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LIC Online Payment Process

The Life Insurance Corporation of India is one of the oldest and most trusted insurance providers of India. Back in the days, it was the only insurance provider in India, hence it has catered to multiple generations by providing insurance to millions of Indians. Recently, LIC has provided numerous channels for providing effective services including online payment as well.

LIC Premium Payment Process

Since there are so many channels, we have segregated the options in different tables for ease of understanding.

The online channels include the following:

LIC WebsiteAuthorized BanksFranchiseesOfficial Merchants
  • Net Banking
  • Debit Card
  • Credit Card
  • Axis Bank
  • Corporation Bank
  • AP Online
  • MP Online
  • Suvidha Infoserve
  • Easy Bill Pay
  • Premium Point
  • Life-Plus (SBA)
  • Retired LIC Employee Collection

The offline channels include the following:

Bill PayATMNACH

How to make LIC Online Payment?

For Registered Users

  • Step 1: If you are a registered user with a login ID and password, simply go to the official website of LIC and select the tab - Customer Portal.

  • Step 2: Next select the Registered User option and you will be directed to the LIC login page.

  • Step 3: On this page, select the ‘Through Customer Portal’ option.

  • Step 4: Next, login in with your user ID and password and sign in.

  • Step 5: Now, you will be directed to the customer portal page where you need to select the ‘Self/Policies’ option. This option will enable you to view your policy details.

  • Step 6: Next, select the option - Renew LIC Policy/Due Date.

  • Step 7: Next, you need to select the Pay Premium tab.

  • Step 8: Once selected, you will be directed to the online payment portal. Next, select the mode of payment - Credit/Debit card or internet banking.

  • Step 9: Do the needful and congratulations! You have successfully made your LIC premium payment.

  • Step 10: In case you want more details, you can check the registered email and download your premium payment receipt.

For Non-Registered Users

  • Step 1: If you do not have a registered user ID and password, you need to visit the official website of LIC and select the ‘Pay Premium Online’ tab and choose the Pay Premium Online Option.

  • Step 2: Post selection, you will be taken to a new page with the following options - Pay Direct (Without login) and Through Customer Portal.

  • Step 3: Next, select the Pay Direct (Without login) option. This will take you to the payments page with the following option - Renewal Premium/Revival option.

  • Step 4: Post selection, you need to fill the Customer Validation Form with the following details - Name, DOB, email id, policy number, instalment premium and registered mobile number. Once completed, submit the same.

  • Step 5: Next, you will be directed to the online payment gateway portal where you need to make the payment via - debit/credit or net banking.

  • Step 6: Next, make the payment and congratulations! You have successfully made your LIC premium payment.

  • Step 7: In case you want more details, you can check the registered email and download your premium payment receipt.

LIC Online Payment Channels - LIC Website

LIC of India has established its very own Online Payment Gateway in order to help customers pay their policy premium online. Mentioned below are a few points to remember below in case you intend to use the Online Payment Gateway.

  • You can only pay premium for your policy if it is currently in-force and active on an annual, half-yearly, quarterly and monthly basis.

  • You can make the premium payment via credit/debit and net banking even if you are living outside India.

  • There are no hidden or extra charges for this mode on online payment service.

  • All major banks support the online mode of payment.

  • You can download payment receipt from the portal itself and by your registered email id.

  • Note, this premium payment can only be done 30 days before the last date.

  • The payment of premium can only be done 30 days before the due date till the time the policy is active and in-force. For term insurance, the advance payment period allowed is 15 days.

  • Failure to make the premium before the due date will attract a late penalty @8% (minimum of ₹5).

  • You cannot pay the premium payment for any upcoming financial year.

Authorized Banks for LIC

LIC has partnered with Axis and Corporation Bank to render the service of premium payment. You, as a policyholder of LIC, can successfully make premium payment at any of the bank branches of Axis and Corporation Bank. Ensure you go through the following points before making a successful premium payment.

  • The premium payment at either Axis or Corporation bank branches can be made either in cash or via a cheque.

  • You can only make premium payment for policies which are currently in-force and active.

  • This premium payment can only be done 30 days before the due date for regular life insurance policies. For term insurance policies, the grace period is 15 days before the due date.

  • ULIP and Health policies are excluded from this mode of payment.

  • Failure to make the premium before the due date will attract a late penalty @8% (minimum of ₹5).

  • You cannot pay the premium payment for any upcoming financial year.

  • Once you have paid the premium, the respective bank will issue an acknowledgement slip.

LIC Franchisees/Authorized Collection Centers:

LIC has also partnered with various government bodies and agencies across India to facilitate premium payment. The four respective providers are:

  1. AP Online - The official portal for the Andhra Pradesh government.

  2. MP Online - The official portal for the Madhya Pradesh government.

  3. Suvidha Infoserve - It provides bill payment services in rural areas.

  4. Easy Bill Limited - An alternate bill payment service system.

Before you make the following payment via these channels, do read the following pointers below.

  • You can locate the nearest collection centre from the official website of LIC.

  • The premium can be made only in the form of cash.

  • Payment can only be made for policies which are currently active.

  • This service can be availed for free without the need for paying any extra charges.

  • If the collection centre is a government owned entity, the premium can be paid only in the specific state.

  • Failure to make the premium before the due date will attract a late penalty @ 8% (minimum of ₹5).

  • You cannot pay the premium payment for any upcoming financial year.

  • Once you have paid the premium, the respective bank will issue an acknowledgement slip.

LIC Payment Online Using Credit/Debit Cards

You can also make your premium payment with your debit or credit card. This process is conducted online with the help of IDBI Bank’s portal. Follow the mentioned steps to initiate the same.

  • Step 1: Start by logging into LIC’s official payment gateway and select the option which says IDBI. Next, chose the type of Debit/Credit card and enter the premium amount.

  • Step 2: Next, you will guided to a new portal where you are required to enter the details of your card - expiry date, CVV2/CVC2 number, name, email ID and cell number.

  • Step 3: Next, you will be given two options to complete the transaction - OTP or ATM pin.

  • Step 4: Select your preferred choice of payment and click on pay. Post payment, you will receive an acknowledge receipt regarding the payment made on your registered email id.

LIC Payment Through Agent/Merchant

You can also make premium payment via LIC agents/merchants who collect premiums on the behalf of LIC. These authorized personnel include premium agents, Senior Business Associates (Development Officers), and Retired LIC Employees. Before you make the following payment via a merchant/agent, do read the following pointers below.

  • The collection of premium by authorized agents/merchants can be done for ULIP policies as well.

  • The premium paid to a Senior Business Associate will be done on a real time basis via LIC portal. They also have the authority to issue policy status report, application forms, IT certificates and ULIP statements.

  • This premium payment can also be made by issuing a cheque to any of three authorized agents i.e. retired LIC employees, SBAs and premium point collectors/collection agents.

  • Advance premium payment can be done 30 days before the last day of payment. For term plans, the advance premium payment period is 15 days.

  • Failure to make the premium before the due date will attract a late penalty @ 8% (minimum of ₹5).

  • You cannot pay the premium payment for any upcoming financial year.

  • There is no service charge levied for undertaking the services provided by the three authorized personnel.

LIC Payment Through Paytm

Recently, mobile payments app Paytm has also facilitated with LIC to help customers pay their premiums via mobile banking.

To begin with, download the Paytm app and register your account. When you open the mobile application, you will see a number of icons representing a category for payment. Select the one which says ‘Insurance’ and choose LIC. Next, you will have to enter and submit your policy number. Next, select the mode of payment and complete the transaction. Post confirmation, you will get a Paytm notification that your policy has been successfully renewed.

Grace Period for LIC Premium Payment

There always comes a time when you might miss out on a single premium payment. In such a situation where you have not paid an LIC premium within the due date, LIC will give you a grace period for making payments without the payment of interest on the premium. For policies with a monthly mode of premium payment, it is 15 days from the due date.

When the mode of premium payment is quarterly, half-yearly or even yearly, the grace period is one month from the date.

Income Tax Benefits

Mentioned below are the IT benefits as per the different sections.

  • Section 80C - The premium paid is eligible for deductions under Sec 80C of the Income Tax Act, 1961.

  • Section 80CCC - If you have invested in an LIC plan for receiving pension, the amount deposited is eligible for tax deduction.

  • Section 80D - If you have invested in a health insurance plan or rider for yourself or family, you can claim a deduction of up to ₹25,000 as per Sec 80D.

  • Section 80DDD - A deduction of ₹75,000 is allowed if a certain amount is invested in an LIC scheme for maintenance of a handicapped dependent. The amount is ₹1,25,000 if the handicapped dependent has a severe disability.

FAQs

How LIC premium can be paid online?

You can pay your LIC premium online from the official website of LIC online gateway portal. The mode of payment can be done via debit/credit or net banking.

Can I pay LIC premium online after due date?

Yes, you can pay your LIC premium online after the due date, but it will attract a late penalty fee @ 8% (minimum of ₹5).

How can I surrender my LIC policy online?

You cannot surrender an LIC policy online. You can only surrender an LIC policy at your servicing branch. A servicing branch is the one where you purchased the respective policy.

Can we pay LIC premium through Paytm?

Yes, Paytm is one the official authorised mobile banking agent which allows policy holders to pay their premiums online. You simply need to select the insurance payment icon on Paytm and submit your policy number. Once paid, you will get a transaction complete message via Paytm notification.

What is reduced paid up in LIC?

A reduced paid up in LIC means that the policy has acquired a paid up value. It is a reduction in sum assured when you do not pay the premium for a traditional participating policy.

Can I pay LIC premium by Cheque?

Yes, you can pay via cheque, cash or online for making an LIC premium payment at any of the authorised branches of LIC.

How is the surrender value of LIC calculated?

A surrender value of an LIC policy is the amount payable to the policyholder by LIC, if he/she has decided to exit the policy before the maturity period. A policy acquires surrender value only after three full premium paid years. In case of a regular premium policy, the surrender value is 30% of the basic premiums paid. In case of a single premium policy, the surrender value is 90% of the premium paid.

Can we pay LIC premium before due date?

Yes, the premium can be paid 30 days before the due date.

What is the late fee for LIC premium?

Failure to make the premium before the due date will attract a late penalty @8% (minimum of ₹5).

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