LIC Bima Bachat vs Fixed Deposit

Read on to know more: 

Fixed Deposit Investment – An Overview 

Fixed deposits are pure investment schemes in which you can invest for a fixed term as per your requirements and receive good returns on your invested amount at the time of maturity. Banks and other financial organizations offer Fixed Deposit (FD) schemes and you can secure an extensive range of benefits by investing in this option. FD offers you higher returns compared to what you receive on your savings account. 

Generally, banks do allow premature withdrawal before a maturity period but, in FD the returns are assured and you are also allowed to withdraw money in case of need or emergencies. The accrued interest can be claimed as monthly or yearly or at the time of maturity of the investment. The investment tenures are also flexible i.e., from 7 days to 10 years. 

LIC Bima Bachat Policy – An Overview

LIC Bima Bachat is a participating, non-linked, and single premium money-back plan that offers life coverage, in addition, to return on your investment in a money-back form. The plan is mainly 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 provides financial security against death during the policy tenure along with paying survival benefits at specific tenures during the plan tenure. 

LIC Bima Bachat vs 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 LIC Bima Bachat plan: 

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

Benefits of Investing in Fixed Deposits and LIC Bima Bachat Plan 

Wrapping It Up!

If fixed returns are your expectations, then FD is a smart decision for investment though you might not receive any tax benefits. Even in the case of regular income from your investment, FD is a good option. LIC Bima Bachat is also an ideal plan as it is a single premium money-back policy and offers a death benefit and maturity benefit. Always go for an investment option that suits your needs.