LIC UNIT LINKED POLICY

Advantage of LIC's SIIP over Mutual Fund.

1. LIC's SIIP offers Guaranteed additions., But no Mutual fund plan gives guarantee.

2.LIC's SIIP is 100% Tax free. But in Mutual fund your returns will be liable for TDS (Tax deducted at source, 10% to 15%).

3.In the event of unfortunate death, LIC's SIIP will give 10 times of your annualised premium as insurance claim to your loved ones.

But in Mutual fund only the fund value will be given to nominee.

4.In LIC' SIIP you can claim upto 1.5 lakh as 80 c exemption, but in Mutual fund it is not available except in ELSS schemes.

5.In LIC's SIIP you have switching option from one fund type to another, But in MF no such facility.

6.If we consider past performance, LIC's SIIP has given a growth of over 20% in last 7 months at a time when many Mutual fund schemes are giving negative return.

(on 2nd March 2020:

NAV was 10.

On 30 October 2020: NAV is 12.06).

What more you want from a linked plan.??

Comments

Comparison of PPF and life insurance: Which comes first?

Some people compare life insurance with other saving instruments such as PPF as both can be saving avenues as well as allow one to reduce one's tax outgo. However, strictly speaking PPF and life insurance are actually two very different instruments with few features in common. Sound financial planning rests on the twin pillars of protection and savings. Protection always comes first because once you are fully insured even if something unfortunate happens to you, your family will be able to maintain its standard of living without any trouble. Only after ensuring financial protection can you think about saving for other goals such as your child's education, his/her marriage, your retirement etc. An example will bring out why the life risk element is the primary need in financial planning i.e. protection first, savings next: A person, aged 30 with good taxable income, wants to create a corpus for use after 15 years for the wedding of his daughter who is now 5...

LIC online plan

Search This Blog