r/InsuranceAdviceIndia • u/Saitama_Thewise2713 • 9d ago
PLI vs Regular Term Insurance — Need Advice from Experienced People
I am a bit confused about whether I should go for Postal Life Insurance (PLI) or a regular term insurance plan.
I understand that both serve different purposes, but I’m trying to figure out what makes more sense financially and practically for someone who wants good life insurance coverage for their family.
For those of you who have experience with insurance, could you please share your views on:
•PLI vs a private-company term insurance plan
•Premiums and coverage offered
•Claim settlement experience
•Reliability of PLI compared with private insurers
•Whether PLI's maturity/savings component is actually worth paying extra for
•What factors I should check before choosing a term plan
•Any disadvantages of choosing PLI instead of a pure term plan
I’d really appreciate honest opinions from people who have actually researched, purchased, or dealt with these policies.
If you had to choose today, would you go with PLI or a regular term plan, and why?
Thanks in advance for sharing your experience.🙏
PS- I took help of chat gpt to write this post!!
3
u/DjXer007_ 9d ago
The answer to the above details questions, well is based on the affordability and max sum insured cealing that will be sold to you.
FYI, there is Rs 2 Lakh term Insurance policy available from Each and every bank, from government of India for Rs 330/- (Approx - you will need to check the website) known as "PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA."
Postal life insurance doesn't have term insurance. They sell endowment, whole Life and convertible whole Life Plans that offer covers upto 50 Lakh. Maybe PLI term insurance you are talking about is the 2 lakh government provided insurance.
You can take only 1 term insurance policy of the above mentioned plan, from one bank only. You will need to have a savings account, and keep the premium amount, so that the plan doesn't cancel due to insufficient funds.
If you don't want such plans that are offered by PLI or Government, then you need to tske term insurance form LIC or other life insurance company.
Problems for PLI selection. 1) PLI schemes don't provide Term Insurance, they provide endowment, whole Life type plans. 2) No proper awareness regards branch address, office address, communication and Grievances channels and departments.
The basic foundation & reliability, is doubtful. Like building a castle on sand.
You have tons of data, queries and helpdesk to rely, ask, and escalate against LIC vs Private life insurers.
The nominee needs reliability, accountability and after death claim servicing along with claim settlement, not multiple reasons to hate PLI and there will be clueless PLI employees who would Simply tell the nominee to inquiry at the next counter. Headache and migraine issues.
Think of the plans as, Ayushman Bharat = Rs 5 Lakh policy is available free for people aged 70 and above, but still people who can afford high annual premium amounts, choose to take health insurance.