LIC Calculator

*Please note that the quotes shown will be from our partners

In a nutshell, life insurance policies cater to monetary benefits of the dependents of the policyholder in the case of his/her unforeseen death. This is, however, just a facade of life insurance plans, as these plans also doubleas pension funds, investment and saving tools, endowment funds etc. And, you will also receive tax benefits on the premiums paid towards a life insurance plan. Life insurance plans are designed to efficiently offer financial protection to the insured and for the future of his/her dependents.

Life Insurance Premiums:

Life insurance 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 assured sum when the policy’s benefitsgettriggered.

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 ratewhile 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. This is where the LIC Calculator comes to your rescue.

LIC Premium Calculator:

An LIC Calculator is a tool, which gives you an approximate amount of the premium in accordance with the policy chosen by you and its technicalities such as premium frequency, sum assured, age, tenure, etc. This life insurance premium calculator is made available by the official insurers for their complete product list. For example, the LIC of India has its own tool to calculate the premium for life insurance policies. Usually, LIC 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 is an approximation as the insurance company may go for more details regarding your background, which can have an effect on the calculations of the premium.

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 premium calculator 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 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:

38 years

Tenure/Term of the Plan:

20 years

Sum Assured of the Plan:

INR 10 Lakhs

Accident Benefit/Rider:

Yes/Selected*

*The Accident Benefit rider offers an additional cover for the accidental death on the top of base life insurance plan, by adding upa little amount of insurance premium on base premium. Other insurance companies may or may not offer the option of adding riders.

The inferencesof this calculation are as under:

Monthly Premium:

INR 4, 250/-

Quarterly Premium:

INR 12, 750/-

Half-yearly Premium:

INR 25, 235/-

Yearly Premium:

INR 49, 940/-

The premium figures are illustrated in four different types. Usually, yearly premiums are lesscostly in the long run as compared to monthly, quarterly and half-yearly options.