The LIC Calculator is an online tool specifically designed to help policyholders calculate their LIC policy premiums and maturity amounts. This LIC calculator helps them better understand the costs and payouts, allowing them to plan their policies according to their financial needs.
The LIC Premium and Maturity Calculator is a free online tool from the LIC of India. It helps policyholders estimate their premiums and maturity payouts.
With this LIC calculator, policyholders can check the premiums for their LIC policy and customize the plan to fit their needs and budget. It estimates monthly, quarterly, half-yearly, and yearly premiums, making it easy to choose the best option.
You can also check your term insurance plan's premiums using the term insurance calculator. And if you're planning for long-term wealth creation, choosing an SIP calculator can help you estimate potential returns on your investments through systematic investment plans (SIPs).
What are the Benefits of the LIC Return Calculator?
Using the LIC Return Calculator not only helps in estimating premiums and maturity benefits but also offers several benefits, such as:
Time-Saving:
Calculating LIC premiums or maturity amounts manually can be time-consuming. However, calculating using the LIC maturity calculators can save time and give quick results in just a few clicks.
100% Accuracy and Transparency:
LIC Calculators give accurate results for premiums and maturity amounts based on age, policy term, sum assured, etc. Using the LIC Calculator also adds transparency. It lets individuals know exactly how much they will pay in premiums and how much they can expect to receive upon maturity.
Easy Comparison:
Using the LIC Premium and Maturity Calculator, you can compare several LIC policies easily and choose the right LIC policy for you as per your needs and requirements
Budget Planning:
With LIC Policy Maturity Calculator, you can calculate the premiums beforehand and better plan your budgets by knowing how much you need to set aside each month or year for your LIC policy.
How Does the LIC Calculator Work?
The LIC Calculator is a useful online tool that helps individuals estimate their insurance premiums, maturity benefits, and bonuses before purchasing an LIC policy. It ensures that the selected plan aligns with the policyholder's financial needs and budget.
Let's understand how the LIC calculator works with an example:
Amit, a 30-year-old professional earning ₹12 lakhs per annum, wants to secure his family's future by investing in an LIC policy. However, he is unsure about the premium he will have to pay for his desired coverage.
To get an estimate, Amit visits the LIC Calculator and follows these steps:
Step 1: Enter Policy Information: He selects the type of LIC policy he wants, such as an endowment plan or a money-back policy.
Step 2: Choose the Sum Assured: Amit enters the amount he wants as a guaranteed payout, ensuring financial security for his loved ones.
Step 3: Select the Policy Term: He decides how many years he wants to keep his LIC policy active.
Step 4: Choose Premium Payment Mode: Amit selects his preferred payment frequency—monthly, quarterly, half-yearly, or annually.
Step 5: Provide Age Details: Since age is crucial in determining premium rates, he inputs his current age.
Step 6: Add Riders (if applicable): Amit explores add-ons like an accidental death benefit or critical illness rider to enhance his policy benefits.
**Within seconds, the LIC Calculator provides an estimated premium amount based on Amit's inputs, helping him make an informed financial decision.
**Note: The estimate provided by the LIC Calculator is for reference only. The final premium amount may vary based on medical history, eligibility criteria, and LIC's underwriting assessment.
Sample LIC Premium Calculation using LIC Premium Calculator
Here is an example of a life insurance premium calculation using the LIC premium and maturity calculator.
*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:
Monthly Premium
INR 2,639/-
Quarterly Premium
INR 7,916/-
Half-yearly Premium
INR 15,665/-
Yearly Premium
INR 30,994/-
How to Use LIC Premium Calculator?
Before calculating any premium, always make sure you have your age, policy term, and the sum assured you want to opt for. With these details, you will be able to check your premium through LIC calculator:
Step-by-Step Guide to Using the LIC Premium Calculator
The LIC Premium Calculator is a simple process that helps you estimate your life insurance premium quickly. This tool is perfect for anyone looking to understand their life insurance costs before deciding. Here are the steps to use it easily:
Step 1: Open the LIC Calculator- Go to the LIC Premium Calculator website to start.
Step 2: Enter Your Details- Fill in your personal information like age, gender, smoking habits, and medical history.
Step 3: Choose Your Policy and Coverage- Select the type of life insurance policy you want and enter the coverage amount (sum assured).
Step 4: Select Payment Frequency—Choose how often you want to pay the premium, whether annually, semi-annually, quarterly, or monthly.
Step 5: Get Your Premium Estimate- Click the "calculate" button to see an estimate of your premium based on the information you entered.
Other LIC Plan Calculators
Policyholders can explore various other LIC plan calculators tailored to specific policies. Here is a list of available LIC Policy calculators:
Sometimes, you will find an LIC insurance calculator named as per their features. Some of them are LIC 15 years plan calculator, LIC 1 lakh policy 15 years maturity calculator, LIC 10 year plan calculator, and LIC 10 lakh policy premium calculator online. In such cases, you should ensure you use the right calculator as per your official plan name. Using the right LIC scheme calculator, you can estimate premiums, maturity benefits, and other essential details for the respective plans. Always review the policy brochure before making decisions.
5 Tips to Reduce LIC Premiums
Although premiums depend on several factors, policyholders can use the following specific strategies to help lower their LIC premiums:
Start Early: Buying a Life Insurance Policy at a younger age is a cost-effective move. Younger individuals are usually considered lower risk, leading to more affordable premium rates. By buying an LIC policy early, individuals can lock in lower rates and ensure long-term financial protection.
Choose the Right Sum Assured: Before finalizing an LIC policy, assess your coverage needs carefully. You can ensure adequate protection without unnecessary premium expenses by choosing a sum that aligns with your financial obligations and goals.
Maintain a Healthy and a Safe Lifestyle: Maintaining a healthy lifestyle can positively reduce 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.
Avoid Smoking: Quitting smoking is beneficial for overall health and can affect premium costs. Insurance companies consider smokers to be higher-risk individuals, and hence, they have to face higher premiums. Policyholders can enjoy lower premiums by quitting smoking, reflecting the positive impact on their health and reduced risk profile.
Select an Appropriate Policy Term: The policy term plays a vital role in determining premiums. Choose a term that aligns with your financial goals and objectives. You can balance coverage duration and premium affordability by selecting an appropriate term.
Summing It Up
An LIC Return Calculator is a valuable tool for deciding an ideal LIC policy. These user-friendly LIC calculators 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, it is recommended that you use LIC term plan calculators to make financial decisions about your future investments if you have life insurance or are considering purchasing one.
Q: What factors determine the premium rate of a life insurance policy?
Ans: When purchasing a life insurance policy, the LIC calculator considers various factors to determine the premium rates, such as the chosen sum assured amount, tenure, and age. Other factors include:
Gender
Weight and Height
Dependents
Medical History
Marital Status
Income
Occupation
International travel
Debt
Smoking and alcohol consumption
High-risk hobbies
Q: How often do you pay an insurance premium?
Ans: There are various modes through which the insured can pay the life insurance premium. There are generally two types of premium payment options offered by the policy:
Single premium payment, where the insured can pay the entire premium of the policy in one go, and
Regular premium payment, where the insured can pay the premium yearly, half-yearly, quarterly, and monthly installments.
The LIC calculator provides results based on your chosen premium payment mode so you can make the best decision for yourself.
Q: How to calculate LIC insurance premiums?
Ans: The LIC premium calculator can help calculate life insurance premiums. By entering the sum assured amount, age, income, and premium-paying frequency, an individual can determine the premium amount of the policy.
Q: What happens if you stop paying life insurance premiums?
Ans: Paying the policy premium regularly is crucial to avail uninterrupted coverage. In case the insured fails to pay the premium within the due date, the insurer offers a grace period of 30 days during which the policyholder can clear all due premiums. If the policyholder stops paying the life insurance premium, then the policy coverage will cease, and the policy will lapse.
Q: Are insurance premiums paid monthly or annually?
Ans: Insurance premiums can be paid annually as well as monthly.
Q: How long do you have to pay life insurance premiums?
Ans: The premium payment duration of a traditional life insurance policy equals the policy tenure. However, the premium payment tenure of a plan varies from policy to policy.
Q: How much tax do I pay on my life insurance premium?
Ans: For LIC term insurance plans where the entire premium is for the life cover, a GST of 18% will be charged on the total premium. In the case of LIC’s single premium annuity plans, a GST of 18% will be charged only on 10% of the premiums, not the whole amount. For LIC’s traditional endowment plans, GST is charged 25% of the premium in the 1st year and 12.5% of the premium payable in subsequent years.
Q: Can I claim tax exemption on the life insurance premium amount?
Ans: You can claim tax exemption up to the maximum limit of Rs.1.5 lakhs under section 80C of the Income Tax Act 1961.
Q: Do you have to pay taxes on the life insurance policy payout?
Ans: No, the payout offered by the life insurance policy is tax-exempt under section 10(10D) of the Income Tax Act.
Q: How do I calculate the maturity amount of my LIC Policy?
Ans: You can use the LIC maturity calculator to calculate your LIC policy maturity amount. You have to input your policy details, including policy terms, sum assured, and premium payment frequency. The LIC calculator will then provide you with an estimate of your maturity amount based on these inputs.
Q: What is the LIC SIP Calculator?
Ans: The LIC SIP Calculator is an online tool designed to estimate investment returns made in LIC mutual funds through the SIP route.
Q: How to use LIC Premium Calculator from LIC’s official website?
Ans: Step 1: Visit LIC’s official website and go to LIC premium calculator page Step 2: Choose ‘select LIC plan’ Step 3: Enter required details such as type of plan, age, policy term, sum assured. Step 4: Then, Calculate the premium of LIC plans.
Q: Which LIC plans have calculators available on the official website?
Ans: When you receive your LIC maturity amount, the insurance company deducts a 5% Tax Deducted at Source (TDS) on the income component of the payment. For example, if your maturity amount is ₹5,00,000 and the income portion is ₹1,00,000, the TDS will be ₹5,000 (5% of ₹1,00,000). The company will then release the remaining amount after the deduction.
Q: How Much LIC is Tax-Free?
Ans: Under Section 80C of the Income Tax Act, you can claim a maximum tax deduction of ₹1,50,000 on your LIC premiums, which also includes other eligible investments like PPF or EPF. The total combined limit for deductions under Sections 80C, 80CCC, and 80CCD is ₹1.5 lakh per year. This means the amount you pay as LIC premiums, up to this limit, is eligible for tax exemption.
Q: Where to Show LIC Maturity Amount in ITR?
Ans: If you are a salaried individual filing ITR-2 for FY 2022-23, you should report the LIC maturity amount under Schedule EI as "exempt income." For those running a business, the maturity income should be disclosed in ITR-3 or ITR-4, also under Schedule EI, as "exempt income."
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark ˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in