LIC vs PPF vs SIP – Complete Comparison 2026
Three popular investment options in India each serve different purposes. Here's a comprehensive comparison to help you decide.
Quick Comparison
| Parameter | LIC Endowment | PPF | SIP (Equity MF) |
|---|---|---|---|
| Returns | 4-6% (guaranteed) | 7.1% (fixed) | 10-15% (market-linked) |
| Insurance | Yes ✅ | No ❌ | No ❌ |
| Tax on returns | Fully exempt | Fully exempt | 10% LTCG |
| Lock-in | Full term | 15 years | 3 years (ELSS) |
| Guaranteed | Yes | Yes | No |
| Risk | Zero | Zero | High |
Best Strategy for Different Goals
For Tax Saving + Insurance + Guaranteed Returns: LIC + PPF combination. Invest ₹60K in LIC (₹1L SA cover), ₹90K in PPF = complete ₹1.5L 80C benefit.
For Maximum Wealth Creation (10+ year horizon): ELSS SIP + Term Insurance. Buy ₹1Cr term at ₹8K/yr, invest ₹52K/yr in ELSS. 20-year return: ₹50L+ at 12% CAGR.
For Retirement Planning: NPS + LIC Jeevan Umang combination. NPS for market returns, Jeevan Umang for guaranteed income after retirement.
Our Recommendation
Don't choose just one — diversify! Ideal portfolio for a 30-year-old: 20% LIC, 30% PPF, 50% mutual funds. This gives guaranteed base + tax benefit + wealth creation.
Use our accurate LIC calculator with real tabular rates, 0% GST, and 2025-26 bonus slabs. Calculate Now →
