LIC Premium Without Tax Calculator

What is the LIC Premium Without Tax Calculator?

The LIC premium without tax calculator is a feature in the LIC’s Premium Calculator tool that calculates premiums and the taxes separately. This information before purchasing a plan helps you to correctly assume the actual cost of an insurance policy. 

Key Features of the LIC Premium Without Tax Calculator

• The calculator displays three components - the basic premium amount, the tax amount, and the combined total premium amount. 

• If you choose a rider along with the plan, the calculator will reflect the additional premium along with the tax component.

• A key feature is that it shows premiums payable on a yearly, half-yearly quarterly, and monthly basis. 

• There is no limit to the number of times the calculator can be used. 

• The calculator requires you to input your age, gender, desired sum assured amount, coverage period, to arrive at an accurate estimate. 

Why should you use the LIC Premium Without Tax Calculator?

• Based on the quotes generated, you can decide if the total amount including taxes fits your budget or not. 

• You can change the needs and requirements out of the plan such as the sum assured, policy term, premium paying term, etc to arrive at a premium that suits you.

• Online availability ensures that one can use the tool from the comfort of their homes. 

• Offline agents may not be able to communicate the exact tax that is levied on insurance policies. Using this tool eliminates third-party agents, thereby reducing the chances of misselling.

• The LIC premium & maturity calculator is completely free of cost and offers results in an instant. 

• It offers customized results based on the inputs of each user.

Tax On LIC’s Life Insurance Premium

The premium that you pay towards an LIC policy does not entirely go towards the life cover. A percentage of it is actually taxes that any insurance buyer has to pay to the Government of India. This comes under the Goods and Service Tax introduced in 2017 by the Government to do away with complex indirect taxes in the country. 

Knowing how to calculate LIC premium without tax is important to make informed decisions. Here is a brief breakdown of the GST amount applicable under different types if insurance policies sold by LIC. 

• For LIC term insurance plans where the entire premium is for the life cover, a GST of 18% will be charged on the total premium. 

• In case of LIC’s single premium annuity plans, GST of 18% will be charged only on 10% of the premiums, and not the whole amount.

• For LIC’s traditional endowment plans, GST is charged on 25% of the premium in the 1st year and on 12.5% of the premium payable in subsequent years. 

To Sum Up!

The LIC premium without tax calculator lets you accurately calculate the basic premium amount. The additional tax is displayed separately so that users know how their money is being spent. It available in the official channels of LIC and can be accessed at any time and by anyone.