October 22, 2010 10:39 am
how good is postal life insurance, available for people in the government sector?
What I pay pli premium online and what process I follow .please tell me. thanks .
Yes you can pay pli online. just go to website http://www.epostoffice.gov.in
and create new registration there. and then login. and
make your pli payment online.
available only for govtsector and aided institutions, nationalised banks and fin institutions like IDBI, UTI
postal life insurance is available for employees of central and state government, defence, telecom, govt. aided institutions and universities, nationalised banks, PSU of govt. and for local bodies, zilla parishad, fin instituions like IDBI, IFCI, UTI etc. & regional rural banks.
i’m 34 years old, so my monthly premium works out to for a 5 lakhs policy ( maximum permitted is 10 lakhs per head)
for 23 years monthly premium 1775 total amount paid 489900 expected value1305000
for 25 years monthly premium 1575 total amount paid 472500 expected value 1375000
Your idea of considering it as a debt fund is good. So should i go for a 5 lakhs policy or a 10 lakhs policy at the above options?
Your IRR comes around to be approx. 7.7% in both the options. If you’re comfortable with this kind of return for such a long term, go ahead.
But I won’t recommend that. Even your PPF can give more return than this. And above all why don’t you take equity diversified mutual funds + term insurance? That is best for you. If you don’t want to take much risk, go for balanced mutual funds. Whatever you choose, your maturity amount will be more than these postal life insurance plans.
Hope it will help you.
But I heard that only govt employees can purchase Postal Life Insurance.
Is it true?
Yes, that’s true. Only Govt. employees are eligible to purchase life insurance plans from post office.
In comparision to other companies and their endowment policies , postal life insurance is better , as It offers better returns than other comparable products. For example, Postal Life Insurance has announced a bonus of Rs 70 per Rs 1,000 sum assured on its endowment policy – where the insured gets the sum assured plus annual bonuses when the policy period is over – irrespective of maturity since 2003.
In contrast, average bonus announced by the Life Insurance Corporation (LIC), India’s largest life insurer, for endowment policies was in the range of Rs 30-48 in past five years.
So if you are looking at safe investments and want to go purely debt with some amount of insurance , you can go for these , just make sure you understand that these are not life insurance solution as they will cover you for pennies , you should take term insurance for your insurance needs
I am confused between PPF and PLI(For debt investment). plz help
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