LIC Premium Without Tax Calculator

It helps users determine the premiums for various LIC policies while clearly distinguishing between the base premium and the additional applicable taxes. 

What is the LIC Premium Without Tax Calculator?

The LIC premium without tax calculator is a feature offered by the LIC of India within the LIC online Premium Calculator tool. This user-friendly calculator enables potential policyholders to compute premiums while keeping taxes separate. Knowing the breakdown of costs can help you better understand the total amount you'll need to pay for your chosen insurance policy.

Key Features of the LIC Premium Without Tax Calculator

The LIC online Premium Calculator offers several important features that enhance its usability:

• Detailed Breakdown: It displays three key components— the basic premium amount, the tax amount, and the total premium amount. This transparency helps you see where your money is going.

• Rider Premiums: If you include a rider with your insurance plan, the calculator automatically reflects the additional premium and corresponding taxes.

• Flexible Payment Options: You can view premiums payable on various frequencies: yearly, half-yearly, quarterly, and monthly. This flexibility allows you to choose a payment plan that fits your financial situation.

• Unlimited Usage: There’s no limit to how many times you can use the calculator, so you can explore different scenarios and options until you find the best fit.

• Input Requirements: To get an accurate estimate, you’ll need to provide details such as your age, gender, desired sum assured amount, and the coverage period.

Why Use the LIC Premium Without Tax Calculator?

The LIC Premium Without Tax Calculator offers several advantages that make it a valuable tool for anyone considering life insurance:

• Budget-Friendly Planning: The quotes generated by the calculator enable you to assess whether the total premium, including taxes, aligns with your budget.

• Customizable Options: You can adjust various parameters, such as the sum assured and policy term, to tailor the insurance plan to your needs.

• Convenience of Online Access: The calculator is available online, which means you can use it from the comfort of your home without needing to meet with an agent.

• Reduced Risk of Miscommunication: Insurance agents may not always provide complete information about taxes and premiums. By using the calculator, you can eliminate the risk of miscommunication and understand your costs clearly.

• Cost-Free Service: The free calculator provides instant results, saving time and money.

Understanding Tax on LIC’s Life Insurance Premium

It's essential to grasp how taxes factor into life insurance premiums. A portion of your premium does not go towards the life cover. Still, it is instead allocated to taxes levied by the Government of India under the Goods and Services Tax (GST) regime, introduced in 2017 to simplify indirect taxes.

Here’s a quick breakdown of the GST rates applicable to different types of LIC policies:

• Term Insurance Plans: For LIC’s term insurance, a GST of 18% is applied to the total premium amount. This means the entire premium is subject to tax.

• Single Premium Annuity Plans: GST of 18% is charged only on 10% of the total premium in the case of single premium annuity plans.

• Traditional Endowment Plans: For these plans, GST is charged at 25% on the premium for the first year and 12.5% on the premiums for subsequent years.

Wrapping It Up

The LIC Premium Without Tax Calculator is an invaluable tool for individuals looking to make informed decisions about life insurance. By clearly displaying the basic premium and additional taxes, it enables potential policyholders to understand their financial commitments better. The calculator is accessible anytime, providing convenience and clarity in your insurance planning journey.

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