Hi,
Actually premium is depends upon so many factor one of them is age also , you have mentioned only here about age. Such things like term , sum assured , mode of payment , life assured occupation , health and policy nature also is it whole life , money back , term insurance or ulip type.
Only on the base of premium its very difficult to compare between LIC and SBI.
For your kind information an another example like you is:-
SBI plan name saral life age 40 ,term 15 , s.a. 1 lac prem. is 7574 , maturity @ 10% is 167500
LIC plan name jeevan saral age 40 , term 15 , s. a. 1 lac prem. is 4804 , maturity @ 10 % is 173957
HAVE A NICE DAY.

I don't know which policy you are talking In my opinion if your are going for a life insurance, then go for term insurance plan. For a 40 yr old, for a sum assured of Rs. 2500000 and for a term of 20 yrs the annual premium stands at Rs. 12,025 only (For LIC Amulya Jeevan, Table no. 190, as per their website) . The only drawback is that you don't get a single penny if the risk doesn't happens during the insured period. But it is the most profitable option to the life insured. The balance amount (Rs. 16000 per yr) if you invest in PPF you will earn interest @ 8% compounded annually. If you continuously go on investing the balance amount in PPF a/c then after 20 yrs you will get total Rs 763,928.

The final amount obtained from the PPF a/c follows EEE tax policy plus any court decree cannot freeze your PPF a/c (to the best of my knowledge, you may inquire this further) plus loan option available after 3rd yr onwards (this option is also available with some insurance policies) plus partial withdrawal option available from 5th or 6th yr onwards (i am not sure about the exact year). In case of insurance policy the withdrawal option is totally dependent on the insurance company ( in the form of bonuses ). Plus your PPF a/c is purely Govt. a/c whereas your insurance policy is not maintained by the Govt.(even the LIC is a Govt. undertaking not a fully Govt. remember the case of VSNL) so making it less riskier than an insurance policy.

The insurance agents will generally push for insurance plan for which he/she gets higher commission. Better for you try to push him for this policy. Ask him to show him documentary proof showing his commission rates for different policies, after all its your money from which he is paid. For the above plan he gets only 2% of the premium per yr that you pay. There are many plans for which he may even get upto 35% per yr. A rule of thumb, more you pay for a sum assured, higher the commission the agent gets.

In my personal view LIC is the best insurer because of their claim settlement ratio, branches, Govt. backing and years of service. May be you have to pay more as compared to others but it is the service that should matter that they offer to your family in your absence.

At the end remember one thing "NEVER TRY TO MAKE YOUr INSURANCE POLICY EARN, IT'S FOR YOUR FAMILY NOT FOR YOU"

INSURANCE IS AN EXPENSE , NOT AN AVENUE FOR INVESTMENT.

Insurance is basically a LOSS REDUCING AVENUE for UNFORESEEN EVENTS.

Go For PURE TERM PLAN. with no maturity value.

It is the cheapest and the best.

You can invest the premium saved in better avenues like SIP IN MUTUAL FUNDS / PPF / DIRECT EQUITY.

The returns from an ENDOWMENT / MONEYBACK policy will hardly beat inflation in the long run.

INSURANCE IS AN EXPENSE , NOT AN AVENUE FOR INVESTMENT.

Insurance is basically a LOSS REDUCING AVENUE for UNFORESEEN EVENTS.

Go For PURE TERM PLAN. with no maturity value.

It is the cheapest and the best.

You can invest the premium saved in better avenues like SIP IN MUTUAL FUNDS / PPF / DIRECT EQUITY.

The returns from an ENDOWMENT / MONEYBACK policy will hardly beat inflation in the long run.

LIC Policies cost more that all other companies but they are better as their claim settle ratio is 97%. You can be sure that your claim when it arises will be settled. With SBI the claim settlement ratio is 83%. This means 17 claims out of 100 will be rejected by SBI and you could be one of them. While with LIC only 1 in three will be rejected. Thus your chance of claim rejection is 5 times with SBI.

What kind of insurance do you want? In my opinion, only go for pure term insurance policy. Never mix insurance and investment. For policy reviews visit:

http://finmats.blogspot.com

Different plans have different features, and accordingly there will be difference in premium rates. Comparison don't work in such cases.

Different plans have different features, and accordingly there will be difference in premium rates. Comparison don't work in such cases.

lifeinsurance.awardspace.info - try this site to find such info about life insurance and compare their rates.