Comparison Between Postal Life Insurance vs LIC Which is Better?

Life insurance is a contract that promises an amount of payment to the person or his nominee after him. Providing financial security to your loved ones in your absence by insuring your life is important but how to decide among various life insurance policies available in the market- which one is better? In this article we are making your choice 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 just like other life insurance companies but it is managed by the post office. Postal life insurance scheme was started by the government of India for the benefit of postal employees. By the time it has extended its policies, it now covers employees of Central & State Governments, Defence, Banks, Educational Institutions,professionals, etc.

Comparison between LIC and postal life insurance policy

Eligibility-

PLI is offered to employees of central and state government,educational institution, local bodies, defence etc. whereas LIC provides policies for each and every citizen of India.

Bonus-
PLI gives 7 % or more as a bonus to the insurer or its beneficiary while LIC provides rate of interest upto 4-5 %

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

Premium -

PLI's premium is very low whereas LIC premium is much higher than PLI

Buying the policy-

Postal life insurance policy can be purchased from the post office
Policies of LIC can be brought easily through agents, online and even from the company.

Age limit-

In PLI the age limit should not exceed 55 years whereas the maximum age limit for LIC policies is 75 years.

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