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LIC plans and postal life insurance (PLI) plans are government back life insurance plans and these plans are similar to each other in many cases. It is worth comparing plans of both the insurers so one can understand which one to choose from these plans.
For this purpose, we have tried to compare LIC's endowment plan (814) and Postal Life insurance's Endowment Assurance (EA) Plan Santosh. These plans are selected because policy parameter and features are similar to each other.
Related Link: Premium & Maturity Calculator for PLI Santosh Plan
| Parameters and Eligibility | LIC New Endowment Plan | PLI Santosh EA Plan |
|---|---|---|
| Individuals | All Indian Citizen including PIOs | Government, PSUs and Government Bodies's Employees |
| Age of Entry | 8 to 55 years | 19 to 50 years |
| Policy Term | 12 to 35 years | 5 to 41 Year |
| Age at Maturity | 20(min) and 70 (Max) | 35(min) and 60 (Max) |
| Premium Mode | Monthly, Quarterly, Half yearly or yearly | Monthly, Quarterly, Half yearly or yearly |
| Income tax Exemption | Yes | Yes |
| Tax Free Maturity | Yes | Yes |
| Avaiable Riders | Accidental benefit Rider, Term Rider | None |
| Maturity Benefits | Sum Assured + Bonus + Final Addition Bonus | Sum Assured + Bonus |
| Death Benefits | Sum Assured + Accumulated Bonus + Final Addition Bonus (if any) | Sum Assured + Accumulated Bonus |
To compare these two plans with respect to premium, bonus, maturity and death benefits, two examples of each plan with terms 15 and 25 years have been taken.
For First example, plans with following details have been taken.
| Example-1 | |
|---|---|
| Age | 30 Year |
| Sum Assured | 10,00,000 |
| Term | 15 |
| Year of Purchase | 2016 |
Following table provides premium, bonus rates and maturity amounts. The bonus rates have been taken for year 2016 and considered constant for projection of maturity. In both plans Bonus is declared as per thousand of SA per year.
| Benefits Details of Example-1 | ||
|---|---|---|
| Details | LIC New Endowment Plan | PLI Santosh EA Plan |
| Sum Assured (A) | 10,00,000 | 10,00,000 |
| Yearly Premium (B) | 67,070 [Calculate] | 65,268 [Calculate] |
| Total Premium (C )= (Bx15) | 10,06,050 | 979020 |
| Bonus Rate(D) | 38 | 57 |
| Bonus Amount (E)=(A x 15 x D/1000) | 5,70,000 | 8,55,000 |
| FAB Rate(F) | 0 | 0 |
| Total Maturity (E)=(A+ E +F) | 15,70,000 | 18,85,000 |
In LIC endowment plan, generally, Final Addition Bonus is applicable in case of policy having term greater than 15 years while PLI does not have final addition bonus.
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Another comparison (Example-2) has been done with longer term (25 Years) with same Age and Sum Assured.
| Example-2 | |
|---|---|
| Age | 30 Year |
| Sum Assured | 10,00,000 |
| Term | 25 |
| Year of Purchase | 2016 |
For Example-2, Following table provides premium, bonus rates and maturity amounts. The bonus rates have been taken for year 2016 and considered constant for projection of maturity.
| Benefits Details of Example-2 | ||
|---|---|---|
| Details | LIC New Endowment Plan | PLI Santosh EA Plan |
| Sum Assured (A) | 10,00,000 | 10,00,000 |
| Yearly Premium (B) | 36,935 | 37,044 |
| Total Premium (C )= (Bx25) | 9,23,375 | 9,26,010 |
| Bonus Rate(D) | 48 | 57 |
| Bonus Amount (E)=(A x 25 x D/1000) | 12,00,000 | 14,25,000 |
| FAB Rate(F) | 450 | 0 |
| FAB Amount (G)=(A x F/1000) | 4,50,000 | 0 |
| Total Maturity (H)=(A+ E +G) | 26,50,000 | 24,25,000 |
Death claim or risk cover in both plans is equal to Sum Assured + Accumulated Bonus up to year of death, following table charts out policy year-wise death claims for both plans.
| Year | Age | Sum Assured | LIC New Endowment (814) | PLI Santosh Plan | ||
| Bonus | Risk Cover | Bonus | Risk Cover | |||
| 2016 | 30 | 1000000 | 0 | 1000000 | 0 | 1000000 |
| 2017 | 31 | 1000000 | 48000 |
1048000 |
57000 | 1057000 |
| 2018 | 32 | 1000000 | 96000 | 1096000 | 114000 | 1114000 |
| 2019 | 33 | 1000000 | 144000 | 1144000 | 171000 | 1171000 |
| 2020 | 34 | 1000000 | 192000 | 1192000 | 228000 | 1228000 |
| 2021 | 35 | 1000000 | 240000 | 1240000 | 285000 | 1285000 |
| 2022 | 36 | 1000000 | 288000 | 1288000 | 342000 | 1342000 |
| 2023 | 37 | 1000000 | 336000 | 1336000 | 399000 | 1399000 |
| 2024 | 38 | 1000000 | 384000 | 1384000 | 456000 | 1456000 |
| 2025 | 39 | 1000000 | 432000 | 1432000 | 513000 | 1513000 |
| 2026 | 40 | 1000000 | 480000 | 1480000 | 570000 | 1570000 |
| 2027 | 41 | 1000000 | 528000 | 1528000 | 627000 | 1627000 |
| 2028 | 42 | 1000000 | 576000 | 1576000 | 684000 | 1684000 |
| 2029 | 43 | 1000000 | 624000 | 1624000 | 741000 | 1741000 |
| 2030 | 44 | 1000000 | 672000 | 1672000 | 798000 | 1798000 |
| 2031 | 45 | 1000000 | 740000 | 1740000 | 855000 | 1855000 |
| 2032 | 46 | 1000000 | 793000 | 1793000 | 912000 | 1912000 |
| 2033 | 47 | 1000000 | 846000 | 1846000 | 969000 | 1969000 |
| 2034 | 48 | 1000000 | 899000 | 1899000 | 1026000 | 2026000 |
| 2035 | 49 | 1000000 | 962000 | 1962000 | 1083000 | 2083000 |
| 2036 | 50 | 1000000 | 1030000 | 2030000 | 1140000 | 2140000 |
| 2037 | 51 | 1000000 | 1108000 | 2108000 | 1197000 | 2197000 |
| 2038 | 52 | 1000000 | 1206000 | 2206000 | 1254000 | 2254000 |
| 2039 | 53 | 1000000 | 1354000 | 2354000 | 1311000 | 2311000 |
| 2040 | 54 | 1000000 | 1502000 | 2502000 | 1368000 | 2368000 |
| 2041 | 55 | Maturity | 2650000 | Maturity | 2425000 | |
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