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LIC Premium Calculator

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LIC Premium Calculator Overview

A LIC premium Calculator or a term life insurance LIC premium Calculator is for the calculation of LIC premium online of an individual's monthly or annual payable premium for their life insurance policy. Thus, it helps an individual to evaluate the exact amount of premium that he or she is required to pay to receive the sum assured, which is desired.

The LIC Premium Calculator is a technology enable tool which is user friendly and saves a lot of time and effort. There is also a less chance of making mistakes which normally happen due to manual calculation of premium. The key highlight of the term life insurance LIC premium Calculator is the option of customisation for the users' convenience as well as comfort.

One of the major advantages of using a life insurance LIC premium Calculator is that it enables an individual a simultaneous comparison of the premiums of the different insurance companies. It is very tedious to go through the manual comparison process. Still, this online tool helps one to get a fair idea as well as an overview of several rates of premium which are offered by different insurance companies for a stipulated period and all this just in a glance.  

Life Insurance Premium

The life insurance premium is an amount that is paid to the insurance company in pre-decided instalments for a life insurance policy from LIC of India. The premiums are payable either on a monthly or annual basis. If the premium amount is not paid at the time of its payment, then the policy will stand lapsed.

Use LIC premium Calculators to Save Time and Efforts

LIC premium Calculators save a lot of time and effort to evaluate the amount of premium that one has to pay for insurance policies. This calculation of LIC premium online would help in comparing several policies offered by life insurance companies from LIC of India. It helps in narrowing down to the best Plan that is suitable for the policyholder's family's requirements and is within the budget.

Factors that decide Life Insurance Premium Rates

The amount that one pays to purchase life insurance is called the life insurance premium rate.

The key factors that determine the life insurance premium rates are as follows:

Rate of Mortality

This is an especially important factor for deciding the premium for insurance. The age of the policyholder helps in determining the mortality rate of that specific age group. The younger the policyholder, the more likely he or she will be offered a better rate of premium by the insurance company as there are fewer chances of a claim to be made in their case.  

Earnings from Investments

For an insurance company, the premiums which are being paid to them are an important source of income for the company as these premiums are used to pay towards the life insurance claims.

Health Records and Personal Habits

Life Insurance companies charge 30% to 70% of the higher premium to those individuals who have unhealthy lifestyle habits like smoking, having alcohol, etc. has against those individuals who lead a healthy lifestyle.

Sum Assured or Coverage

It is very simple to understand that the higher the amount which is to be insured, the higher will be the premium that an individual has to pay.

Benefits of LIC premium Calculator

Advantages of using a LIC premium Calculator are given below:

Ease of Calculation

A LIC premium Calculator permits an individual to calculate the premium amount that has to be payable without any hassles of using a manual Calculator.

Freedom from Errors

A LIC premium Calculator uses automation; therefore, it is less prone to making mistakes as against manual calculation.

Figuring the Exact Amount

LIC premium Calculator helps an individual to calculate the exact amount of insurance coverage that would be required for safe financial support and future the family of the buyer of the policy.

Comparing various Premiums

LIC premium Calculator helps its users to compare between varieties of amount of premiums offered by several insurance companies. This comparison will help in the determination of the most suitable plans for the buyer and his or her family by giving weightage to the premium amount and the duration of the policy for which the buyer will be required to hey pay the premiums.

With the use of a LIC premium Calculator, one can avoid over-insurance or under-insurance and find the best insurance policy with a sufficient insurance cover without being too expensive.

How to Use the LIC Premium Calculator?

Upon knowing the importance of a LIC premium Calculator and its benefits let us now see how one can use it for his or her advantage step by step:

Step 1: Firstly, the buyer of the policy must enter his or her details that are essentially required, such as birth date, age, gender, annual income, number of children, and marital status.  

Step 2: After personal details, the policyholder must enter details regarding the policy such as:

  • The desired sum insured
  • The desired tenure of the policy
  • The term or tenure for the payment of premium
  • Payment frequency - annually, semi-annually, quarterly, or monthly
  • Any additional riders to be included. One can select without worrying whether a payout would be as a monthly income or as a lump sum

Step 3: This is the final step which ends with the LIC premium Calculator display of the best amount of premium and insurance policies which are available in accordance with the individual's information. However, the plans suggested by the LIC premium Calculator needs a comparison by the buyer of the policy and thereby selecting the most beneficial Plan for his or her future.

Life Insurance Premium Payment Options

The frequency for the payment of premium can be selected as per the policyholder's convenience and preference. The policyholder can pay his or her premium, either monthly, quarterly, semi-annually, or annually.

Sharon's companies also offer where payment options help is their customers for payment of premium regularly. The following are the payment options by LIC of India:

  • Net banking or bill junction for online payment
  • Electronic clearing services
  • Bill desk payment
  • Bank has given standing instructions
  • Payment by cash or demand draft or check or credit card direct debit facility or an electronic clearing system at the insurance companies office
  • Visa bill pay
  • Wireless transfer for online payment
  • Payment wallet services for online payment
  • Payment through branch offices  

To calculate insurance premium is a highly arduous task for the customers. A LIC premium Calculator is the best solution for this.

Let's have a look at the sample calculation of the premium through LIC premium Calculator –

Plan Type Life Insurance from LIC of India
Age 31 years
Policy term 13 years
Payment of premium term 8 years
Sum Assured Rs. 10,00,000
Accident Benefit (Rider) Rs. 50,000
Payment of premium Yearly/ Quarterly/ Half-yearly
Results of the Premium calculation:Premium:
Yearly – Rs. 1,16,030 Half-yearly – Rs. 60,335 Quarterly – Rs. 30,747 Monthly – Rs. 10,442
Add Rider Premium:
Yearly – Rs.50 Half-yearly – Rs. 13 Quarterly – Rs. 26 Monthly – Rs. 4.50

When considering a long-term investment in insurance policies, it is observed that yearly premium less costly then quarterly half-yearly and monthly premium payments.

How to Calculate Premium via LIC Premium Calculator?

Life insurance premiums are either payable at the time of purchase of a policy or at regular time intervals depending upon the type of policy purchased from the LIC of India. To make any life insurance policy valid, the payment of premium has to be done on time as well as according to the rules of the life insurance policy from LIC of India. Customers have an option to choose their payment methods of payment of premium based on their personal preferences. The options which are offered by most of the policies are either monthly or quarterly or semi-annual or annual methods of payment.

The payment of premium is different for every policy depending upon the kind of policy an individual purchase. The testimonials of an individual are enough to determine the amount of payable premium. Usually, the younger, as well as healthier customers have an advantage of availing lower premiums as against the older in age customers.

To know the amount of premium that an individual has to pay towards a LIC policy one has to use the LIC premium Calculator for the calculation of LIC premium online.

LIC Premium Calculator

A tool that helps an individual to determine the approximate amount of money he or she has to pay as a premium is called the LIC premium Calculator. The tool considers the policy which one wishes to purchase as well as any other details associated with it like policy name, policyholder's age; the sum assured, the term of the policy, the frequency of paying premiums, and any add-ons or riders.

The whole form of the calculation of LIC premium online takes very little time to fill up, and once the required information has been registered, the LIC premium Calculator gives an approximate number for the premium which he or she is required to pay. However, one should take care that the number which is generated by the LIC premium Calculator is just an approximation. There are all the chances that the insurance company may go for doing background checks. It may have an impact on the number displayed by the LIC premium Calculator. The premium can either increase or decrease.

Let us have a look at an example of the LIC premium Calculator:

Type of Plan Endowment New Plan
Age of the Insured 42 years
Policy Term 15 years
The Sum Assured Rs.10 lakh
Add-ons/Riders Selected

The LIC Premium Calculator will generate information in the following manner:

Monthly Premium Rs.5,000
Quarterly Premium Rs.14,500
Half-Yearly Premium Rs.29,250
Yearly Premium Rs.58,500

Once an individual has an analysis of the approximation given by the LIC premium Calculator, he or she will then decide whether or not to move ahead in the direction of the purchase of the policy.

Term Insurance Premium Calculator

A premium is an integral part of a term life insurance policy from LIC of India. Often the term insurance providing companies are grilled with questions regarding the premium for a term insurance policy. The premium amount plays a vital role in the selection of a policy. Several companies now have the LIC premium Calculator tool for the calculation of LIC premium online on their websites. The policyholders can use the tool for the calculation of LIC premium online for any term insurance policy. The LIC premium Calculator facility is available to any individual who wishes to calculate an approximate number regarding the payable premium.

The LIC premium Calculator requires an individual to fill up the details regarding the gender, birth date and lifestyle habits like smoking or non-smoking. The insurance coverage amount depends on the information which is entered.

As soon as the information is entered, the premium figure payable will be displayed on the screen.  Again, the amount of premium will be calculated on the maximum term of the policy, which is as per the term life insurance policy offered by the insurance company.

If in case any additional benefits are selected to be a part of the policy, then they would be displayed under the payable premium amount. Some insurance companies give an estimate according to the term insurance plan selected and will offer the premium amount based on the kind of Plan and its coverage. The LIC Premium Calculator is thus an excellent tool for individuals to check their contribution towards the premium payment if they wish to buy a particular term life insurance policy from LIC of India.

Endowment Policy Premium Calculator

The endowment plan LIC premium Calculator one can come to know the details like the amount of premium, maturity value, value on surrender of the policy, value of the loan, and the policy returns. The endowment policy LIC premium Calculator will require information like the policyholder's age, the term of the policy, and the amount of the sum assured. From the information furnished the endowment policy, LIC premium Calculator will give the calculation of LIC premium online payable towards endowment policy

ULIP Premium Calculation

Charges considered in the calculation of LIC premium online for ULIP Policy:

When a customer avails a ULIP scheme from the LIC of India, the following charges are considered for the calculation of LIC premium online for ULIP policy:

Charges towards Fund Management

This charge is levied towards the management of the fund as a percentage of total asset value. The insurance companies charge this fee before they arrive at the net asset value.

Charges for Discontinuation

In case the customer decides to discontinue his or her ULIP scheme within the scheme's lock-in period, which is of 3 to 5 years, then a charge of discontinuation is levied upon the customer, which has to be borne by him.

Charges for Mortality

The mortality charge is usually a charge which is placed monthly for compensating the insurance company in case the policyholder is not able to live up to his assumed age. This charge is as per the lifestyle and the policyholder's age.

Charges for Surrender

Charge for surrender is imposed in case the person goes for premature withdrawal of units either in full or partially

Charges for Premium Allocation

This charge is imposed for the compensation towards expenses incurred for issuing a policy. The charge also involves the fees of the distributor as well as the cost towards underwriting of funds.

Charges for the Administration of the Policy

This charge aims at recovering the money that has been provided for the maintenance of ULIP policies involving the cost of paperwork, an intimation of premium, etc.

Charges for Switching of Funds

The ULIP policies provide a facility which is to choose the options of the funds as well as switching between them if one wants to. However, a fee for switching the funds is charged depending upon the type of fund being switched.

ULIP Premium Calculator

LIC Premium Calculator for ULIP policy or scheme calculates the policy returns which is to be received by the policyholder for a particular ULIP by furnishing the details of the specific policy as well as the tenure of the policy.

Some of the ULIP plan calculators now allow a comparison between different ULIP schemes based on the duration of the policy, enabling the policyholder to choose the best ULIP that suits his or her needs.

Money Back-Policy Calculator

Many insurance companies are providing LIC premium Calculator on their websites for enabling an individual for the calculation of LIC premium online. It provides an easy choice of the policy after the analysis of the approximate figure along with his or her needs.

A money-back policy LIC premium Calculator calculates the average of the premium payable based on the tenure of the policy, as well as the sum, assured. Additionally, details such as the policyholder's age are also considered towards the calculation of LIC premium online.

 On entering the necessary details, the money-back policy LIC premium Calculator computes the benefit payable on maturity at the time of the policy maturity as well as the payable premium.

LIC Premium Calculator - FAQs

  • Q1. Can one buy the policy from LIC Premium Calculator?

    Ans. No. The LIC premium Calculator tool only enables an individual to get a rough estimate of the potential premium amount that he or she might have to pay. If the individual finds the amount of premium and other policy details satisfactory, then he or she can proceed to buy the policy.   

  • Q2. Can one compare prices using LIC Premium Calculator?

    Ans. Yes. The LIC premium Calculator permits its users for comparing quotes from different plans and even from a single plan and decide on the policy. One can either use the sum assured or the amount of premium as the base of the calculation.

  • Q3. Are there any charges for using the LIC Premium Calculator?

    Ans. No. There are no charges payable for using the LIC premium Calculator.

  • Q4. Can LIC Premium Calculator value the policy's final price?

    Ans. No. A LIC Premium Calculator only gives an approximate figure of the amount of premium or the policy. If an individual wants to find out the exact values, then he or she has to contact the LIC after finalising the policy. A LIC Premium Calculator may not be updated about certain fees or taxes. Therefore, a potential buyer must be alert regarding the use of such tools that they are only meant to make the process easier. And it does not necessarily mean that these tools have the final say to the price of the policy through their estimation may be close to the actual.

Written By: Paisawiki - Updated: 17 March 2021