC:
|Jeevan Amar Plan||
|Jeevan Umang Plan||
|Jeevan Pragati Plan||
|New Jeevan Nidhi Plan||
|New Bima Bachat Plan||
Those who are eligible must opt for a PLI rather than a LIC plan because it gives more returns on less premium and other high bonus benefits. But, if you are not a government employee or are not eligible to buy postal life insurance, research well about the different LIC plans and buy one that suits your needs and offers the best sum assured and maximum benefits.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
There are several PLI schemes, and the best 5 are listed below:
~ Whole Life Assurance or Gram Suraksha
~ Children Policy or Bal Jeevan Bima
~ Endowment Assurance or Gram Santosh
~ 10 Years Rural PLI
~ Anticipated Endowment Assurance or Gram Sumangal
The maturity benefits earned as income from a Postal Life Insurance will be tax-free. However, this tax benefit can be fetched only if the sum assured is 10 times the annual premium paid for the policy.
The maximum limit of the sum assured in a PLI is Rs. 3 Lakhs. If the PLI is for a child, then the maximum limit will be the amount of the sum assured for the parent.
A PLI policyholder can take a short-term loan against the policy at an interest rate of 10% per annum for 6 months. In other words, 10% interest is paid for a PLI policyholder every 6 months.
All the maturity amounts of any LIC policy apart from ULIP issued after April 1st, 2023 with an annual premium of over Rs. 5 Lakh are now taxable. This tax information about the LIC maturity was proposed in the Budget proposal 2023.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Life insurance secures our families against unforeseen incidents, the armed forces protect the country against unseen enemies both within and outside the borders. Army sacrifices.
Life Insurance Corporation (LIC) of India presents a wide array of insurance products and service options to its customers. With millions of policyholders, the query.
India’s leading public sector insurer, LIC, is synonymous with security and trust. LIC has been serving Indian customers for a long time now. With a.
There are many policyholders who apply for policy cancellation just after a year of purchasing the plan. Why is it so? People generally buy insurance.
LIC is a public sector insurer that caters to the common people, including the rural population. LIC offers several cost-effective policies with attractive features and.
“What would happen to my family if I had to leave the world unexpectedly?” This is one question that strikes us all at some point.
Life insurance policies are a kind of security that people buy to protect their family members against the uncertainties of life. However, at times it.
Insurance is a safety net that safeguards against uncertainties in life. One significant aspect of insurance is the rider facility available with the basic policies..
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue