LIC Premium & Maturity Calculator

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:

  • Gender
  • Weight and Height
  • Dependents
  • Medical History
  • Marital Status
  • Income
  • Occupation
  • International travel
  • Debt
  • 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	LIC Plans
  Check LIC Policy Details	LIC Investment Plans
  LIC Online Premium Payment	LIC Retirement Plans
  LIC e-Services	LIC Child Education Plans
  LIC Online Login Process	LIC Term Insurance Plans