Comparing postal life insurance and LIC, which is better?

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oi-Ajeeta Bhatia

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Life insurance is a contract that promises an amount of payment to the person or his agent after him. Providing financial security to your loved ones in your absence by insuring your life is important, but how do you decide which of the various life insurance policies available on the market is the best? In this article, we make your choice a little easier by comparing two life insurance policies – Postal Life Insurance Policy vs LIC

What is a Postal life insurance policy?

Postal life insurance is like other life insurance companies but it is run by the post office. The Postal Life Insurance Scheme was started by the Government of India for the benefit of postal workers. As it expanded its policies, it now covers employees of central and state governments, defence, banks, educational institutions, professionals, and more.

Comparison between LIC and postal life insurance policy

Eligibility-

The PLI is offered to employees of central and state government, educational institutions, local bodies, defense, etc., while the LIC offers policies for every Indian citizen.

Prime-
PLI gives 7% or more in bonus to the insurer or its beneficiary while LIC offers an interest rate of up to 4-5%

Sum insured-
50 lakh is the maximum sum insured by postal life insurance policy, but in case of LIC, there is no such limit.

Comparing postal life insurance and LIC, which is better?

Prime

The premium of PLI is very low while the premium of LIC is much higher than PLI

Buy Policy-

The postal life insurance policy can be purchased from the post office
LIC policies can be made easily through agents, online and even from within the company.

Age limit-

In PLI, the age limit must not exceed 55 years while the maximum age limit for LIC policies is 75 years.

Here we have provided various key comparisons that would help you easily choose between the two policies. PIL is a better option, if you are eligible compared to LIC.

Article first published: Wednesday, October 26, 2022, 10:01 p.m. [IST]

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