- *T&C Applied. Returns guaranteed by the Insurer as per the Insurance Plans.
- **Returns guaranteed by the insurer
- *** Tax adjusted Returns - assuming 30% tax bracket
LIC Premium & Maturity Calculator
LIC premium calculator is a tool, which gives you an approximate amount of the premium as per the policy chosen by you and its technicalities such as premium frequency, the sum assured, age, tenure, etc. This LIC calculator is made available by the official insurers for their complete product list. For example, the LIC of India has a LIC calculator to calculate the premium for life insurance policies. Usually, the LIC premium calculator includes the following fields where you have to provide all the information:
- Name of the plan
- Applicant’s age
- Sum Assured
- Frequency of the premiums
- Tenure of the Plan
- Riders (if any)
It takes less than a minute to fill the whole form, and once you have entered all the prerequisite information and preferences, the tool will display a rough figure of the premium. The result displayed by the LIC calculator is an approximation as the insurance company may go for more details regarding your background, which can affect the calculations of the premium.
Life Insurance Premium
The life insurance premium is a one-time or recurring payment made by you towards your life insurance plan. A life insurance plan is valid only if you make payment of the premium on time and in accordance with the guidelines of the insurer. In general, you will have the option to select the frequency of payment of premiums such as single premium, yearly, half-yearly, quarterly, or monthly. A part of this premium is paid out as an assured sum when the policy’s benefits get triggered.
Any life insurance policy’s premiums vary depending on the plan that you choose along with the applicant’s credentials. Generally, a healthier, younger individual will possibly be quoted a lesser premium than an individual who has attained the age of 50. In the same way, a non-smoker will receive a preferential premium rate while a smoker is probably quoted a higher amount. There are several variables, which play an important part in ascertaining the premium amount that you have to pay and make all the calculations on your own with the help of the LIC calculator. This is where the LIC premium calculator comes to your rescue. Apart from providing estimated premium rates of the policy, the LIC calculator also saves time and helps to choose the best LIC policy as per one’s requirement and suitability.
Sample LIC Premium Calculation
LIC premium calculations are a bit complicated and cannot be done by potential customers on their own because of the numerous fundamental variables. A LIC calculator to calculate premium is the best tool for you in this scenario. Let us take an example of life Insurance premium calculations to illustrate the calculations of the premium.
The LIC maturity calculator has 4 to 5 fields depending upon the chosen plan. For this illustration, we have selected a New Endowment Plan, which has the maximum number of fields that include:
Type of the Plan
New Endowment Plan
Age of the Insured
Tenure/Term of the Plan
Sum Assured of the Plan
INR 10 Lakhs
*The Accident Benefit rider offers an additional cover for the accidental death on the top of the base life insurance plan, by adding up a little amount of insurance premium on the base premium. Other insurance companies may or may not offer the option of adding riders.
The inferences of this calculation are as under:
INR 4, 250/-
INR 12, 750/-
INR 25, 235/-
INR 49, 940/-
The premium figures are illustrated in four different types. Usually, yearly premiums are less costly in the long run as compared to monthly, quarterly, and half-yearly options.
LIC Premium Calculator – FAQs
What are the factors that determine the premium rate of a life insurance policy?
While purchasing the life insurance policy, the LIC calculator uses many factors to determine the premium rates of the policy. Based on the sum assured amount is chosen by the insurance buyer, tenure, and age the premium of a life insurance policy is calculated. However, apart from this, many other factors determine the premium rate of the policy. These are as follows:
- Weight and Height
- Medical History
- Marital Status
- International travel
- Smoking and alcohol consumption
- High-risk hobbies
How often do you pay an insurance premium?
There are many different modes through which the insured can pay the life insurance premium. There are generally two types of premium payment options offered by the policy i.e. single premium payment, where the insured can pay the entire premium of the policy at one go, and regular premium payment, where the insured can pay the premium yearly, half-yearly, quarterly and monthly installments. The LIC premium calculator helps you to determine the amount of premium you will need to pay towards the policy.
How to calculate life insurance premiums?
One can calculate the life insurance premium with the help of the LIC premium calculator. By entering the sum assured amount, age, and income in the LIC maturity calculator an individual can determine the premium amount of the policy.
What happens if you stop paying life insurance premiums?
It is very important to pay the premium of the policy regularly to avail of uninterrupted coverage of the policy. In case, the insured fails to pay the premium of the policy within the due date then a grace period of 30 days is offered by the insured during which the policyholder can clear all the due premiums.
In case, the policyholder stops to pay the life insurance premium then the coverage of the policy will cease and the policy will lapse.
Are insurance premiums paid monthly or annually?
The insurance premium can be paid annually as well as monthly.
What is the current rate of insurance premium tax?
The rate applicable to the current insurance premium of the policy has been increased from 6.5%-8.5%.
Can I lower my life insurance premium?
Generally, life insurance policies do not offer an option to reduce the premium of the policy. However, if the insured wants to change the premium amount of the policy then they can forward an application to the concerned branch office or customer service center and ask to lower the premium rate of the policy.
Can I cancel my life insurance policy at any time?
No, you cannot cancel the policy at any time. In case, you are not satisfied with the terms and conditions of the policy and want to cancel the policy then you can cancel the policy within the free-look period of 15 days offered by the insurance company from the date of inception.
How long do you have to pay life insurance premiums?
For a traditional life insurance policy, the premium payment duration is equal to the policy tenure. However, the premium payment tenure of a plan varies from policy to policy.
Is it worth it to buy life insurance?
Yes, buying a life insurance policy is the best way to secure the financial future of your loved one in case of the demise of the insured. You can make use of the LIC premium calculator to choose the best policy as per your requirement and suitability.
What is the paid-up value in Life insurance?
In case the policy premium is not paid on time and the policy lapses, then the policy acquires paid-up value and the policy is considered a paid-up policy. Under the paid-up policy the coverage of the policy stays intact till the policyholder demise.
How much tax do I pay on my life insurance premium?
It is a general concept that the premium paid towards a life insurance policy is entirely tax-free. It can be true in most circumstances but not for all types of life insurance premiums. Tax exemption on the premium amount is only applicable up to the maximum limit of Rs.1.5lakhs. Any amount above 1.5lkah will be taxable under the Income Tax Act of 1961.
How is the terminal bonus calculated?
Terminal bonus is also known as a loyalty bonus which is paid to the policyholder at the time of maturity of the policy along with the maturity benefit. The value of the terminal bonus is not guaranteed and is disclosed only during the time of policy maturity.
Can I claim tax exemption on the life insurance premium amount?
Yes, you can claim tax exemption up to the maximum limit of Rs1.5 lakh under section 80C of Income Tax Act 1961.
Do you have to pay taxes on life insurance policy payout?
No, the payout offered by the life insurance policy is tax exempted under section 10(10D) of the Income Tax Act
More Useful Resources
LIC Online Services
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- Aegon Life Traditional Plans
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- Bajaj Allianz Traditional Plans
- Bharti AXA Life Traditional Plans
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- Exide Life Traditional Plans
- Future Generali Traditional Plans
- HDFC Life Traditional Plans
- ICICI Prudential Traditional Plans
- IDBI Federal Traditional Plans
- IndiaFirst Traditional Plans
- Kotak Life Traditional Plans
- Max Life Traditional Plans
- PNB MetLife Traditional Plans
- Pramerica Life Traditional Plans
- Reliance Life Traditional Plans
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- SBI Life Traditional Plans
- Shriram Life Traditional Plans
- Star Union Traditional Plans
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