Banking or Insurance? Which one is the better career option? This is one of the most discussed topics among the graduates. If you are torn between the two then there are several facts that you must consider.
Don’t go by what people say about insurance and banking sectors – do your own research.
The economy of India is growing at a rapid rate. Banking and Insurance sectors are also developing very fast. If you have the right skill, both these fields offer job satisfaction and a good salary.
Bank PO and LIC-AAO have similar paper pattern. So, generally, aspirants attempt both examinations. But what if you got selected in both? Which one will be the better option?
To ease the confusion arising in the minds of the aspirants to choose between Bank PO and LIC AAO, we've come up with this article.
What they stand for –
LIC AAO - Life Insurance Corporation - Assistant Administrative Officer
Bank PO – Bank Probationary Officer
Bank PO vs LIC - Nature of the Industry
As we all know that, banks promote saving and lending (borrowing) among the people and helping industries with capital whereas, LIC promote life insurance to the customer during and after their lifetime.
Assistant Administrative Officer deals with external customers much lesser than Bank Officer. In LIC, one has to regularly deal with internal customers called agents.
LIC vs Bank PO - Mode of Exam
Despite having many differences, there are many similarities found in the Syllabus and Exam Pattern of Bank PO and LIC AAO. For Bank PO, various exams are conducted by the IBPS, SBI, Other Banks. LIC separately recruits the AAO. The recruitment exam is conducted online and it is a tier-wise selection process concluding with interview or personality test.
Difference Between Bank PO and LIC – Salary
Exactly! Salary is one the best way to compare before joining any industry. Job satisfaction greatly depends upon the salary. “Salary is the motivation factor to work”. Depending on the organizational policies and nature of industry, various allowances, rewards and benefits are awarded to banking and insurance sector employees.
Salary and Emoluments in Bank PO:
| Bank |
Salary |
| State Bank of India | 41,000 – 42,000 PM |
| Nationalized Bank |
36,000 – 38,000 PM |
| Regional Rural Banks | 36,000 – 37,000 PM |
Salary of LIC AAO:
The basic pay of AAO is Rs. 32,000 – 35,000 PM.
Note - Salary is to be revised after the govt agreed for the 15% hike in LIC AAO. So, after the revision the in-hand salary will increase to approximately Rs. 42,000 – 45,000 pm including the city compensatory and house rent allowances.
Bank PO vs LIC AAO – Difference in Job Profile
Role and Responsibility of AAO:
Auditing and analyzing the existing policies for misleading facts and errors.
Interaction with clients and resolving their queries.
Claim processing like filling, management and settlement.
Planning new scheme/policies for the company to either replace the existing one or strengthen it.
Communicating and coordinating with other departments on issues related to policies, claim, settlements guidance etc.
If duty calls, one has to travel to the specific area.
Roles and Responsibility of Bank PO:
Provides customer services to the people who need assistance in understanding the banking processes.
Customer dealing and explain the various benefits of insurance policies, fixed deposits etc.
Perform clerical tasks like collecting cheques, manage clearance of payment, authorize transactions etc.
To know more click here – IBPS PO Job Profile
Work Pressure of Bank PO and LIC AAO
Working Days:
LIC has flexible five days/week work arrangement. On the other hand, bank employees only have the 2nd and 4th Saturdays as holidays.
Work Pressure:
Bank PO has far more work load than LIC AAO, as AAO is not expected to engage with customers to bring business to the corporation. On contrary, Bank Officers have to interact with people to bring new customers to the bank.
Hence, LIC AAO offers better and relaxed personal life. But if you want exposure, you will get it while working in banks. So, if you are looking for a real challenge, Bank PO should be the way to go.
Suggested Reading:
Bank PO vs LIC AAO – In terms of Future Growth
Now we've reached to the most daunting question – Promotion!
Promotions in LIC AAO are complex. It takes much longer time (at least 5 to 8 years) to become eligible for the first promotion because Insurance sector follows non-proactive promotion policy. The Scale is -
LIC AAO
ADM
DM
ZM
On the other hand, promotions of bank officers are faster as policies of bank ensure a steady procedure for promoting the officers at a regular time period. Bank Pos are Promoted in every two to three years on the following scale –
Bank PO
Assistant Manager
Branch Manager
AGM
GM
According to the given aspects, Bank Probationary Officers have a better prospect than LIC AAO.
LIC AAO vs Bank PO – In terms of Transfer
Both jobs are in the public sector. Hence, when it comes to the transfer, they both share common attributes in term of transfers. Officers can expect transfers in every three to five years. They are placed to the new location which may be in Rural, Semi Urban or Urban.
For LIC AAO, most of the branches are in towns and cities, while the Bank officer can be posted in rural areas as per the RBI's guideline.
So, if you want to enjoy lucrative benefits of Govt. Job in urban area. Here is the Catch! LIC AAO can offer you work-life balance with posting in a city. But if you are passionate about helping people from rural area, then you can make this happen with Bank PO.
Perks and Benefits to LIC AAO and Bank Officers
Thinking about AAO and PO Pros? Every profession has its list of Benefits and drawbacks. So starting on the positive note, let’s discuss the major advantages and benefits of being LIC Assistant Administrative Officer and Bank Probationary Officer.
Pros of LIC AAO:
| Advantages of Being LIC AAO |
| 5-days week. |
| Workload is limited. |
| Work-life Balance. |
| LTC. |
| Cash Medical Benefits. |
| Group Insurance. |
| Special allowance for passing actuarial examination. |
| Groups Personal Accident Insurance from LIC. |
Pros of Bank PO:
| Advantages of Being PO |
| Fast growth opportunity. |
| Medical Aid for self (100%) and family (75%). |
| Gratuity. |
| Home travel/leave fare concession. |
| Contribution Pension scheme/new pension scheme. |
| Loan Benefits. |
| Better Opportunities after passing DBF, JAIIB or CAIIB Exams. |
If we look at the cons, they are negligible in comparison of the benefits. Yet, work stress and dissatisfaction are the top reasons that make an employee quit these jobs. The growing industries can sometimes be very brutal. Although the organization ensures a great working environment for its employees but still no industry is perfect and so is banking or insurance industry.
In Conclusion -
For a relaxed life, better pay scale, good work location and peaceful lifestyle, choose LIC AAO as your career option.
For a versatile job profile, more exposure, better learning opportunity and systematic promotion scale, choose Bank PO as a career option.
We hope that this article will help you to make an informed choice regarding your future career and has answered some much-needed questions.
All the Best. Choose Wisely.
If we missed out on a few points, please mention those in the comments below.
You can follow us on Facebook and YouTube. Stay Tuned!
