Insurance Plans 18446 views February 26, 2020

Premium Calculator for LIC Term Plan

LIC is one of the largest insurance providers in India and is owned by the government of India. It offers the best term insurance plans. Term insurance plans are pure protection insurance plans that provide coverage at a low premium cost and covers the death risk of the insured individual during the term of the plan. On survival of the insured until the end of the term of the plan, no benefits are paid. These plans only cover the death benefit and do not offer maturity benefit to the insured. Term insurance policies offer financial security to the family of the insured in his/her absence. One should opt for higher sum assured in the plan to enjoy higher financial coverage. LIC offers three-term insurance plans with low premium cost. The premiums to be paid on these plans depend on various factors.

Term Insurance

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Factors to determine the premium for LIC term plans

The premium required to be paid for LIC Term Plan depends upon the following factors:

  1. Occupation of the policyholder- In case the holder of the policy is engaged in a risky occupation such as sea diving, fire fighting, etc then the amount of premium to be paid for the term insurance policy will be higher and vice versa.
  2. Sum assured in the plan- Higher the amount assured in the plan, higher will be the premium to be paid as it involves higher coverage benefit to the insured individual
  3. Age of the policyholder- Age of insured is a very important factor that is used to determine the premium amount for the term plan. Higher will be the premium for the older individual as the risk involved increases with the age of the policyholder. Younger individuals can get the term insurance coverage at a lower premium cost. It is hence advised to buy a term plan at a younger age for easy and low premium cost.
  4. The health of the policyholder or any medical diseases- the Higher risk is involved for people with high sugar, high blood pressure, etc which involves higher premiums on the plan
  5. Tenure of the policy- For longer tenure, the premiums will be higher as the insurance company provides coverage for longer for much longer period of time and has a high risk of a claim.
    Frequency of premium payment- The frequency of the payment of premium also determines the amount of premium to be paid towards the plan
  6. Gender of the policyholder- Premiums for female individuals are lower as compared to premiums for male individuals.
  7. Habits of the policyholder- In case the insured has smoking or drinking habit which impacts the health to a great extent and also increases death risk, the premiums on the plan will be higher as there is a higher risk of a claim
  8. Family history- Family history also plays important role in the determination of premium to be paid towards the plan as there can be a possibility of genetic diseases such as diabetes, heart problems, etc which increases both the risk and the premiums to be paid for the term plan

LIC Term Insurance Plans

LIC offers a wide range of insurance products which include best term insurance plans. These plans offer various features and benefits and provide pure protection to the insured. There are three-term insurance plans offered by LIC:

  1. LIC Tech Term
  2. LIC Jeevan Amar plan
  3. LIC Anmol Jeevan II plan

Premium Calculator for LIC Term plan

If you want to calculate the amount of premium that you will be required to pay for the term insurance plans offered by LIC then you can make use of LIC premium calculator available on the official website of LIC. It is an online tool which gives an approximation of the premium to be paid for the plan. It is free of cost and can be used as many times as you want. You are required to fill in the sum assured in the plan, the frequency of premium payment, age of the insured, the tenure of the plan, etc and the calculator will calculate the amount of the premium to be paid as per the frequency selected by you. The premium calculated is a approximation amount as more details may be required by the insurance company which may effect the calculation of the premium for the plan

Premium Calculator for LIC Term Plan Conclusion

Term insurance plans is a good way to build financial support for your family and are the most affordable type of insurance plan. To keep the premiums on the term insurance plans offered by LIC you can keep the factors affecting the premium cost in check and ensure better financial coverage at lower premium amounts. LIC term plans are best plans which can easily suit your needs and requirements.

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