If you are also the one who has missed the payment of LIC premium within the date due, then do not worry. This is because LIC provides a grace period for LIC premium payment during which you can pay the premium of your LIC policy without paying interest on it.Read more
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Let us understand the grace period in detail:
Basically, the products of Life Insurance are for the long term and the LIC of India provides two ways of premium payment for them. One is – upfront payment, which is called a single premium payment. Another is – annual payment, which is called a regular premium payment. As mentioned earlier, these policies are long-term in nature; hence most of you purchase a regular premium payment plan. However, the regular premium payment policy as well comes in the variant of limited payment.
According to the limited premium payment version, you do not have to pay the premium throughout the policy term. In place of that, you do the payment of the premiums only for a limited number of years of the entire policy term.
As per the regular premium payment policy, (other than the annual premium payment), the insurance provider can allow the shorter installments of half-yearly, quarterly, or even monthly payments.
For annual premium payment, you have to pay the premiums on the date of renewal of the policy. The renewal date of a policy is exactly one year after the previous year’s premium payment date. However, in order to make the premium payments easier, an insurance company like LIC allows a grace period of 30 days for paying the renewal premium. But, if you have selected the mode of premium payment every month, then the grace period for LIC premium payment is 15 days. To understand this clearly, we are providing a detailed description in the following points:
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
Some of the facts related to the grace period of a LIC policy that you must know are:
The grace period for LIC premium payment is a limited time and you must make the premium payment during this time as if the grace period passes, your policy lapses. To revive a lapsed policy, you not only have to pay some extra fees as a penalty but also have to go through the entire process of policy renewal. So, it is better to pay the premiums of your LIC policy on time and at least within the grace period. Generally, the insurance providers give information about the premium payment date and grace period as well.
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