Recently I got a mail from one of my reader about a comparison between postal life insurance vs LIC policy. He was asking which one is the best choice for investment : a postal life insurance or investing in a LIC endowment plan? In this article we will discuss about the facts whether it is good to invest in any of these 2 products or in case you have a choice which one is the best investment option. Off course you should know first whether you are eligible to invest in any of them. Why I said this because, everyone can’t access postal life insurance, whereas anyone can buy a LIC policy.
Postal life insurance vs LIC policy: Which one is best
Postal life insurance is nothing but another life insurance policy launched by postal department of India. Similarly LIC policies are launched by LIC of India. The common factor behind both these 2 insurance companies are they are backed by Govt of India. So the popularity among people increased.
Let’s find out the simple differences between these 2 policies.
Eligibility: You can buy a postal insurance if you are an employee of the Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, officers and staff of the Defense services and Para-Military forces. But anyone can by LIC policy.
Premium & Bonus Rates: If you compare both the policies you will find in case of postal insurance the premium rate is less and also bonus rate is high comparatively. Where LIC offer a bonus rate of 4% approx, Postal Insurance offer around 7%.
You will find couple of other differences between them like premium payment options, various plans offer, age limit, maximum sum assured value etc. But the point here is which is beneficial to buy among postal life insurance and LIC policy.
Which One to buy – Postal Life Insurance or LIC Policy
I think the first thing is whether you are eligible to buy a postal insurance or not. And the 2nd thing is why you are planning to buy an insurance policy when you are planning to invest? You should always understand the difference between investment & insurance. Any kind of insurance cum investment plans will lose their crisp in long term as inflation will hit their return.
But anyway, if you still want to invest in any one of them, I think its better to go with postal insurance as it has better data when compared with LIC of India policies. Rest is up to your own decision.