LIC Bima Bachat Vs Fixed Deposit 

Read more about the difference between LIC Sanchay FD and LIC Bima Bachat Plan: 

LIC Fixed Deposit Plan – An Overview 

LIC of India offers a fixed deposit scheme called LIC HFL Sanchay, through its subsidiary, LIC Housing Finance Ltd. It offers guaranteed returns at fixed interest rates and flexible tenures ranging from 1 to 5 years. With this FD in LIC of India, Investors can opt for either cumulative (interest paid at maturity) or non-cumulative (monthly or periodic payouts) options, such as the LIC fixed deposit monthly income plan, which is ideal for those seeking regular income.

Under the Sanchay FD in LIC, there are options to take a loan, auto-renewal on maturity, and a nomination facility. The minimum investment starts at ₹20,000, with no upper limit. LIC FD interest rates vary by tenure and investor type, for example, a 1-year deposit may offer 6.70%, a 15-month deposit 6.75%, and select plans for senior citizens can go up to 7.75% per annum.

LIC Bima Bachat Policy – An Overview

LIC Bima Bachat is a participating, non-linked, and single-premium money-back plan that offers life coverage and pays survival benefits at set intervals during the policy term. At maturity, a single premium is returned along with loyalty additions, if applicable. The plan is available for 9, 12, and 15 years of the policy term. The amount of premium is decided based on the policy term and the life assured's age. The plan also provides financial security in an emergency with a loan facility. The plan also allows policyholders to enhance their coverage with optional riders. The plan is no longer available for purchase; however, existing customers can still enjoy all the benefits promised. 

LIC Bima Bachat vs LIC Fixed Deposit – A Comparative Analysis

Fixed deposit is a smart option to invest in as it is specifically designed for savings and investment purposes. If you want to save and invest for the future, it is suggested to invest in FDs. The below table illustrates the quick comparison between Fixed deposits and the Bima Bachat LIC plan:

*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C applies.

LIC Fixed Deposit and LIC Bima Bachat – Plan Benefits

1. LIC Fixed Deposit Policy- Sanchay

   The FD in LIC of India is a safe choice when comparing FD vs LIC for long-term savings. In addition to the following benefits, the LIC fixed deposit monthly income plan ensures steady income and financial stability.

   • LIC Sanchay offers guaranteed fixed interest rates for 1 to 5 years.

   • The deposit tenure is flexible, with 5, 10, or 15-year options.

   • Premature withdrawal is allowed, though interest is adjusted accordingly in this LIC fixed deposit policy.

   • Interest payouts are available monthly, quarterly, or at maturity.

   • Auto-renewal is available with every LIC FD scheme, ensuring convenience and continuity.

   • Nomination facility is included in the LIC FD plan for added security.

   • Senior citizens enjoy higher LIC FD interest rates.

2. LIC Bima Bachat Plan

   The Bima Bachat Money Back Policy is ideal for those seeking returns and protection. It has the following benefits:

   • The Bima Bachat LIC Plan provides life cover along with assured returns.

   • It offers death, survival, and maturity benefits, including Loyalty Additions.

   • The Bima Bachat Plan LIC policy includes rider options to enhance coverage.

   • Under the Bima Bachat Plan, the single premium is returned at maturity with Loyalty Additions.

   • Final payouts can be received in instalments.

   • Nomination is available under the policy for added assurance.

   • The LIC Bima Bachat also participates in LIC’s profits.

Wrapping It Up!

If you're looking for fixed and predictable returns, the LIC Fixed Deposit is a wise investment choice. However, remember that there will be no tax benefits. On the other hand, the LIC Bima Bachat 916 plan is a unique combination of insurance and savings. While FD in LIC is ideal for short- to medium-term goals, LIC Bima Bachat 916 suits long-term planners who want the security of insurance and the benefit of assured returns. Ultimately, the best choice depends on your personal financial goals and risk appetite.

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