POSTED BY September 29, 2013 4:46 pm COMMENTS (3)ON
I have been reading here that instead of taking Life insurance policy, better go for Term plan+ PPF
My query here is- we can add amount in PPF account till 15 years. After that, as per my understanding, we will have to withdraw that amount and re-invest it in some other things, if we are saving for retirement purpose. However, Max limit is 1L which can be put in PPF account. My point is lets say I put 2000/-pm in PPF for 15 years.. and I get around 10L after 15 years. I will have to withdraw that 10L amount and won’t get compound interest on this amt after 15 years. A new PPF account will help for max 1L rupees.
Instead if I take a Jeevan Saral LIC policy, even after 15 years I will keep getting interest on whole amount accrued. Correct me If I am wrong here.
This is what I feel huge gap between life insurance policy and PPF account.