Why should I buy a life insurance product? This is a question that would have crossed the mind of a lot of us. The simple answer to the question is that it would handle the different contingencies that life can throw at us. Life can be quite unpredictable, and your life is the single biggest asset that you have. Therefore, getting coverage against unforeseen scenarios such as accidents, death, disability etc. would make sense.
And when it comes to buying a life insurance policy or any insurance policy for that matter, the premiums play a crucial role. Insurance companies have come a long way when it comes to providing more customized and easy to use policies. One such alteration over the years has been the premium. And LIC being a pioneer of the insurance industry, you can expect the same.
Now, policyholders have the option of paying the premium in different modes and installments as per their convenience. You can stick to the normal cycle of paying the entire premium as an annual amount. Or you can change it to half-yearly, quarterly or monthly installments. Of course, it depends on the discretion of your insurer.
Yet, one important aspect of any insurance is keeping it active. The simplest way to do so is by paying your premiums on time. If you miss out on premiums it can impact your policy. And in the worst-case scenario, your policy might even lapse. That is a situation, you as a policyholder would never like to be in.
The amount of premium that you have to pay for a policy depends on various factors. These include the type of policy that you have opted for, the term of the policy and the features and benefits on offer. A simple way to know the premium of your policy is to use the LIC premium calculator.
As one might guess from the name, an LIC premium calculator helps you find out the approximate premium that you might end up paying for your policy. The LIC premium calculator doesn’t stop at providing you with the premiums for the policy, rather goes one step ahead. The online tool also helps you out with other technicalities of the policy such as the sum assured, the frequency of paying premiums, the tenure of the policy and so on. Most of the major insurers across the country are offering such calculators to help you decide more efficiently. And it doesn’t come as a surprise that LIC doesn’t want to be behind. The LIC premium calculator will help you understand the details of the life insurance policy like never before. And all this by simply logging to the website and providing some basic information. You need not reach out to any insurance agents or speak with an LIC representative.
The LIC premium calculator expects some basic information from your end. Once you provide these to the tool, it offers the following information for you.
The information that the tool expects is minimal and would take less than a minute for you to fill up. The LIC premium calculator then displays an approximate premium for the policy that you want to buy. One must note, that the price could be indicative and not the final price. Should you be happy with the details and premium, you can proceed with the purchase where LIC will provide you with complete details.
To understand a policy, it might take quite some time for a potential policy buyer. But the internal workings are a bit more complicated. Should you want to understand them and try out the premium calculations on your own, it will take quite some time and effort. And there are a few fundamentals that you might not even have direct access to.
Thus, using the LIC premium calculator tool will help you overcome that and eventually buy a policy that is tailor-made for you. Let us consider a quick example of how the calculator works. Puneet is a sales representative at a car dealership and wants to buy an endowment plan for his future. Here are the details.
Plan: Endowment plan
Sum Assured: INR 10,00,000
Puneet’s Age: 30
The term of the policy: 15 years
Rider: No
Puneet provides the above information, which states that he is looking for an endowment plan that has a sum assured of INR 10,00,000. His current age is 30 and he wishes to pay the premiums for the next 15 years. Puneet does not want any riders or add-ons for his endowment plan. Once he enters these details and clicks on the calculate button, LIC premium calculator offers the remaining details.
| Frequency | Premium (INR) |
|---|---|
| Yearly | 26,203 |
| Half-yearly | 13,238 |
| Quarterly | 6,688 |
| Monthly | 2,229 |
The whole intention of using the LIC premium calculator is to know the approximate premium amount for a policy that you wish to buy. Here is a quick guide to help you use the calculator tool.
It is as simple as it sounds. You merely need to provide three inputs from your end and the LIC premium calculator does the rest. The only thing that one must be cognizant about while using calculators is the authenticity. There are a lot of websites which offer LIC premium calculators. Ensure that you use the tool from LIC’s website only. This will help you avoid any confusion and get a quote that is as close to actuals as possible.
How to calculate LIC premium online?
To calculate your LIC premium amount online, you just need to visit LIC’s website. You can search for the premium calculator tool on the website. The online tool will expect some basic details from you such as the sum assured that you are looking for, your age, a plan and the number of years that you wish to pay premiums for. Once you key in all these details, the website will return the premiums that you have to pay. Thereby, aiding you in the decision-making process.
How is surrender value of LIC calculated?
Though it is not recommended, you can still proceed with policy surrender in the case of an emergency. In order to surrender, you must have paid premiums for at least 3 years. The surrender value is usually 30% of the premiums that you have paid till date, excluding the first year.
For example, if you have a policy for which you pay a premium of INR 10,000 for four years, the total premium paid is INR 40,000. Excluding the premium for the first year, you will receive 30% of INR 30,000 i.e. INR 9,000 as surrender value. Also, to surrender a policy you must visit the branch from which it was purchased.
Is the LIC premium calculator value the final price?
No. The premium amount that the calculators provide you is only approximate. In order to get the exact values, you must reach out to LIC once you finalize the policy. The premium calculator might not always account for certain fees or applicable taxes. A potential buyer must remember, that these tools are meant to make the policy buying process a bit easier. Thus, it doesn’t necessarily offer the final price of a policy, but a price that is as close to actuals as possible.
Can I buy the policy from the calculator?
No. The LIC premium calculator tool will only help you to get a hold on the potential premium prices that you might have to pay. Should you be happy with the premiums and other policy details, you can proceed with buying the policy either online or do it in a more traditional way.
Can I compare prices?
Yes. The LIC premium calculator allows users to compare quotes from different plans or just check the quotes from a single plan and decide for themselves. You can either choose the sum assured as the basis of calculation or the premium amount that you are willing to pay as the base.
Are there any charges for using LIC calculator?
No. There are no charges applicable for using the LIC calculator.
Can premiums for LIC life insurance be paid in cash?
Yes, premiums can be paid in cash at the cash counter of any LIC branch office.
What are the methods to pay premiums through LIC’s website?
The different modes by which premiums can be paid through the website of LIC are - net banking, debit card, credit card, UPI and wallet.
What factors are taken into consideration while determining LIC life insurance premiums?
Premiums for a life insurance policy are ascertained after factoring in the sum assured, age of the life assured, type of coverage, policy term and riders (if any).
What are the tax benefits that can be claimed for LIC life insurance premiums?
Policyholders can claim tax deduction under Section 80C of the Income Tax Act, 1961, for the premiums paid toward a life insurance policy. The maximum deduction that can be claimed under this section is Rs. 1,50,000 during a financial year.
