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LIC vs Other PSU, Private Sector companies

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11 Oct, 2020 by  Sandip B

I'm 26 and I have been thinking to buy term insurance in a couple of years from now. I am kind of aware about major private companies and thier plans.

However, I need to understand about LIC and it's plans.

  1. Does LIC have any benefits over other companies?
  2. Is buying LIC plan "safer" compared to private sector company plans?
  3. LIC Being state owned, does it match the offerings and customer service offered by private companies?
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Term Life Insurance

1 Answer

11 Oct, 2020

Dear Sandeep. As far as term assurance plan is concerned I do not think LIC has any added advantage. Had it been about a traditional plan my answer could hv been different. As long as you are truthful while filling the proposal form & paying premium on time , you are ' safe' anywhere. In my view LIC service level would be at par if not better in comparison to any private company. It has its working on ' de-centralised' mode & much of the servicing & claim work is finished at branch level itself. While buying term plan you just concentrate on features & pricing. Though theoriitically all insurance co are same but better to hv it from top 10.

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12 Oct, 2020
Thanks for the explanation Manoj. One more question, is there any major difference in terms of plan features and pricing between LIC and other traditional term plans?
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12 Oct, 2020
By traditional plans I means plans of endowment category. (saving oriented ). These are two different plans & premium can not be compared.
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