LIC 20 Lakh Calculator

Understanding the LIC 20 Lakh Calculator

The LIC 20 Lakh Calculator is an online tool provided by LIC to help individuals determine the premium amount required to obtain a life insurance coverage of 20 lakh rupees. This calculator takes into account various factors, including the individual's age, gender, premium payment mode, and the term of the policy. It then calculates the annual premium needed to secure a life cover of 20 lakhs.

Why is the LIC 20 Lakh Calculator Important?

• Customized Premium Calculation: The calculator provides a personalized premium amount based on individual parameters. This ensures that policyholders can choose a premium amount that suits their budget and financial goals.

• Financial Planning: Buying an LIC is an essential component of financial planning. With the LIC 20 Lakh Calculator, individuals can assess their insurance needs accurately. It helps them determine how much coverage is required to safeguard their family's financial future in case of an unfortunate event.

• Transparency: LIC's 20 Lakh Calculator promotes transparency by giving policyholders a clear understanding of the premium amount and coverage they will receive under their LIC 20 Lakh Policy. This enables informed decision-making and prevents any surprises down the line.

• Time-saving: Calculating insurance premiums manually can be time-consuming and prone to errors. The calculator simplifies the process and provides results instantly, saving valuable time for individuals.

What Factors Affect LIC Premium Calculation?

When calculating insurance premiums using the LIC premium and maturity calculator, several factors come into play. These factors influence the final premium amount an individual would need to pay. Here are the key factors that impact premium calculation:

• Age: Age is one of the most significant factors affecting insurance premiums. Generally, younger individuals pay lower premiums because they are considered at a lower risk of health-related issues. As one age, the risk of developing health problems increases, leading to higher premiums.

• Gender: Gender can also influence premiums. In some cases, women may pay lower premiums than men. This is because, statistically, women tend to have longer life expectancies and lower rates of certain health conditions.

• Health Condition & Family History: Your current health and medical history are critical in premium calculation. Individuals with pre-existing health conditions or unhealthy habits like smoking may have to pay higher premiums.

• Sum Assured (Coverage Amount): The higher the coverage amount (sum assured), the higher the premium will be. 

• Policy Term: The duration for which the policy is taken also affects the premium. Longer-term policies may have higher premiums because they provide coverage for a more extended period.

• Premium Payment Mode: The frequency of premium payments (monthly, quarterly, half-yearly, or annually) can impact the total premium amount. 

• Riders and Add-Ons: Adding riders or additional benefits to your policy, such as critical illness coverage or accidental death benefits, will increase the premium. These riders provide extra coverage but come at an added cost.

Wrapping It Up:

The LIC 20 Lakh Calculator is a valuable tool for individuals looking to secure their family's financial future through LIC. It simplifies the premium calculation process, promotes transparency, and aids in making informed decisions. By using this calculator, policyholders can customize their insurance coverage to meet their specific needs and budget constraints. Ultimately, the LIC 20 Lakh Calculator plays a crucial role in helping individuals make prudent financial decisions and ensure the well-being of their loved ones.

LIC Resources

FAQ's