An important aspect for any insurance policy is its affordability, and the premium amount for that plan is the best measure of that. Premium is the price you pay to get the coverage from the insurance policy. In order to get an estimate of the premium for an LIC insurance policy, it is advisable to make use of LIC premium calculator, an online tool that calculates the premium based on various factors.
Table of Contents:
What is LIC Premium Calculator?
LIC provides various life and health insurance plans. You should study and compare various policies before understanding which policy works best for you and the premium is an important deciding factor here. This calculator is a handy tool available on the company’s website that is designed to know the approximate value of the premium amount one has to pay for the insurance policy chosen.
Details Required for Using Premium Calculator
To calculate the premiums for various LIC policies and plans, you will have to provide the following details:
|Plan Details||Personal Details|
|Life Cover Required||Name|
|No. of lives to be covered||Date of Birth|
|Calculation Basis (Premium/Coverage)||Gender|
|Policy Term||Mobile Number|
|Premium Payment Term||e-mail ID|
Factors Affecting LIC Insurance Premium Value
Certain factors play a pivotal role in deciding the premium value. You should be aware of these points so that you can take care of these risks while buying a life insurance plan.
Sum Assured: This is the sum the insurance company pays to the nominee in case of the sudden demise of the policyholder. A higher sum assured will translate into a higher premium. On the other hand, with a lower sum assured, your premium will definitely go down.
Age: Age is another factor which contributes to premium calculation. If you are young, say 30 years old, your premium would be lower compared to that for an insurance for a 45-year-old person. This is because a young person has more life expectancy than an old one, thus delaying the claim.
Gender: Females have a higher life expectancy rate compared to males. This is not a myth but a proven biological difference in the anatomy of female bodies along with the difference in lifestyle and thus, the premium for a female is lower compared to that for males.
Smoking Habits: If you smoke, you will pay a higher premium for your life insurance policy. This is so because smoking increases the risk to various health problems. This in turn increases chances of making frequent claims which is not a very favourable situation for insurance companies and thus they charge you more.
Policy Term: This is the duration of the insurance policy. If the term is higher, the premium will be higher and if the term is short, the premium will be lower.
LIC Insurance Premium Calculation
Let’s understand how the factors stated above change the premium amount for both LIC life insurance plans and LIC health insurance plans:
1. Premium Calculation for LIC Life Insurance Plans
Plan: LIC Term Plan (Amulya Jeevan II)
Age of applicant: 30 years
|Sum Insured (in Rs.)||Policy Term||Annual Premium(in Rs.)|
|50 lakh||30 years||12,500|
|1 crore||30 years||25,000|
|50 lakh||35 years||14,600|
|1 crore||35 years||29,200|
- Premium amount is the same for both male and female applicants
- Premium amount is the same for both smoker and non-smokers
Age of applicant: 40 years
|Sum Insured (in Rs.)||Policy Term||Annual Premium (in Rs.)|
|50 lakh||20 years||19,400|
|1 crore||20 years||38,800|
|50 lakh||25 years||22,900|
|1 crore||25 years||45,800|
- Premium amount is the same both male and female applicants
- Premium amount is the same for both smoker and non-smokers
2. Premium Calculation For LIC Health Insurance Plans
Plan: LIC Health Plan (Jeevan Arogya)
Age of applicant: 35 years
Policy Term: 45 years
|Sum Insured (in Rs.)||Gender||Individual or Family Floater||Annual Premium(in Rs.)|
|2 lakh||Male||Family (1+1)||8,467|
|2 lakh||Female||Family (1+1)||8,062|
|4 lakh||Male||Family (1+1)||12,319|
|4 lakh||Female||Family (1+1)||11,509|
Age of applicant: 45 years
Policy Term: 35 years
|Sum Insured (in Rs.)||Gender||Individual or Family Floater||Annual Premium (in Rs.)|
|2 lakh||Male||Family (1+1)||9,944|
|2 lakh||Female||Family (1+1)||9,127|
|4 lakh||Male||Family (1+1)||15,275|
|4 lakh||Female||Family (1+1)||13,641|
How to Use Premium Calculator
Here are the steps you need to follow to calculate the premium using the LIC online premium calculator.
- Click on “Premium Calculator” on the LIC website
- Enter the basic details on the page of the LIC premium calculator. Provide the required details
- Click on the “Next” button to reach to a new page
- Choose one of the options – i.e. “Compare Quotes” or “Quick Quote”
- Provide all the required details and click Submit
- Select the option of ‘Rider’ if you want to include them, and then submit
- Details will be displayed on the screen
Following points must be taken into consideration while using the tool:
- You do not need to be a registered customer of the company or an LIC policyholder to avail this service
- The premium calculated is not the exact value but an indicative one
- Make sure you provide the correct information under all the fields so as to get the closest premium estimation
Advantages of Using LIC Premium Calculator
- LIC premium calculator is an extremely easy-to-use tool which doesn’t require any complex steps
- The LIC premium calculator is a free tool available on the LIC website that helps to know whether the policy is affordable in terms of premium to be paid
- This premium calculator can be used for as many times as you want
- You can compare the plans of various insurance providers to buy the one as per your need and requirement
Q1. How important is my health state while calculating the premium?
Your health is inversely proportional to the premiums you are supposed to pay towards the policy. This mean that the premium for a healthy person will be lower and for a person with health issues like diabetes, premium is bound to go up.
Q2. Can I buy an LIC policy online?
Yes, you can buy an LIC policy online. Visit the company’s official portal www.licindia.in/ to purchase an LIC insurance policy online.
Q3. How to pay LIC life insurance premium online?
Based on the insurance policy you have chosen, you have to pay your insurance premium on an annual, half-yearly, quarterly or monthly basis. The simplest way to pay your insurance premium is to visit the LIC branch. However, there are other methods to pay your insurance premium that are more convenient and time-saving., viz. cash, cheque, demand draft, credit card, debit card, net banking, electronic clearance system, etc.