There are a lot of investment options available in the market, each with its own set of pros and cons. Two of the most popular investment options are LIC and Post Office recurring schemes. Let’s take a closer look at both to see which might be a better fit for you.
LIC offers a wide range of investment options and is one of the most trusted names in the insurance industry. However, its policies can be complex and it is important to carefully read the fine print before signing up.
Post office recurring schemes are a much simpler investment option with fewer options to choose from. They are also backed by the government, making them a safe and secure investment. However, the returns on these schemes are often lower than other options in the market.
Benefits of LIC Scheme:
- You can deposit Yearly, Quarterly, or Monthly(ECS) in LIC Scheme.
- Maturity received in the LIC scheme is TAX-FREE under section 10-10d of the Income-tax act.
- The amount deposited in LIC is exempted under section 80c of the Income-tax act.
- You can continue the LIC scheme after 10 years. You cannot continue the post office scheme after 1 year.
- If you forgot to take maturity at the end of the 10 years. You can get a return beyond 10 years in the LIC scheme. This is not available in the post office scheme.
- Get free insurance with the LIC scheme.
- LIC is awarded by trust brand No.1
- 1000’s of Insurance agents to help you and collect your premiums from your office/Home. In Post, office scheme home service is not available.
Maturity at the end of the 10 years in the Monthly Scheme
Post Office Return
|Rs.500||Rs.106452 + Free Insurance||Rs.89010 -Income Tax||Rs.17442|
|Rs.1000||Rs.212904 + Free Insurance||Rs.178021-Income Tax||Rs.34883|
|Rs.1500||Rs.319356 + Free Insurance||Rs.267031-Income Tax||Rs.52325|
|Rs.2000||Rs.425808 + Free Insurance||Rs.356042-Income Tax||Rs.69766|
|Rs.2500||Rs.532260 + Free Insurance||Rs.445052-Income Tax||Rs.87208|
|Rs.3000||Rs.638712 + Free Insurance||Rs.534063-Income Tax||Rs.104649|
|Rs.3500||Rs.745164 + Free Insurance||Rs.623073-Income Tax||Rs.122091|
|Rs.4000||Rs.851616 + Free Insurance||Rs.712084-Income Tax||Rs.139532|
|Rs.5000||Rs.1064520 + Free Insurance||Rs.890105-Income Tax||Rs.174415|
LIC Maturity Calculated @10% I.R.R