After buying an insurance policy from LIC of India, be it a life insurance or a health insurance plan, you need to pay the premium every year. To continue enjoying the benefits of the plan and to avoid the plans from lapsing, it is important to pay the premium on time. LIC premium payment can be done in 2 ways – online or by visiting the LIC branch office. LIC online premium payment can be done via different modes – net banking, credit card, debit card, etc.
LIC of India Premium
Now, let us understand premium and why it is important to make premium payment on time. A premium is the cost paid to the insurance provider to get the financial coverage for various risks. LIC of India premium can be paid monthly, quarterly, annually or semi-annually. Some policies also have the option of a one-time premium payment which eliminates the need of policy renewal every year. LIC premium payment can be done either online or offline. In case the premium is not paid by the due date mentioned in the policy, the plan can lapse and you might not get the coverage benefits when needed.
How to Calculate LIC Plan Premium
LIC online premium payment method is easy and hassle free. Here are the steps to calculate premium for LIC life insurance and health insurance policies.
- Visit the website of LIC of India
- Scroll down to the end of the page and click on Premium Calculator tool
- Fill in your personal details and click on Next
- Click on Quick Quote
- Now from the list of policies, select the one for which you wish to get premium estimation and hit the Coverage button
- Choose the coverage option, sum assured and policy term and click on Quote
- You will get an estimate of the premium to be paid towards the selected policy
Factors Affecting LIC Premium Calculation
LIC online premium payment can be done for all of the available plans and policies. In order to ascertain the premium amount to be paid towards any of the LIC life and health insurance policies, the following factors need to be considered:
Age of applicant: Age directly affects the premium amount. Higher the age, higher the premium and vice-versa. This is so because with age, health risks increase. This also increases the chance of filings claims under a life insurance policy, making the plan expensive. Thus, the insurance company charges higher premium from an older person. To make it simple, premium for a 34-year-old person will be higher compared to the premium for a 25-year-old, person, if we ignore other factors at present.
Gender of applicant: For a life insurance, premium is usually lower in case of females and higher for males. This is so because females have a higher life expectancy compared to males. Thus, women life longer than men. Looking at this scenario, there is a higher chance for an insurance company to provide death benefits for males and thus, his premium is higher.
Life cover (sum assured): The sum assured is the coverage amount or the death benefit the family gets on the sudden demise of the policyholder. Thus, higher the sum assured, higher the premium amount and vice-versa. A life cover of Rs. 50 lakh will need a higher premium amount than a cover of Rs. 25 lakh.
Policy term chosen: A policy term is the duration for which the policyholder gets the coverage against the risks. So, if the policy term is longer, the premium amount will be higher.
Smoking habit: Smoking habit plays an important role in deciding the premium amount for a life insurance because of the health risks related to smoking. Thus, a higher premium for smokers and a lower premium for non-smokers.
No. of Lives Insured: In health insurance plans by LIC, there are two options available, i.e. individual plan and family-floater plan. Premium for a family floater plan in numbers will be higher than for an individual plan but when we compare it in terms of lives insured, a family floater health plan will be more cost effective.
LIC Premium Payment Modes
LIC of India provides various options to choose from in order to make premium payments.
LIC Website: Net banking, credit card, debit card
Via Franchisee: Suvidha Infoserve, Easy bill pay, AP online & MP online (online government portal for residents of Andhra Pradesh and Madhya Pradesh), Paytm, Instapay and CSC
Via Official Merchant: Premium Point, Life Plus, Retired LIC Employee collection
Via Authorized Banks: Axis Bank and Corporation Bank
Bill Pay, ATM and National Automatic Clearing System (NACH)
How to Make LIC Online Premium Payment
Follow the steps mentioned below for online payment
- Visit the official website of LIC of India.
- From the Online Services side banner, click on Pay Premium Online
For Registered Users:
- You will be taken to a new page where you need to choose ‘Through Customer Portal’.
- Here, you need to login.
- Select Role (Customer), enter User ID/Email/ Mobile, password and date of birth.
- Submit the details by clicking on Sign In.
- A new page will open, click on ‘Pay Premium Online’ under ‘Premier Services’.
- Now you will be redirected to the online premium payment portal.
- Select the mode of payment and make the payment.
For Non-registered Users:
- Click on Pay Direct.
- A new page will open, select Renewal Premium/Revival or Advance Premium Payment, whichever is applicable in your case.
- Here, you will be given quick information about how to go about the premium payment. Click on Proceed.
- There will be a three-fold form.
- Enter policy number, instalment premium amount, etc. for customer validation and submit the same.
- Then you will be required to give certain important details about the premium to be paid.
- Lastly, make the payment after selecting one of the mentioned methods – net banking, credit card/debit card.
- Receipt of the premium paid will be sent to your registered email-id. An SMS about it will also be sent to your registered mobile number.
Offline Premium Payment Method for LIC policies:
If online method is not working for you or you prefer the traditional way of payment, visit the LIC branch office and pay your premium directly at the branch. This can be done via cheque or through debit or credit card.
How to Download Payment Receipt
In order to download the premium receipt, you need to login to the LIC online portal. Steps for the same are mentioned below:
- Visit the official website of LIC of India.
- Click on Customer Portal and login using the username and password.
- You will be taken to LIC e-Services.
- On the left of the page, click on Online Payment Receipts under Premier Services.
- Select the financial year for which you need the receipt.
- From the list thus generated, click on the one you require and save or print the receipt as per your need.
How to Revive a Lapsed LIC Policy
In order to revive a lapsed policy, i.e. to activate a policy that has been deactivated due to non-payment of premiums on time, you need to follow the steps mentioned below:
- Visit the branch office of LIC of India and carry the policy document and your ID proof (Aadhar card, PAN card, ration card, etc.) and get a revival quote. This revival quote will be the sum of all the premiums due for your policy.
- Submit your recent medical report if you fall under the age group (usually above 45 years).
- Pay the penalty along with the revival quote directly at the branch.
Tax Benefits of LIC Online Premium Payment
- LIC online premium payments fetch you tax deductions as per the rules set under the Income Tax Act, 1961
- You can claim deductions in income tax under Section 80 C
- There is a limit of Rs. 1.5 lakh, i.e. deduction amount can go up to Rs. 1.5 lakh
- Premium paid should be less than 10% of the sum assured to avail tax redemption
Let us look at some important points to keep in mind while taking care of premium payment.
- As per the recent guidelines by the IRDAI, advance payment can only be done 30 days before the due date. On advance payment, you may get some discount on the premium amount
- Premium can be paid via cheque, cash or demand draft at the authorised banks
- For a term insurance policy, advance payment can only be done 15 days prior to the due date
- For all other policies, advance payment period can go up to 30 days
- No time lag from the payment date to obtain premium receipts when paid online
- LIC premium payment services come free of charge for the customers