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 –
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 –
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.
LIC’s term insurance premium calculator has various benefits which includes the following –
To calculate the premiums of LIC’s term insurance plans, individuals can follow the below-mentioned steps –
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’.
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 –
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 –
Age of the insured |
30 years |
Gender |
Male |
History of smoking |
None |
Name of the plan |
LIC’s Anmol Jeevan II |
Sum Assured |
INR 20 lakhs |
Policy tenure |
20 years |
Premium paying frequency |
2Annual |
Premium payable |
INR 7528 (including GST @18%) |
Example 2 –
Age of the insured |
35 years |
Gender |
Male |
History of smoking |
None |
Name of the plan |
LIC’s e-Term Plan |
Sum Assured |
INR 40 lakhs |
Policy tenure |
30 years |
Premium paying frequency |
Annual |
Premium payable |
INR 14,490 (including GST @18%) |
LIC’s term insurance plans allow premium payments in different frequencies. Policyholders can pay premiums annually, half-yearly, quarterly or monthly as per suitability.
Yes, there are ways to lower the premium calculated. These ways include the following –
Yes, the premium paid for life insurance policies are allowed as a tax-free deduction from your taxable income. Premiums paid up to INR 1.5 lakhs can be claimed as a deduction under Section 80C of the Income Tax Act.
You can pay LIC premiums through cash, cheque, demand drafts, net banking, NEFT, mobile wallets, UPI or any other digital mode.
No, even if the insured individuals are of the same age, the premium payable might differ. The amount of premium for both the individuals would depend on the plan selected, the sum assured chosen, their medical history, policy term chosen, etc.
Different life insurance plans have different premium paying tenures. If the plan has a regular premium paying option, premiums are payable throughout the term of the policy. For limited premium paying modes, premiums are payable for a specified number of years which is lower than the policy tenure. In case of single premium plans, a lump sum premium is payable at once when the plan is bought. In LIC’s term insurance plans, regular premiums are payable.
In case of term insurance plans, if the premium is not paid for the specified duration, the policy lapses. In case of a lapse, the coverage stops and the policyholder loses the premiums paid earlier.
Premiums vary across different term insurance plans because the benefit structure of different plans is different.