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      LIC Jeevan Anand Vs PPF: What are the Differences?

      • 5 min read
      • Last Modified Date: October 9, 2023
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      LIC Jeevan Anand Vs PPF: What are the Differences? As can be seen, there are several sorts of investment routes, each with its own set of features and risk and return levels.  Investments linked to the markets are those invested in the markets. They provide returns that are not guaranteed. Fixed-income investments do not participate in the market and ensure returns that are guaranteed. These are typically preferred by those who are averse to market volatility, and if these avenues provide tax breaks.

      Section 80C of the 1961 Act provides several potential investment possibilities with tax advantages. The LIC Jeevan Anand and PPF plans are the most prominent options under Sec 80C. These plans have certain commonalities and distinctions that you should be aware of before investing. So, let us investigate LIC Jeevan Anand Vs PPF differences.

      LIC Jeevan Anand Is?

      LIC Jeevan Anand is a well-known life insurance product firm that provides a variety of insurance options. LIC Jeevan Anand’s plans provide protection against the danger of premature mortality. Furthermore, several plans offer an advantage once the insurance period is finished, resulting in an investment return.

      PPF Is?

      PPF stands for Public Provident Fund. It is a saving plan that is long-term and provides fixed income plus fixed rates of interest. The PPF strategy assists you in accumulating a lump sum corpus through monthly investments. Furthermore, the PPF system offers tax breaks on investment, profits, and maturity amounts.

      Read PPF Interest Rates for FY 2022-23 (October-December).

      LIC Jeevan Anand Vs PPF: Commonalities 

      LIC Jeevan Anand and PPF plans have some features. Among these parallels is the bellow:

      • LIC Jeevan Anand and PPF provide a tax credit of equal to Rs.1.5 lakhs per Section 80C.
      • Profits from PPF attract zero tax. According to specific terms and limitations, LIC Jeevan Anand’s plan also provides zero tax death and maturity advantages.
      • PPF enables fractional withdrawals beginning in the seventh year. From the fifth year onwards, LIC ULIP plans permit fractional withdrawals.
      • PPF loans are available between the third and sixth years. Loans are also permitted under typical LIC plans if the policy has surrender value.

      LIC Jeevan Anand Vs PPF: Distinction

      The parallels between the LIC Jeevan Anand and PPF are minor. But the contrasts are significant. Both plans are extremely diverse from each other and their distinctions are listed below –

      Distinction PPFLIC Jeevan Anand
      Requirements Residents of India can participate in the PPF scheme.A LIC Jeevan Anand plan can be purchased by resident Indian nationals, employers, and NRIs.
      Investment ReturnsThe government determines the investment’s rate of return. It is also evaluated on a regular basis.Traditional LIC plans provide death and maturity payouts that are guaranteed. If the LIC plans possess a bonus element, the rate of the bonus is not set. It is chosen by LIC and is based on LIC’s profitability experience.
      Investment typeInvesting in securities that provide income that is fixedLIC Jeevan Anand provides assured and savings programs that are linked to the market.
      The death payoutWhen the account holder dies, the available balance gets paid, that is the total amount deposited plus any returns received.Upon death, a particular death payout is provided, which may be greater than the fee paid for the plan.
      Duration15 years

      Plan can also get renewed in 5-year increments after maturation.

      LIC Jeevan Anand policies offer various duration ranging from 5 years to a lifetime
      Amount for depositing + DurationA PPF deposit can be started from Rs.100. There is no maximum amount set. Every fiscal year, a minimum of 1 deposit is required.The premiums due for LIC Jeevan Anand policies are determined by the plan chosen. The highest amount of premium may or may not exist. Furthermore, the premiums can get paid during the life of the policy, for a fixed time, or all at once upon purchasing the insurance.
      Advantages of maturityUpon maturation, investors will get a one-time payment for their investments and the cumulative interest rate.The maturation advantage of LIC Jeevan Anand plans differs based on the kind of policy purchased. There may be zero maturity advantage at all if you invest in term plans. Furthermore, under many LIC plans, the maturation reward can be delivered in a single amount or in increments.
      Market RisksPPF is free of market risk and provides guaranteed returns.Your money would be subjected to market risks if you select unit-linked LIC plans.

      Read NPS Vs PPF: Comparison, Return Rates & Which is Better.

      LIC Jeevan Anand Vs PPF: Which One Should You Choose? 

      LIC Jeevan Anand and PPF have advantages and disadvantages. When selecting either, consider your budgetary requirements. The PPF program allows you to build up an assured corpus that is also a tax-saver. LIC Jeevan Anand’s policy assists you in providing financial stability to your loved ones in the event of your untimely death. As a result, the justification for purchasing LIC Jeevan Anand and PPF schemes is distinct. But, if you are wanting to invest, you can choose PPF for set returns and LIC ULIPs for profits that are linked to the market. Investors may analyze LIC Jeevan Anand Vs PPf, an investment plan with assured payouts, for set returns.

      Conclusion

      As can be seen above, LIC Jeevan Anand Vs PPF has advantages and disadvantages. When selecting LIC Jeevan Anand Vs PPF, consider your budgetary requirements. The PPF program allows you to build up an assured corpus that is also a tax-saver. LIC Jeevan Anand’s policy assists you in providing financial stability to your loved ones in the event of your untimely death.

      Are you seeking an alternative to LIC Jeevan Anand and PPF? Look no further, since commercial real estate investment is a thriving business right now. Use the #1 commercial property investment platform like Assetmonk to reap the benefits of this amazing chance to generate passive income.

      LIC Jeevan Anand Vs PPF FAQs

      Between LIC Jeevan Anand and the PPF scheme, which is more flexible?

      LIC is much more flexible in terms of time.

      When will I receive my LIC amount?

      When the insurance matures, on certain dates, or upon death, one will get the LIC amount.

      Is LIC Jeevan Anand a better investment than PPF?

      A PPF policy is for savings. But, LIC Jeevan Anand is for insuring. So, choose an investment vehicle as per your goal.

      Is the PPF scheme a risk-free investment?

      The plan is supported by the Indian government, and the money in a PPF account is completely secure and safe, with assured returns.

      Is it possible for me to have two PPF accounts?

      You cannot open or have more than one PPF account.

      What is LIC Jeevan Anand and PPF?

      The LIC Jeevan Anand and PPF plans are the most prominent options under Sec 80C. PPF allows you to build up an assured corpus that is also a tax-saver. LIC Jeevan Anand’s policy assists you in providing financial stability to your loved ones in the event of your untimely death.

      What are the investment returns of PPF?

      The government determines the investment’s rate of return of PPF. PPF Returns are also evaluated on a regular basis.

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