Insurance and Tax planning are two different sides of same coin. Premium paid for Insurance is not only for life cover but it also saves tax under 80C of Income Tax Act., Tax Saving plans play dual role as life saver as well as tax saver.
The major aspect of these plans are guaranteed returns and best claim ratio in the world. There are plans for all needs from life insurance, children education planning, children marriage planning, Retirement planning, planning for occasions, guaranteed life time pension etc.,
Is PPF better option than LIC Tax Saving plans?
From a layman’s point of view, there is no difference between PPF and tax saving plans. Both the investments differ in every aspect. PPF provides best interest rates in the country and saves tax under 80C of Income Tax act., Life Insurance plans give less returns when compares to PPF because it comes with inbuilt Life Insurance cover, Loan facility, surrender facility, tax free returns.
Requirements and needs differ from person to person. Both the investments are good but at the same time it depends on the time taken to achieve the goals. As LIC of India is having many plans to suit the needs of everyone, both short and long term goals also can be achieved with these policies.
Which is the best LIC policy for child?
There is one more plan called as Jeevan Lakshya which ensures continued education in case of any eventuality of the policy holder also. This plan perfectly matches Child plan retirements with guaranteed returns. This plan is populary called as Kanyadaan plan as this one plan is enough for parents’ and child.