Public Provident Fund (PPF) VS PNB MetLife Century Plan Life Insurance Comparison

 

 

Public Provident Fund (PPF) VS PNB MetLife Century Plan Life Insurance Comparison is our prime focus, So both  Public Provident Fund (PPF)  and PNB MetLife Century Plan Life Insurance are two different financial products that serve different purposes. While both offer savings and investment options, they have distinct features and benefits. 

 

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PNB MetLife Century Plan features details

 

 

Public Provident Fund (PPF) VS PNB MetLife Century Plan Comparison

  

 

1. Returns: PNB MetLife Century Plan is an Individual, Non-linked, Participating, Savings, Life Insurance plan. The plan offers a consistent income and assists in accumulating a corpus to help reach the intended goals and ensure your loved one's future without making any sacrifices.. On the other hand, Public Provident Fund (PPF) is a government-backed savings scheme that offers a fixed interest rate, which is determined by the government periodically. The current PPF interest rate is fixed at 7.1%.

 

2. Flexibility: PNB MetLife Century Plan provides flexibility in terms of premium payments. You can choose to pay premiums for a limited term or throughout the policy tenure. Additionally, PNB MetLife Century Plan has no unlimited annual contribution limit starting from the Minimum Annualised Premium will be Rs 24000 per annum if the policy holder choosing a Policy Paying Term (PPT) of 10, 12, or 15 years. However if the policy holder choosing a Policy Paying Term (PPT) of 5 to 9 years then the Minimum Annualised Premium will be Rs 60000 per annum. However there you can choose different Premium Paying Term (PPT) which are 5, to 10, 12, 15 years respectively. Also you can get a fixed tax free return from the first year as per you choice in Smart and Super options. In contrast, Public Provident Fund (PPF) has a fixed annual contribution limit (currently set at Rs. 1.5 lakh in India), and you cannot alter your contributions during the 15-year lock-in period.

 

3. Liquidity: PNB MetLife Century Plan generally has a lock-in period of 5 years. However, you can partially getting a money back from the first year onwards, subject to policy terms and conditions. Public Provident Fund (PPF) has a lock-in period of 15 years, but partial withdrawals are permitted from the 7th year onwards.

 

4. Tax Benefits: Both PNB MetLife Century Plan and Public Provident Fund (PPF) offer tax benefits. Premiums paid towards PNB MetLife Century Plan are eligible for tax deductions under Section 80C of the Income Tax Act. Also the Maturity is tax free if the annual premium is less than Rs 5 Lacs on the other hand PPF contributions are also tax-deductible under the same section, and the interest earned and maturity proceeds are tax-exempt.

 

Since Public Provident Fund (PPF) is annually compounded, the longer you stay invested in Public Provident Fund (PPF) the more benefit you can avail. To comprehend how the force of intensifying helps you out with regards to PPF computation, how about we consider the accompanying table which shows the chief contributed, the PPF interest earned, and the Public Provident Fund (PPF) maturity value for 15, 20, and 30-year tenures.

 

In this PPF calculation example, we have assumed that the annual investment amount is Rs. 10,000 and the PPF interest rate is 7.1% per annum (the current PPF interest rate for Q1 of FY 2023-24 is 7.1%).

 

The above example shows the power of compounding when investing in PPF – your maturity amount increases from Rs. 2.9 lakh to Rs. 12 lakh just by investing Rs. 1.5 lakh more over a 15-year period as long as you stay invested in your PPF account for 30 years instead of 15 years.

 

It's important to note that selecting between PNB MetLife Century Plan and Public Provident Fund (PPF) depends on your financial goals, risk appetite, and investment preferences, PNB MetLife Century Plan can be a suitable choice. However, if you prefer a secure and fixed-income instrument with tax benefits, PNB MetLife Century Plan might be a better option. It's advisable to consult with a financial advisor who can assess your specific needs and guide you towards the most suitable investment choice.