LIC Term Insurance Premium Calculator

LIC is a leading life insurance company which was formed in the year 1956. The company enjoyed a monopoly position in the life insurance segment till the year 2000. Today, the company enjoys the largest share of the life insurance market and has millions of customers putting their trust in it. LIC offers a range of life insurance products to cater to its customers’ insurance needs. Term insurance is a type of life insurance policy offered by LIC under which the company sells three distinct plans –

• LIC’s Jeevan Amar
• LIC’s Anmol Jeevan II
• LIC’s e-Term

Term insurance plans offered by LIC provide a comprehensive coverage at very affordable premium rates. Customers can, therefore, invest in a high sum assured without worrying about unaffordable premium rates. Moreover, there is an online premium calculator which helps individuals to calculate the premiums of term insurance plans offered by the company.

Let’s understand what the premium calculator is and how it works –

What is LIC’s Term Insurance Premium Calculator?

LIC’s term insurance premium calculator is an online tool which allows individuals to calculate the premium payable for the policy that they want to buy. Individuals are required to enter relevant information in the calculator and the calculator calculates the premiums based on the information provided.

Benefits of LIC’s term insurance premium calculator

LIC’s term insurance premium calculator has various benefits which includes the following –

• The calculator is easy to use. By entering some simple details, the exact amount of the premium is calculated for a term insurance plan.
• The calculator helps individuals assess the affordability of the premium payable for the term insurance plan that they want to buy. By calculating the premium in advance, individuals can arrive at the most affordable premiums for their term insurance plan.
• The calculation done by the calculator is correct. This ensures that there is no ambiguity in the premium calculated and that the premium gives a correct picture of the cost of a term insurance plan.

How to calculate term insurance premiums using the calculator

To calculate the premiums of LIC’s term insurance plans, individuals can follow the below-mentioned steps

• Individuals should visit LIC’s official website which is https://www.licindia.in/
• On the home page, the premium calculator tool should be selected
• When the individual clicks the premium calculator tool, he/she would be directed to a new page
• On the page, the following details would have to be provided:
  • Basic details – under this the following details would have to be provided:
    • First name
    • Middle name
    • Last name
    • Date of birth (in DD/MM/YYYY format)
    • Gender
    • Mobile number
    • Email id

After the basic details are entered, the individual would have the choice to get a quick quote or compare the quotes of multiple policies.

To proceed to calculate the premium, the individual should select ‘Quick Quote’.

• Once ‘Quick Quote’ is selected a new page is opened in which the different plans are shown. The individual can select the desired term plan to proceed with the premium calculation.
• Once the plan is selected, the individual should select ‘Coverage’ at the bottom of the page to proceed to the next page where the coverage details are to be provided.
• In the next page, there are two options. The individual can select ‘Coverage’ to calculate the premium for a specific sum assured level. If ‘Coverage’ is selected, the sum assured, policy term and details of tobacco usage would have to be mentioned. Alternatively, if ‘Premium’ is selected, the coverage amount can be calculated at a specific amount of premium. If ‘Premium’ is selected, the amount of premium, policy term and premium payment frequency should be stated.
• After providing the ‘Coverage’ or ‘Premium’ related details, the individual should select ‘Quote’.
• In the next page, the premium details would be shown for the details entered in the previous pages.

Factors affecting term insurance premiums

LIC’s online premium calculator calculates the premium for the chosen term insurance plan based on the details entered. Besides the personal details and the plan details, there are different factors which affect the premium of a term insurance policy.

These factors include the following –

1. Age of the insured – age affects the risk of death of an individual. The older the individual is the higher would be the risk of death. That is why term insurance premiums depend on the insured’s age. Premiums are high at higher ages and vice versa
2. Sum assured – the level of coverage determines the risk undertaken by the insurance company. It, therefore, affects the premium rate. The higher the sum assured the higher would be the premium and vice versa
3. Term of the policy – longer the selected policy tenure lower would be the premium. This is because with a longer tenure, the insurance company gets more time to collect the cost of insuring the individual’s life. As such, the premiums are lowered
4. Smoking history – smoking increases the risk of death and is, therefore, considered a physical hazard. Smokers are, thus, charged a higher premium than non-smokers.
5. Gender – female lives have a lower mortality rate than male lives. As such, premiums for females are lower than males.
6. Premium paying frequency – if premiums are paid in monthly mode, the administrative costs of the company increases. That is why monthly premiums are a tad bit higher than annual or half-yearly premiums.
7. Medical history – if the insured suffers from any medical problems, the risk of death would increase. That is why in case of adverse medical history, the premium is loaded with an additional amount for covering the additional risk.
8. Family history – if the insured’s family has a risk of genetic diseases, the insured would also be exposed to hereditary ailments. This would increase the risk of death. To compensate for the high mortality risk, premiums are increased for individuals having a family history of diseases.
9. Occupation – the nature of occupation of the insured also affects the premium rate. If the insured has a dangerous occupation which increases the risk of death, premiums would be high. Dangerous occupations include aviation, mining, etc.

Based on the above-mentioned factors, the actual premium would be calculated.

Examples of premium calculation

Here are some examples of how LIC’s premium calculator helps in calculating premiums for LIC’s term insurance plans –

Example 1 –

Example 2 –