February 4, 2014 9:26 pm
which one is better to have a (term plan 0f 4000 and ppf of 12000) or a life insurance of 16000??
Dear Anurodh, how can we calculate on a rough data? If you really want to know the answer, please do a simple thing. Check the prem. of term cover for say 10L Rs. in LIC and check the prem. for similar sum assured for a combo policy. Post the 2 prem. figures and we can discuss then.
Dear Anurodh, how much insurance you are getting from 4K and 16K prem?
i dont have the exact calculation.
i just gave the rough data
It’s very easy to compare the data if you choose a specific policy and compare the life cover, over all returns with respect to term.
In general I can tell you that first option will provide you better returns and more life cover.
With traditional endowment policies you will get only 20-30 times of life cover. Hence in Rs 16000/- the life cover will be Rs. 4.8 Lakh at max. Also the overall returns from this will not be more than 6%. Hence your investment of Rs 16K per annum will grow to approx. Rs. 6.23 Lakh in 20 years.
Whereas in the PPF it will grow @8.5% hence your investment of Rs 12K per will become Rs. 6.29 Lakh in 20 Years which is more than Rs. 6.23 Lakh.
Not only this in the remaining Rs 4K you will get a life cover in the range of Rs 30 Lakh to 40 Lakh depending on your age and the term insurance you choose which is much higher than insurance cover provided by endowment policies.
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