LIC v/s Post Office Recurring Scheme

Benefits of LIC Scheme:

  1. You can deposit Yearly, Quarterly, or Monthly(ECS) in LIC Scheme.
  2. Maturity received in LIC scheme is TAX FREE under section 10-10d of Income tax act.
  3. The amount deposited in LIC is exempted under section 80c of Income tax act.
  4. You ca continue LIC scheme after 10 years. You cannot continue post office scheme after 1 years.
  5. If you forgot to take maturity at the end of the 10 years. You can get return beyond 10 years in LIC scheme. This is not available in post office scheme.
  6. Get free insurance with LIC scheme.
  7. LIC is awarded by trust brand No.1
  8. 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 Monthly Scheme


LIC Return

Post Office Return

LIC Gain

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