Which option is good for investment, LIC or PPF

POSTED BY Raj Shinde ON March 19, 2013 3:32 pm COMMENTS (10)

Hello Manish, please help me in following stake.

Scenario #1)  If I invest 1L/year in LIC for 15 yrs in certain plan like Jeevan Saral.

I could get,

a) Maturity amount after 15yrs = 26L around(there may few thousand in addition)

b) Normal Death Coverage is = 45L around.

c) Acciddental Death Coverage = 66L around.

Scenario #2 )  If I invest 1L/year in PPF for 15 yrs.

I could get,

a) 31L as an maturity amount.

b) But no risk coverage (or is there any?)

Please suggest me which one should I opt?


10 replies on this article “Which option is good for investment, LIC or PPF”

  1. Dear Raj, E-shield from SBI is a new plan so there can not be past history for claim settlement.



  2. Chetan Ambi says:

    As Nitin suggested already PPF + A good term plan serve you better. If LIC premium is heavy for you then I think SBI online term plan (e-Shield) might be good to you.

    1. Raj Shinde says:

      Thank you sir,

      I gone through this SBI life eShield, it seems very reasonable one.

      all in all looks good. I did not find any settlement example
      hence not sure, but I would prefer to go with this.

      please throw some light

  3. Dear raj, you need to look into the calculations. After paying 2L Rs. cover is still 20.75L Rs. yes 1L Rs. is added from your first year’s prem. which was your money & LIC is not giving from it’s pocket. Carry on similarly for next years & till the last year i.e. 15Y.

    By the way, I already answered your basic query. This is the best policy one can purchase for the betterment of LIC staff, agents, LIC itself. So go get it.



  4. Dear Raj, on 1L Rs. prem. amount, how can your sum assured be 45L Rs. in Jeevan Saral Plan? Please show me the calculation.



    1. Raj Shinde says:

      Dear Ashal, please see the following calculations as per the LIC generated macro.

      Year Prem.paid Normal coverage Accident Coverage

      1 1L 2075000 4150000
      2 2L 2175000 4250000
      3 3L 2275000 4350000
      : : : :
      : : : :
      : : : :
      15 15L 4523000 6600000

  5. Nitin Verma says:

    hdfc Click 2 protect is reasonable not as expensive as LIC and also its among the top 3 when it comes to claim settlements.

  6. If you invest in scenario 1, you will put in a lot of money for a product which gives only about 6-7% returns which is well below inflation with low insurance coverage.

    Investing in ppf, getting term insurance is always the better option. If you have read articles in Jagoinvestor the answer is self-evident

  7. Nitin Verma says:

    PPF + a Good Term insurance should serve the purpose..

    1. Raj Shinde says:

      Thanks for quicker reply Nitin,

      Please suggest me any good term insurance plan.

      Thanks in Advance

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