How to Calculate LIC Premium without Tax in 2021?

LIC is India’s largest insurance company, which deals with various kinds of insurance plans, which are sold to the customers, based on their policy terms by maintaining the interest of the insurance holders. The customer who buys the insurance plan needs to pay regular periodical premiums at an agreed sum assurance and policy tenure.

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Before we deal with the LIC Premium Calculator, we need to know what exactly the word premium is. Premium means the amount paid by the insurance holder to the insurance company in periodical installments, in exchange the insurance holder will get policy coverage (maturity benefit). LIC Premium calculator will calculate the premium that the insurance holder pays to the company. 

LIC of India

Life Insurance Corporation (LIC) of India is the only public sector largest life insurance company in India. It provides a broader spectrum of insurance schemes like life insurance plans, investment plans, health insurance plans, motor insurance plans and various other insurance plans, etc., to its customers and grows the savings of the insurance holders. From the collected resources from the insurance holders, the company makes economic use of those collected resources by investing them in various economic sectors. It acts as a trustee to the insured person (i.e., insurance holder) in their individual and collective competencies. 

As mentioned above LICofIndia offers various insurance policies for customers, each policy differs from the other in various aspects. These policies also differ from person to person based on considering some criteria like age, policy term, sum assured, smoker/ non-smoker, etc., the premium value increases with the age of the person. 

How Do LIC Insurance Schemes Work?

Among the various insurance options provided by the insurer, the insured can buy any suitable plan. As mentioned above these plans are different from person to person, the premium installments and policy coverage will be different. Once the insured buys the policy based on the policy terms, at the end of the policy tenure he will receive the policy coverage or the maturity benefit (basic sum assured + accumulated simple bonus during policy tenure + final additional bonus). The insurance company will pay the lump sum amount of money as a maturity benefit to the insured on the endurance of the opted policy. 

LIC Maturity Calculator

Insured can calculate his/her maturity amount through the LIC Maturity Calculator based on the policy terms. Insured need to mention his details like age, term, year of purchase, and basic sum assured. After entering the above details, another window opens where he needs to enter his name, mobile number, and email id. Then the maturity benefit details will be displayed with sum assured, bonus, Final Additional Bonus (FAB), and total sum. This is how the insured can calculate his/her maturity benefit through the maturity calculator. Once the policy tenure ends, premium payments stop after the insured receives the maturity amount. 

LIC Premium Calculator

LIC Premium Calculator is an online tool that is made available to customers by the LIC e-services. This calculator helps to calculate the premium for the plans provided by the company. Before opting for any LIC insurance schemes, he can check the description of any plan and how much premium he needs to pay for such a particular plan through the premium calculator. It will help the customers to opt for the preferable LIC insurance plans by checking the premiums through the calculator. 

How to Use the LIC Premium Calculator?

LIC Premium Calculator is available on LIC's official website where you can calculate the premium. The following steps are to be followed to calculate. They are:

Step 1: Visit the LIC’s official web portal i.e., www.licindia.in

Step 2: Find the ‘premium calculator’ tab

Step 3: Click on the premium calculator tab

Step 4: Enter the asked basic details i.e., first name, last name, middle name, date of birth, age, select the gender, country code, mobile number, and email id. 

Step 5: Then click on the Next button

Step 6: Then a popup with ‘quick quote’ (get your life insurance plan quote calculated), ‘compare quotes’ (get your life insurance plan quote compared) and a cancel button appears on the screen.

Step 7: Click on the ‘quick quote’ button

Step 8: Then a new window opens with various LIC plans with categories like endowment, health, micro, money back, term, unit-linked, and whole life.

Step 9: Choose any preferable plan 

Step 10: Then click on the coverage button, which is available at the bottom of the window.

Step 11: The Coverage window will open.

Step 12: Enter the coverage details i.e., base coverage option, coverage info, number of lives, policy term, sum assured, premium paying term, additional coverage, etc., these coverage details change according to the opted insurance plan.

Step 13: Then click on a quote button

Step 14: The calculated premium will be displayed on the screen

Step 15: The Calculator shows the total premium including tax and it also shows tax and basic premium separately.

Through the LIC Premium Calculator, the customer can calculate the total premium including the tax on any chosen plan, and it shows the basic premium and tax levied separately. So that it is, way easier for the customer to check how much is the tax levied on any particular insurance plan that he opts for.

The below-labelled example (choose any LIC policy) will show how exactly the LIC Premium calculator works:

For example, if a customer opted LIC Endowment Policy

Policy: New Jeevan Anand (plan-915) policy,

Age: 21 years

S.No.

Sum assured 

Policy term 

Accident benefit  

Total premium including tax (yearly)

Basic premium (premium without tax) (yearly)

Tax levied (yearly) 

30 Lakh 

20

No

Rs. 1,67,099

Rs. 1,59,903

Rs. 7,196

30 Lakh

20

Yes (1,500)

Rs.1,68,666

Rs.1,59,903

Rs.7,263

50 Lakh

30 

Yes (Rs. 2,500)

Rs. 1,71,276

Rs. 1,61,400

Rs. 7,376

50 Lakh

30

No

Rs. 1,68,663

Rs. 1,61,400

Rs. 7,263

The values remain constant for men and women.

Policy: New Jeevan Anand (plan-915) Endowment policy,

Age: 50 years

S.No.

Sum assured 

Policy term 

Accident benefit  

Total premium including tax (yearly)

Basic premium (premium without tax) (yearly)

Tax levied (yearly) 

30 Lakh 

20

No

Rs. 2,16,255

Rs. 2,06,943

Rs. 9,312

30 Lakh

20

Yes (1,500)

Rs.2,17,83

Rs.2,06,943

Rs.9,380

50 Lakh

20 

Yes (Rs. 2,500)

Rs. 3,63,038

Rs. 3,44,905

Rs. 15,633

50 Lakh

20

No

Rs. 3,60,426

Rs. 3,44,905

Rs.15,521

The values remain constant for men and women.

How to Calculate LIC Premium without Tax?

Before calculating the LIC premium without tax, the customer first needs to know how to calculate the LIC premium with the LIC premium calculator that I have discussed above. Before calculating the premium, we need to keep in mind that, every LIC insurance scheme will be levied with the tax. As the customer calculates the premium of any insurance plan through the LIC Premium calculator, the calculator will display the tab mentioning the total premium, which includes tax and basic premium separately, and the tax levied separately. Based on this calculator customers can calculate the premium which excludes the tax i.e., basic premium. The basic premium that is displayed on calculating the whole premium is the premium, which does not include the tax. We consider the basic premium as the LIC premium without tax levied.   

How to Check the LIC Premium without the Tax?

A customer can check his /her LIC premium without tax in some ways. They are:

  • Premium Payment Receipt: Customers can check the LIC premium amount without tax through premium payment receipt. In the premium payment receipt, the basic premium without tax and the tax amount both are mentioned separately. Premium paid certificates are also available at the company’s web portal from which the premium amount without tax is mentioned. 
  • Status Report: On the status report of the insurance plan, the premium amount excluding the tax is mentioned. Customers can get the status report of the scheme through the policy number.
  • Policy Bond: The policy bond is provided to the customer by the company when he buys the insurance scheme. In the policy bond, the premium amount and the tax amount are mentioned separately where the customer can check the LIC premium amount without the tax.
  • Through the LIC premium calculator.

Advantages of LIC Premium Calculator

The main advantages of using the online LIC Premium calculator are:

  • The online LIC premium calculator is much easier to use rather than visiting LIC offices manually and it is cost-free. 
  •  It is available for customers with flexible timings.
  • Time-saving: calculating the premiums to buy the policy online is a time-saving process rather than enquiring about every policy manually.
  • There is no chance for human errors.
  • Helps to buy insurance policies.
  • Customers can compare every insurance policy under the LIC of India and make a decision to opt for a preferable LIC policy.

The Bottom Line

LIC premium can be calculated with the LIC premium calculator by the insured holder at his/her fingertips. The calculator will show the basic premium excluding the tax that needs to be paid by the insurance holder. Customers can calculate the premiums for different plans through the premium calculator, which helps them to choose the suitable insurance to buy.

Written By: PolicyBazaar - Updated: 27 August 2021
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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