Postal Life Insurance Vs Lic Which Is Best

When one thinks of insurance policies by the Indian government, the first organization that comes to mind is Life Corporation of India (LIC). A lot of individuals might not be aware that the Department of Posts also offers life insurance under the name of Postal Life Insurance (PLI).

Table Content

  • Options Confuse People
  • Types of Policies Offered By Postal Life Insurance (PLI)
  • 1. Whole Life Insurance (Suraksha)
  • 2. Endowment Insurance (Santosh)
  • 3. Convertible Whole Life Insurance (Suvidha)
  • 4. Anticipated Endowment Plan (Sumangal)
  • 5. Joint Life Assurance (Yugal Suraksha)
  • Types of Policies Offered By Life Insurance Corporation (LIC)
  • Jeevan Umang Plan 
  • Jeevan Pragati Plan
  • LIC’s Jeevan Amar
  • New Bima Bachat Plan
  • New Jeevan Nidhi Plan
  • Difference Between PLI and LIC
  • Conclusion:
  • Related posts:

Options Confuse People

Well, when we have an option then we suddenly confused about who to go with and if we don’ have an option, we have only a choice then selection becomes are quite easy for us and it makes things clear. But we have the option that it’s good for us and good for also a healthy business, look business make things easy for us and now a day this is what we going through. So, that’s why a healthy business competition makes things easy and products better for their customer, and from the point of view of the customer, it is time to earn with both hands.

In fact, PLI is the oldest insurance service provider that was launched on February 1, 1884. One thing is to be noted that PLI has eligibility criteria under which only government officials or the individuals working in organizations associated with the government can be a part of the scheme.

On the other hand, LIC policies are available to every Indian citizen, thereby making it more popular among the Indian population.

Types of Policies Offered By Postal Life Insurance (PLI)

Postal Life Insurance offers multiple schemes to eligible individuals, with each having its unique features. These schemes include:

1. Whole Life Insurance (Suraksha)

This is the most widespread scheme in which the minimum sum assured is Rs. 20,000, whereas the maximum sum assured is Rs. 10 Lacs. You are eligible for this scheme after the completion of 19 years of your life and the maximum eligible age for this plan is 55 years.

The legal heir, assignee, or nominee receives the assured among and accrued bonus after the death of the insured individual.

2. Endowment Insurance (Santosh)

The qualification criteria for this plan are similar to that of Whole Life Insurance. Just like any other endowment policy, the policyholder receives the sum assured after maturity with the bonus. In the case of death, the nominee or heir receives the sum and bonus.

3. Convertible Whole Life Insurance (Suvidha)

It lies somewhere between Santosh and Suraksha’s plan. You have to convert the plan into endowment assurance after five years; otherwise, it will be treated as whole life assurance.

4. Anticipated Endowment Plan (Sumangal)

You can enjoy survival benefits periodically with this plan. The great thing about the scheme is that the nominee or the heir receives the full sum assured and bonus in case the policyholder dies. There is no effect of periodical benefits on the death benefits.

5. Joint Life Assurance (Yugal Suraksha)

If one of the partners is eligible for PLI, he or she can also include his/her partner in the plan as an insured individual.

There are also specialized schemes for physically handicapped individuals and children by PLI. For individuals living in rural areas, there is a separate set of plans, which include Grama Suraksha, Grama Suvidha, Gram Priya, Bal Jeevan Bima, and Grama Santosh.

Types of Policies Offered By Life Insurance Corporation (LIC)

Insurer Plan Entry Age(Min.) Sum Assured Benefits
Jeevan Umang Plan 90 Days Rs. 20,000 Tax Benefit
Death Benefit
Maturity Benefit
Surrender Value
Optional benefits are also available with this plan.
Jeevan Pragati Plan 12 Years Rs.1.5 Lac Tax Benefit
Death Benefit
Maturity Benefit
Surrender Value
LIC’s Jeevan Amar 18 Years Rs. 25,00,000 Tax Benefit
Death Benefit
Maturity Benefit
Surrender Value
Optional benefits are also available with this plan.
New Bima Bachat Plan 15 Years Rs. 35,000 to 70,000 Tax Benefit
Death Benefit
Maturity Benefit
Surrender Value
New Jeevan Nidhi Plan 20 Years Rs. 1 Lac-1.5 Lac Tax Benefit
Death Benefit
Maturity Benefit
Surrender Value

Jeevan Umang Plan 

Jeevan Umang Plan is a whole life insurance plan and it serves people the same as whole life Insurance (Suraksha) serving people.  This is the most widespread scheme in which the minimum sum assured is Rs. 20,000, whereas the maximum sum assured has no limit. You are eligible for this scheme after the completion of 90 days of your life and the maximum eligible age for this plan is 55 years.

Jeevan Pragati Plan

It’s an endowment plan, with this plan you can decide your future. This plan can help you with your wealth stability and much needed for every customer, you can fulfill your financial liabilities. This is the most widespread scheme in which the minimum sum assured is Rs. 1.5 Lacs, whereas the maximum sum assured has no limit. You are eligible for this scheme after the completion of 12 years of your life and the maximum eligible age for this plan is 45 years.

LIC’s Jeevan Amar

It’s a term insurance plan, term insurance is one of the most demanded and most liked insurance policies. Most of the companies offer their customer, term assurance plan which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term and you can fulfill your financial liabilities.

This is the most widespread scheme in which the minimum sum assured is Rs. 25,00,000/, whereas the maximum sum assured has no limit. You are eligible for this scheme after the completion of 18 years of your life and the maximum eligible age for this plan is 65 years.

New Bima Bachat Plan

It’s a money-back plan, we all want to return on our investment, and as much as the amount you invest, you will get the bigger return and we all invest with the hope return and this indicates the same side of return. As per the name of this plan you will get that this plan is about saving (bachat) and yes, this plan is about saving money but the money-saving is done by the Bima Bachat Plan on your behalf. You need to invest according to your pocket and just wait for the perfect time of return.

This is the most widespread scheme in which the minimum sum assured will vary between Rs. 35,000 to 70,000, whereas the maximum sum assured has no limit. You are eligible for this scheme after the completion of 15 years of your life and the maximum eligible age for this plan will vary between 60-65 years.

New Jeevan Nidhi Plan

It’s a pension plan, we all plan our future and there is nothing new in this. After retirement life, everyone needs financial support, and a pension plan is one of the best ways to get financial support in your retirement life. In India, government employees are rewarded with pension service after serving the country and this pension makes retirement life easy.

This is the most widespread scheme in which the minimum sum assured will vary between Rs.1 Lac to 1.5 Lacs, whereas the maximum sum assured has no limit. You are eligible for this scheme after the completion of 20 years of your life and the maximum eligible age for this plan will vary between 58-60 years.

Difference Between PLI and LIC

Through this table, we discuss some major differences between PLI and LIC to help choose the best insurance policy.

Postal Life Insurance Life Insurance Corporation of India
Eligibility The policies are offered only to employees of state or central governments or employees of Nationalized Banks, Government aided Educational Institutions, Universities, Local Bodies, Public Sector Undertakings, etc. Every Indian citizen is eligible for policies from LIC.
Bonus The insured individuals or their beneficiaries receive seven percent as a bonus or more. As per the current schemes, the rate of interest is in the range of four to five percent.
Sum Assured The PLI allows Rs. 50 lakhs as the maximum sum assured. With LIC, there is no limit to the maximum sum assured.
Premium payment You need to visit the nearest post office branch for paying the premium. Electronic clearance systems and online payments are other modes for premium payments. The premium payment can be done through the LIC branch, collection points, or even through an online mode of payment.
Premium rate The premium rates of most plans are cheaper than those offered by LIC. You can also get a rebate of two percent by paying a premium of 12 months in advance. There is also one percent rebate if the premium is paid in advance for six months. You have to pay a comparatively higher premium for LIC.
How to purchase You can purchase the policies only from the post offices. The policies can be purchased either through the agents or by visiting the LIC office. The company has recently introduced online term plans and pension plans.
Maximum age limit While purchasing the plan, the age of the individual should not be more than 55 years. The maximum age limit for choosing insurance policies is 75 years.