To secure a stable financial future, consider NPS or LIC. Understand both schemes before deciding which one is better for you. Here’s a quick guide.
The decision between NPS vs LIC in terms of financial planning might be difficult. Both have special benefits that meet certain demands. Let's look at the elements that can help you make a decision -
Choose NPS or LIC based on your financial goals, risk tolerance, and salary structure. NPS is better for a balanced investment with higher returns, while LIC's endowment plans or ULIPs are ideal for combining investment and insurance.
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NPS and LIC serve different purposes. LIC provides life insurance with assured returns, while NPS focuses on flexible investments for retirement planning. When deciding between NPS and LIC, consider your objectives.
NPS has a 60-year lock-in duration. After the third year has passed, some conditions permit partial withdrawals.
Because of the tax advantages, flexibility, and possibility for higher returns, NPS can be an excellent retirement investment. However, it depends on your risk tolerance and financial objectives.
The NPS offers few investment possibilities, market-related risks, and withdrawal limitations before retirement. It might not be suitable for people looking for rapid money or returns that are certain.