Skip to main content

Which is better LIC or PPF?


 The comparison between LIC (Life Insurance Corporation of India) and PPF (Public Provident Fund) depends on various factors, including your financial goals, risk tolerance, and investment preferences. Let's take a look at the key features of both LIC and PPF to help you make an informed decision:

LIC (Life Insurance Corporation of India):

  1. Insurance and Investment: LIC policies offer both insurance coverage and an investment component. Traditional endowment plans provide life cover along with maturity benefits, while ULIPs (Unit-Linked Insurance Plans) offer market-linked returns.
  2. Guaranteed Returns: Some LIC policies offer guaranteed returns in the form of bonuses and maturity amounts. The returns are generally modest but stable.
  3. Tax Benefits: LIC premiums are eligible for a tax deduction under Section 80C, and the maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act.
  4. Risk: Traditional LIC policies come with lower risk as the returns are guaranteed, but ULIPs are subject to market risks.

PPF (Public Provident Fund):

  1. Government-backed Scheme: PPF is a government-backed long-term savings scheme with a fixed interest rate.
  2. Investment Period: PPF has a lock-in period of 15 years, and the investment can be extended in blocks of five years after maturity.
  3. Returns: PPF offers a tax-free fixed interest rate, which is declared by the government every quarter. The rate is usually higher than most traditional LIC policies.
  4. Tax Benefits: PPF contributions are eligible for a tax deduction under Section 80C, and the interest earned and maturity amount are tax-free.

Comparison Considerations:

  1. Insurance Cover: If you need life insurance coverage along with savings, LIC policies offer both, while PPF does not provide insurance.
  2. Investment Flexibility: PPF has a fixed interest rate declared by the government, whereas LIC policies have different plans with varied risk and return profiles.
  3. Lock-in Period: PPF has a longer lock-in period (15 years) compared to most LIC policies.
  4. Risk: PPF is considered a safer investment as it is government-backed, while LIC ULIPs carry market risks.
  5. Financial Goals: Consider your financial goals and time horizon. If you need a long-term savings plan with tax benefits and fixed returns, PPF could be a suitable option. If you require insurance coverage along with savings and are willing to take some investment risk, LIC policies could be considered.

It's important to diversify your investments based on your financial goals and risk appetite. You may choose to have a combination of both LIC and PPF, along with other investment options, to build a well-balanced and diversified portfolio. Consulting with a financial advisor can help you make an appropriate decision based on your individual circumstances.



[Note: This is not lic orginal website.This is  the only thing to shear information about lic] 



Top of Form

 

Labels:

Comments

Post a Comment

Thank you for your comment

Popular posts from this blog

The Power of Words: Exploring LIC's Iconic Slogans

   The Life Insurance Corporation of India (LIC) has used various slogans over the years to promote its services and create awareness about life insurance. Some of the popular slogans used by LIC include: 1.      "Zindagi ke saath bhi, zindagi ke baad bhi" - This slogan emphasizes that LIC provides financial security and support during life as well as after life. 2.      "Yeh pal humara hai" - This slogan highlights that LIC is there to safeguard and cherish the precious moments of life. 3.      "Zindagi ke sath bhi, zindagi ke baad bhi" - Similar to the first slogan, this phrase conveys that LIC stands by its customers through all stages of life. 4.      "Behtar tohfa hai jiwan, jiwan ka" - This slogan suggests that life insurance from LIC is the best gift one can give to themselves and their loved ones. 5.      "Humara apna khata" - This phrase implies that LIC is like a trusted account holder for your financial security. 6.      &quo
Post a Comment
Read more

basic understanding of stock market

  Here's a basic understanding of the stock market: A. What is it? The stock market is a network of exchanges where investors buy and sell shares of ownership (stocks) in publicly traded companies. Think of it as a giant marketplace where companies raise money by selling ownership stakes, and investors buy those stakes hoping they'll increase in value. B. Key players: Companies: They issue shares to raise capital for growth and operations. Investors: Individuals or institutions buying and selling shares. Stock exchanges: Platforms like the NYSE or Nasdaq where shares are traded. Brokers and advisors: Help investors buy and sell shares. C. How it works: Companies publicly sell shares through an initial public offering (IPO) . Investors buy shares hoping they'll rise in price, allowing them to sell for a profit (capital gains). The price of a stock fluctuates based on supply and demand, influenced by company performance, economic factors, and market
Post a Comment
Read more

The Step-by-Step Guide to Converting Your LIC Policy to Paid Up

To change over your LIC (Life Insurance Corporation of India) strategy to a settled up approach, you want to follow these means: Check Strategy Arrangements: In the first place, survey your LIC strategy reports to decide whether it is qualified for transformation to a settled up approach. Regularly, conventional taking part strategies that have gained an acquiescence esteem are qualified for change. Contact LIC or Your Representative: Contact your closest LIC branch or reach out to your insurance specialist to start the method involved with switching your contract over completely to a settled up status. They will direct you through the necessary advances and documentation. Fill the Application: You might have to finish up an application structure given by LIC to demand the change of your strategy to a settled up arrangement. This structure will require your approach subtleties and your mark. Pay Any Forthcoming Charges: On the off chance that you have any forthcoming expenses, you migh
Post a Comment
Read more