The comparison between LIC (Life Insurance Corporation of India) and PPF (Public Provident Fund) depends on various factors, including your financial goals, risk tolerance, and investment preferences. Let's take a look at the key features of both LIC and PPF to help you make an informed decision:

LIC (Life Insurance Corporation of India):

  1. Insurance and Investment: LIC policies offer both insurance coverage and an investment component. Traditional endowment plans provide life cover along with maturity benefits, while ULIPs (Unit-Linked Insurance Plans) offer market-linked returns.
  2. Guaranteed Returns: Some LIC policies offer guaranteed returns in the form of bonuses and maturity amounts. The returns are generally modest but stable.
  3. Tax Benefits: LIC premiums are eligible for a tax deduction under Section 80C, and the maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act.
  4. Risk: Traditional LIC policies come with lower risk as the returns are guaranteed, but ULIPs are subject to market risks.

PPF (Public Provident Fund):

  1. Government-backed Scheme: PPF is a government-backed long-term savings scheme with a fixed interest rate.
  2. Investment Period: PPF has a lock-in period of 15 years, and the investment can be extended in blocks of five years after maturity.
  3. Returns: PPF offers a tax-free fixed interest rate, which is declared by the government every quarter. The rate is usually higher than most traditional LIC policies.
  4. Tax Benefits: PPF contributions are eligible for a tax deduction under Section 80C, and the interest earned and maturity amount are tax-free.

Comparison Considerations:

  1. Insurance Cover: If you need life insurance coverage along with savings, LIC policies offer both, while PPF does not provide insurance.
  2. Investment Flexibility: PPF has a fixed interest rate declared by the government, whereas LIC policies have different plans with varied risk and return profiles.
  3. Lock-in Period: PPF has a longer lock-in period (15 years) compared to most LIC policies.
  4. Risk: PPF is considered a safer investment as it is government-backed, while LIC ULIPs carry market risks.
  5. Financial Goals: Consider your financial goals and time horizon. If you need a long-term savings plan with tax benefits and fixed returns, PPF could be a suitable option. If you require insurance coverage along with savings and are willing to take some investment risk, LIC policies could be considered.

It's important to diversify your investments based on your financial goals and risk appetite. You may choose to have a combination of both LIC and PPF, along with other investment options, to build a well-balanced and diversified portfolio. Consulting with a financial advisor can help you make an appropriate decision based on your individual circumstances.

[Note: This is not lic orginal website.This is  the only thing to shear information about lic] 

Top of Form