LIC Late Fee Calculator

LIC late fee charges at a glance

Missing a due date can be stressful, because you may not know how much extra you will pay to keep the policy active. The exact LIC late payment charges depend on your premium, how long you delay and your policy terms.

Understanding LIC Premium Payment Late Fee Charges

Missing an LIC premium due date can be stressful especially when you’re unsure how much extra you’ll have to pay to keep your life insurance policy active. If the premium remains unpaid beyond the grace period, the policy lapses and reviving it means paying the overdue premiums along with a late fee.

The exact LIC late payment charges depend on your premium, the length of the delay and your policy terms. LIC currently charges 9.5% interest rate for late fee payment plus a GST of 18%. An LIC premium payment late fee calculator shall help you estimate the exact amount of late fee you may have to pay. The calculator quickly illustrates results for you in seconds. You just need to enter the right policy details.

The table shows the LIC late fee charges as a share of the overdue premium for the first three months of delay.

For example, at 9.5% a premium that is one month late carries a fee of 0.792% of the overdue premium, before GST.

What Is the Grace Period for LIC Policies?

From the first unpaid premium, LIC of India offers 30 days during which you can pay off the delayed amount. This is the grace period. For monthly premium payments, the grace period is limited to 15 days only. If you make the delayed premium payment during this period, you won’t be charged an extra fee. If, however, you cannot pay off the amount within this period, LIC will charge a late fee to revive the lapsed policy.

How to Calculate LIC Premium Late Fee Charges?

The LIC Premium Payment Late Fee Calculator considers the following factors to give you an estimate of the total late fee charged -

• Date of 1st unpaid premium

• Date of revival

• Premium amount

• Mode of premium payment

• Total premium due

• Current interest rate

The interest rate for LIC late fee charges is generally 9.5% of it may be between 6% to 9.5%, as mentioned in your specific policy documents. To calculate the LIC premium late fee, use the interest rate for your particular policy and then use the following formula.

Interest Overdue=Premium Amount9.5Rounded Months12100

Total LIC Late Fee Charges =Interest Overdue +18% of interest overdue (GST)

The above formula uses 9.5% as an example, therefore, you need to write your late fee interest rate and then make the calculation.

LIC Revival Period Considered by The LIC Premium Payment Late Fee Calculator

The LIC late fee calculator calculates the late fee based on when the policy is being revived.

• If a policy is revived after 30 days to 1 month 14 days, the calculator considers this a delay of 1 month.

• If a policy is revived after 1 month 15 days to 2 months 14 days, the calculator considers this a delay of 2 months.

• If a policy is revived after 2 months 15 days to 3 months 14 days, the calculator considers this a delay of 3 months.

• If a policy is revived after 3 months 15 days to 4 months 14 days, the calculator considers this a delay of 4 months, and so on.

As of now, the late payment charge for LIC premiums is 9.5%.

Sample Late Fee Calculation Using the LIC Premium Payment Late Fee Calculator

Say that you stopped paying premiums for your LIC policy on 5th July 2026 and want to revive it on 10th August 2026. Take the following example -

• Premium payment mode - Monthly

• Monthly premium - Rs.10,000

• Lapse period - 1 to 45 days (1 month)

• Interest rate - 9.5%

Therefore,

Interest Overdue=10,0009.5112100=₹79.17

GST=18% of 79.17=₹14.25

Total LIC Premium Late Fee Charges = ₹93.42

Here is another example

If your premium is ₹5,000, your interest rate is 9.5%, and you are 50 days late (which falls into the 2-month bracket),

• Calculate Base Interest
  Interest Overdue=5,0009.5212100=₹79.17

• Calculate 18% GST
  GST=18% of 79.17=₹14.25

• Total Due
  Total LIC Premium Late Fee Charges = ₹93.42

The LIC policy revival scheme should be studied in detail so your revival is smooth. Further, it is advisable to revive a policy as getting a new one will charge you higher premiums based on your age and health conditions.

LIC penalty after the due date: what happens if you pay late?

There is no LIC penalty after the due date if you pay within the grace period. After that, the policy lapses and the LIC fine for late payment applies.

• The policy lapses. You lose its cover and benefits until you revive it.

• You pay the overdue premiums with the late fine. The LIC late fine is interest on each overdue premium, at the rate in your policy, usually 9.5%.

• You revive within 5 years. LIC policies can be revived within 5 years of the first unpaid premium. After that you may not be able to revive them.

To avoid the LIC late fee, pay on or before the due date, or at least before the grace period ends.

Reviving after the first six months may need more than the fee. LIC can ask for a Declaration of Good Health and sometimes a medical check, so confirm the requirements for your policy before you pay.

From time to time LIC runs revival campaigns that cut the late fee. In its drive between August and October 2025, eligible non-linked plans got up to 30% off the late fee, capped at ₹5,000, and micro-insurance plans got a full waiver.

What are the Benefits of LIC Premium Late Fee Calculator?

The calculator saves time and shows you the real cost of delay.

• See how the fee grows. Test different payment dates to see how the late fee rises with each month.

• Compare your options. Weigh the total revival cost against alternatives such as a paid-up policy.

• Cross-check quotes. Check the amount quoted by a branch or an agent against your own estimate.

• Handle several policies. If premiums are overdue on more than one policy, each instalment has its own delay, and the calculator saves you the manual work.

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