LIC Premium & Maturity Calculator

What is the LIC Premium Calculator?

The Life Insurance Corporation of India's LIC Premium & Maturity Calculator is a helpful tool for individuals planning to buy an LIC policy. This online calculator helps policyholders understand the impact of different parameters on premiums and payouts and allows them to choose the plan that best suits their needs.

The LIC premium calculator allows users to calculate the premiums against their chosen policy based on some related factors. The tool offers monthly, quarterly, half-yearly, and yearly estimates of the premium amount to make it easier for the user to choose.

Moreover, the GST charges are displayed separately. The idea behind the LIC premium & maturity calculator is to allow users to select the plan based on their budget and other insurance needs.

You can also check your term insurance plan's premiums using the term insurance calculator.

A Brief About LIC Premiums

The LIC premium is a one-time or recurring payment made by you towards your LIC plan. A life insurance plan remains active only if you pay premiums on time and according to the insurer's guidelines. Here are some other important pointers about life insurance premiums –

• Generally, you can select the frequency of premium payment, such as single premium, yearly, half-yearly, quarterly, or monthly.

• Premiums vary depending on your chosen plan and the applicant’s credentials.

• Generally, a healthier, younger individual will be quoted a lesser premium than someone who has attained the age of 50.

• In the same way, a non-smoker will receive a preferential premium rate while a smoker will be charged a higher amount.

The LIC premium and maturity calculator is handy as it lets you make all the calculations independently. Apart from providing estimated premium rates of the policy, the LIC calculator also saves time and helps you choose the LIC policy as per one’s requirements and suitability. Let us explore more about the LIC calculator and understand its benefits:

What are the Benefits of the LIC Return Calculator?

LIC Return Calculator offers several benefits such as:

• Saves Time:

  Calculating premiums or maturity amounts for your LIC Policy can be time-consuming, especially if you do it manually. Thus, using LIC maturity calculators can save time and give quick results in just a few clicks.

• Accurate Results:

  LIC Premium Calculators use complex algorithms to calculate premiums and maturity amounts based on age, policy term, sum assured, etc. As a result, you can be sure that the results you get are accurate.

• Easy Comparison:

  The LIC calculator allows you to compare several LIC policies easily. You can enter various policy parameters into the calculator and get instant results about premiums and maturity amounts for each policy. This helps you make an informed decision.

• Budget Planning:

  By calculating LIC premiums beforehand using the LIC calculator, individuals can better plan their budgets by knowing how much they need to set aside each month or year for their LIC policy.

• Transparency:

  Using the LIC Maturity and Premium Calculator also adds transparency to buying an LIC policy. It enables individuals to know exactly how much they will be paying as premiums and how much they can expect to receive upon maturity. This information ensures that there are no surprises later on and that individuals can make informed decisions about their financial investments.

Factors Considered by the LIC Premium Calculator

The LIC calculator includes the following fields that need to be filled by the user:

• Policy Information: You need to enter details about the type of LIC policy you are interested in, such as whether it's an endowment plan, term plan, money-back policy, or any other specific plan.

• Sum Assured: Provide the amount of coverage (sum assured) you want from the policy. It represents the guaranteed amount the insurance company will pay if the policyholder dies during the term.

• Policy Term: Enter the duration you intend to hold the policy (policy term). This is when you will pay premiums, and the policy remains active.

• Premium Payment Mode: Select the premium payment mode, such as monthly, quarterly, half-yearly, or annual.

• Age: Provide the policyholder's age, which can affect the premium amount.

• Additional Riders (if applicable): Some policies offer optional riders or add-ons for extra coverage. You can specify any riders in the calculator if you wish to include them.

Before using the LIC Calculator, you need to review the brochure of your chosen LIC Policy, as every LIC plan has certain eligibility conditions that must be met before purchasing a plan.

It takes less than a minute to fill the whole form. Once you have entered all the prerequisite information and preferences, the tool will display a relevant premium figure.

The result displayed by the LIC calculator is an approximation as the insurance company may ask for more details regarding your background, which can affect the calculation of the premium.

What are the Benefits of the LIC Return Calculator?

LIC Return Calculator offers several benefits such as:

• Saves Time: One of the most significant benefits of using lic maturity and premium calculators is that they save time. Typically, calculating premiums or maturity amounts for life insurance policies can be time-consuming, especially if you have to do it manually. However, with a LIC calculator, you can get quick results in just a few clicks.

• Accurate Results: These calculators use complex algorithms to calculate premiums and maturity amounts based on age, policy term, sum assured, etc. As a result, you can be sure that the results you get are accurate. 

• Easy Comparison: The LIC calculator allows you to compare several LIC policies easily. You can enter various policy parameters into the calculator and get instant results about premiums and maturity amounts for each policy. This helps you make an informed decision.

• Budget Planning: A significant benefit of using LIC Maturity and Premium Calculator is that they help with budget planning. By calculating premiums beforehand using the LIC calculator, individuals can plan their budgets better by knowing how much they need to set aside each month or year towards their life insurance policy.

• Transparency: Using LIC Maturity and Premium Calculator also adds transparency to buying an LIC policy. It enables individuals to know exactly how much they will be paying as premiums and how much they can expect to receive upon maturity. This information ensures that there are no surprises later on and that individuals can make informed decisions about their financial investments.

How Does the LIC Calculator Work?

The LIC premium calculator is valuable for gaining insights into various LIC insurance policies and their coverage terms. It is crucial in helping people make informed decisions when choosing the most suitable policy.

Furthermore, the LIC return calculator provides essential information regarding taxes, total premium payments, coverage for accidental events, and potential medical risks that might be linked to the chosen policy. It also estimates the total bonus amount and the lump sum payout that policyholders can expect upon maturity.

The LIC premium calculator offers effortless comparisons between policies and enables individuals to make well-informed decisions.

Sample LIC Premium Calculation using LIC Premium Calculator

Several variables play an important part in calculating the premium amount that you have to pay. Therefore, a LIC calculator to calculate premiums is considered the tool in this scenario. Here is an example of a life insurance premium calculation using the LIC premium and maturity calculator.

For this illustration, we have selected LIC’s Jeevan Umang.

*The Accident Benefit rider offers an additional cover in case of accidental deaths on the top of the base life insurance plan. The insurer charges an extra premium amount for such riders. The LIC premium calculator also offers visibility on the extra premium charged for riders.

The premium payable under the plan is:

5 Tips to Reduce LIC Premiums

• Start Early:
  Buying an LIC policy at a younger age is a proactive strategy to reduce premiums. Younger individuals are generally considered lower risk, leading to more affordable premium rates. By initiating coverage early in life, policyholders can lock in lower rates, providing long-term financial protection at a cost-effective price.

• Choosing the Right Sum Assured:
  Careful consideration of the sum assured is crucial in optimizing LIC premiums. Assess your coverage needs realistically and avoid overpaying for excessive coverage. You can ensure adequate protection without unnecessary premium expenses by choosing a sum that aligns with your financial obligations and goals.

• Prioritize a Healthy Lifestyle:
  Maintaining a healthy lifestyle can have a positive impact on LIC premiums. Regular exercise, a balanced diet, and well-being contribute to lower risk factors. By prioritizing health, individuals enhance their quality of life and potentially enjoy lower insurance costs.

• Quit Smoking:
  Quitting smoking is beneficial for overall health and can lead to significant reductions in insurance premiums. Insurance companies consider smokers to be higher-risk individuals, and as such, they typically face higher premium costs. Policyholders can enjoy lower premiums by quitting smoking, reflecting the positive impact on their health and reduced risk profile.

• Selecting an Appropriate Policy Term:
  The policy term plays a vital role in determining premiums. Choose a policy term that aligns with your financial goals and objectives. Avoid unnecessarily extending the policy term, as longer terms may lead to higher premiums. By selecting an appropriate term, you strike a balance between coverage duration and premium affordability.

Summing It Up

LIC Return Calculators are a valuable resource for purchasing a LIC policy. These calculators are user-friendly, save time, produce reliable results, simplify comparing policies, support budget planning, provide customization possibilities, increase process transparency, and simultaneously calculate premiums for multiple policies. Therefore, its recommended that you use these calculators to make financial decisions about your future investments if you have life insurance or are considering purchasing one.

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