LIC Premium Calculator: An Overview
Do you want to buy a LIC life insurance plan but not sure which one you should buy or which one suits your financial cost? The question is very general and has crossed the minds of all of us. Since life insurance plans offer protection against different life contingencies, choosing the right premium amount and sum assured becomes the first step to buying a life insurance plan from any of the life insurance companies in India.
LIC of India has eased the process of calculating LIC premiums and predicting how much premium you need to pay to get hefty protection when needed. LIC premium calculator is an online tool to calculate the premium amount before buying a LIC life insurance policy. Reading further, you will understand what the LIC premium calculator is, its benefits, the details required, and how you can use the LIC premium calculator in easy steps.
What is LIC Premium Calculator?
LIC premium calculator is a free tool available online that helps you estimate the amount you need to pay in premiums in definite intervals after purchasing a LIC life insurance policy. Regular LIC premium payment is important to keep the life insurance policy active and claim the benefits when the time comes. To calculate the LIC premium, you must provide relevant information, which takes less than a minute. The premium calculator LIC will show you a rough estimate of the premium. Well, keeping you one step ahead, the premium calculator tool helps you find other important technicalities of the life insurance policy, such as sum assured, LIC premium payment frequency, policy tenure, and so on.
Remember that the LIC premium calculator amount may vary from the premium cost decided by the life insurance company as they do a background check and can increase and lower the premium.
Need of LIC Premium Calculator
As the pioneer of insurance in India, LIC Corporation has taken major steps to simplify the insurance buying and claim process for customers. The idea behind the LIC premium calculator is to make the LIC policy buying journey easier and as transparent as possible. Besides allowing users to pick the best life insurance plan on their budget and insurance cover requirements, the following points highlight the need for an LIC premium calculator.
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Correct Estimation
Depending on the budget and desired financial coverage, the LIC policy calculator provides you with an accurate estimation of the desired coverage amount, policy term, policy paying term, and other benefits offered.
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Customizable
Depending upon the type of life insurance plan offered by LIC, including a LIC endowment plan, LIC term plan, LIC health plan, LIC pension plan, LIC ULIP plan, LIC micro insurance plan, or LIC whole life plan, you can decide between the coverage and affordability. You can increase or decrease the sum, add riders to extend benefits or make any other changes.
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Transparency
The premium LIC calculator gives you an estimate of the premium amount with applicable taxes and charges, which gives complete information about the total cost of the policy.
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Financial Planning
Once the customer is clear about the cost of the policy, they can choose the best life insurance plan for themselves. Customers can also look further to explore more ways to plan their finances carefully and develop investment opportunities.
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Easy Comparison and Buy
Using LIC premium calculator, the customers can compare and buy a suitable life plan from LIC after selecting the sum assured and premium that fits their budget and financial situation.
Factors Affecting the LIC Premium Calculation
The factors affecting the premium of the LIC policy calculator are mentioned below.
Age
Age is the prime factor that affects the LIC premium rates. Young individuals need to pay lower premiums than older ones. Hence, provide the right age to get the right LIC premium.
Gender
Since women have a higher life expectancy than men, they need to pay comparatively lower premiums. Hence, the LIC premium calculator may show different premium rates for men and women.
Health Conditions
People with pre-existing illnesses or medical conditions must pay higher premiums due to reduced life expectancy.
Sum Assured
The sum assured is the life cover amount that a life insurance company pays to the policyholder in case anything uncertain occurs. The higher the sum assured, the higher will be the premium amount.
Type of LIC Plan
The type of LIC life insurance plan and the coverage you have selected influence the LIC premium. If you choose LIC life insurance policy with higher coverage and bigger benefits, the premium amount will be costlier.
Policy Term
The policy term affects the cost of LIC premium. For longer tenure, the premium amount will be higher.
Additional Riders
To enhance the LIC policy coverage, the customer can opt for LIC riders as offered by the LIC plans. In such cases, the LIC premium cost will increase if you specify them while calculating the LIC premium.
Benefits of Using LIC Premium Calculator
Using the LIC plan calculator provides multiple benefits to the customers, as listed below
No Cost Calculation
The LIC plan calculator is available online and can be accessed by anyone looking for LIC premium calculation without paying a single cost. No need to wait for a quotation from a life insurance agent or branch, make your own decision per your financial suitability.
Hassle-free
By providing relevant information, the customers can compare different LIC life insurance plans in just a few clicks. Get the right premium amount information for the desired life cover.
Reduce Human Errors
Since the LIC premium calculator works in the automated mode by following the algorithm and pre-defined parameters, there is almost no chance of human errors. You get the estimated premium amount you must pay for the life insurance policy.
Convenient
Since the LIC premium calculator can be accessed online, hence you can use it without requiring a personal appointment. Hence it is more convenient to calculate the premium than ever before.
Tailor-made Policy
No one knows your needs better than you. Using the LIC premium calculator, you can buy a LIC policy specially crafted for your financial and insurance needs. You can increase or reduce the life cover, policy term and add any rider depending upon your preferences.
How to Use LIC Premium Calculator Online?
The purpose of using a LIC premium calculator is to assist you through the LIC policy purchase process and give you an idea of how much premium you need to pay. Here’s a quick guide to using LIC premium calculator.
- Visit the official website of LIC of India.
- Enhance the plan coverage with accidental benefit rider
- Click on the ‘Premium Calculator’ option available on the bottom right corner of the home page.
- On the next page, provide the required information like name, date of birth, gender, etc. and click on the ‘Next’ button.
- Select the ‘Quick Quote’ option to get a LIC life insurance plan quote.
- Select the type of life insurance plan available from the list provided. Click on the ‘Coverage’ button.
- Provide the preferred sum assured amount and policy term. Click on ‘Quote’.
- In the next screen, you will get the total premium details (yearly, half-yearly, quarterly and monthly) that you must pay to buy the LIC life insurance plan.
How Does LIC Premium Calculator Work?
Let us understand the workings of the LIC premium calculator with an example. Say, Aryan, working as an Area Manager, wants to buy an endowment plan. He chooses one of the LIC endowment plans for a sum assured of Rs. 20 lakhs and for a policy term of 15 years. He opts for the premium frequency for the quarter payment mode and doesn’t opt for any additional coverage. The LIC premium calculator estimates the premium amount in the following way.
| Premium Paying Mode | Total Premium Including Taxes | Basic Premium |
|---|---|---|
| Yearly | Rs. 1,40,381 | Rs. 1,34,336 |
| Half-yearly | Rs. 70,939 | Rs. 67,884 |
| Quarterly | Rs. 35,844 | Rs. 34,300 |
| Monthly | Rs. 11,948 | Rs. 11,433 |
Final Words
Anyone looking to buy a LIC policy can consider using the LIC premium calculator. They save time and energy, compare different LIC life insurance policies in minutes, provide true premium expectations, and make financial planning easy for an individual. The best part of using an LIC premium calculator is that you do not need to log in to the LIC customer portal. Once you purchase an LIC policy, you can check the LIC policy status, pay the LIC premium online, and track your LIC policy for any important updates.
To better understand the benefits of the LIC life insurance plan, you can connect with an LIC agent or life insurance agent nearby with the help of RenewBuy Advisor Connect. Get professional insurance advice and buy a suitable life insurance plan with the assistance of RenewBuy POSP Advisor.