9 Popular Life Insurance Premium Payment Options

When you buy a life insurance plan, choosing a premium payment option that fits your financial situation is important. Life insurance premium payment modes offer flexibility, ensuring your policy remains in force while aligning with your budget. With most insurers adopting online and automated platforms, policyholders have multiple ways to stay on top of their payments without hassle.

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Whether you prefer digital tools, automatic deductions, or traditional methods, here are the nine most widely used premium payment options in India.

Term Plans

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Life Cover

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₹75
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Life Cover

@ Starting from ₹ 12/day⁺

Different Ways to Pay Your Life Insurance Premium

Here are some of the most commonly used methods to pay your life insurance premiums conveniently and on time.

Online Premium Payment Options

Mobile Wallets
Mobile wallets are among the most convenient options, especially for young policyholders. Apps like Google Pay, Amazon Pay, Paytm, PhonePe, MobiKwik, and Airtel Money let you pay your life insurance premiums instantly. You can either maintain a wallet balance or link your bank account for smooth, one-tap payments.
Insurer’s Official Website
Almost every insurer provides an online payment option on its official website. You can make payments using credit/debit cards, net banking, or UPI. For example, LIC policyholders can log in to the LIC e-Services portal and pay premiums anytime, from anywhere.
Interactive Voice Response (IVR)
Check with your insurer if they have any provision for paying the premiums through IVR by keying in the credit/debit card details on a secured system. Do save your transaction identity code once the payment has been successfully executed. Further, make sure that your IVR premium payment processing system is PCI compliant to establish its reliability before divulging your credit or debit card details.
Auto-Debit (NACH/ECS/Standing Instruction)
Auto-debit is one of the easiest and most reliable ways to ensure your life insurance premiums are paid on time. Under this facility, the premium amount is automatically deducted from your bank account (via NACH/ECS) or credit card (through standing instruction) on the due date.
To activate it, fill out the mandate form provided by your insurer, attach a cancelled cheque or a self-attested copy of your credit card, and submit it for registration. Once set up, your payments are processed automatically each cycle, helping you avoid missed due dates, late fees, or policy lapses.
Electronic Clearing System (ECS)
The Electronic Clearing System (ECS) allows your insurer to directly debit the premium amount from your bank account on the due date. To set it up, submit an ECS mandate form along with a cancelled cheque at least a month before your next premium is due.
ECS is ideal for long-term policyholders since it ensures continuous coverage without worrying about missed payments. It also reduces paperwork and offers complete convenience once activated.

Offline Premium Payment Options

Insurer’s Branch Office
You can visit your nearest branch office to make premium payments via cash (generally up to a certain limit).
Post-Dated Cheques (PDC)
You can submit a set of post-dated cheques (minimum six) to your insurer. These will be deposited automatically on their respective due dates, ensuring timely payments without manual effort.
Collection Agents
Paying through a licensed insurance agent remains one of the traditional and trusted methods. You can pay your premium in cash or cheque to an authorised agent representing your insurer. The agent is responsible for submitting the amount to the company on your behalf. Ensure that you collect a signed and stamped receipt immediately after payment to confirm the transaction.
ATMs
Several insurers have partnered with banks to make premium payments more accessible. For instance, LIC allows customers to pay premiums through select partner banks such as Axis Bank, IDBI Bank, and City Union Bank. You can register your policy details with the bank to enable payments through their authorized channels. Once registered, you can conveniently pay your premium at the bank or use their official banking facilities.
Franchise
If you prefer paying in cash, you can visit authorized franchise outlets like Suvidhaa, APOnline, and MPOnline to make your premium payment. This is a good option for people who are not comfortable with digital modes or live in areas with limited internet connectivity. Always collect the official receipt issued by the franchisee, as it serves as proof of payment.

Note: Above options can be exercised only for policies that are in force. Know how to Revive A Lapsed Life Insurance Policy.

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Note: It is suggested to calculate the term plan premium on the term policy calculator online tool by Policybazaar before buying.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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FAQs

Q1. What is the easiest way to pay life insurance premiums?

Ans: The easiest way is through your insurer's official website or mobile app, where you can pay using UPI, net banking, debit/credit cards, or mobile wallets. It’s quick, secure, and provides instant confirmation and receipts.
Q2. Can I automate my life insurance premium payments?

Ans: Yes. You can set up auto-debit facilities such as NACH, ECS, or standing instructions on your bank account or credit card. This ensures your premiums are automatically deducted on the due date, preventing delays or policy lapses.
Q3. Is it safe to pay life insurance premiums online?

Ans: Yes, online premium payments made through your insurer's official portal or trusted payment gateways are encrypted and secure. Always verify that the website starts with “https://” and avoid using public Wi-Fi while making payments.
Q4. What are the payment methods for life insurance?

Ans: You can pay your life insurance premium through various methods such as online payment (net banking, credit/debit card, UPI), auto-debit (NACH/ECS), standing instruction on a credit card, cheque, demand draft, or at authorized branches and partner banks.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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