Online Premium Payment 149 views June 24, 2021

LIC Premium Payment

When you choose a LIC policy, you need to pay the premium towards it to enjoy services without any interruption. People often get confused about different aspects associated with the LIC premium payment, such as when to pay, how to pay, benefits of timely premium payment, grace period, payment frequency options, etc.

Keeping this in mind, we will be discussing everything related to the LIC premium payment so that you don’t have doubt left in your mind. Read on to know more!

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When to Pay your LIC Premium?

Many people ask this question about when to pay the LIC premium. You can look at the due premium date of a month on the first page of your policy bond. This date may change from one customer to another. LIC also sends the notice regarding the payment of your premium one month in advance of your due premium date. However, you should remember to pay your premium on time even if notices from LIC do not reach you due to a postal delay.

How to Pay Your LIC Premium?

Now that you understand when to pay your LIC premium, you must be wondering about the methods by which you can pay the same. LIC offers multiple methods with which you can pay your LIC policy premium. You can check them below.

  1. Pay Direct Option – Without Login (Fill in a few details such as name, date of birth, policy number, installment premium (without tax), registered mobile number, and email ID and pay via net banking, debit or credit card)
  2. Through Customer Portal (Login to your account and choose the policy for which you want to make the payment)
  3. With LIC PayDirect (You can also use this app to pay the loan interest or full repayment)
  4. Via UPI-enabled Applications (Download them from respective app stores and pay the premium in a hassle-free manner)
  5. By Cash, local cheque, or Demand Draft at the nearest branch office
  6. Demand Draft, Cheques or Money Order sent by post
  7. At any of the LIC Branches across India (As 99% of our Branches are networked)
  8. Via ATMs of Corporation Bank and UTI Bank
  9. Electronic Clearing Service (ECS) (Available at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijayawada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa, Nagpur, Secunderabad & Visakhapatnam)

Benefits of Paying LIC Premium on Time

If you make a LIC premium payment on time, you can enjoy several benefits that you could see below.

  1. If you decide to discontinue your policy to get the surrender value, you can get it only if you pay the premiums on time. The reason being the surrender value is payable only after three years of full premiums have been paid to LIC.
  2. If the policyholder dies during the policy period, the nominee or beneficiary will get death benefits only if all the due premiums have been paid up to the date of such an eventuality.
  3. Similar to death benefits, LIC will not give any maturity benefits if you haven’t paid the premium on time. (Maturity benefits apply to plans other than pure protection variants. In case you have a return of premium activated on a term plan, the maturity benefit will be payable in case you outlive the policy term.)
  4. You can get a loan against your endowment policy (up to a definite percentage of surrender value) if you pay your premiums on time.

How Does LIC Life Insurance Policy Rider Premium Work?

If you want to enhance your overall coverage, you can also choose from a wide range of rider options and add the same to your base life insurance policy by paying an additional premium. Many people are confused about the LIC Rider Premium Payment – whether to pay it separately or along with the base policy.

Well, the premium for your rider will be paid along with the premium of your base life insurance policy and cannot be paid separately. The additional premium paid towards the rider will not be considered when calculating the death benefit and surrender value of the base policy.

You can check the popular LIC rider options mentioned below.

  1. Accidental Death Benefit Rider
  2. Accidental Death and Disability Benefit Rider
  3. Accident Benefit Rider
  4. Premium Waiver Benefit Rider
  5. New Critical Illness Benefit Rider
  6. New Term Assurance Rider

What are the Different LIC Premium Payment Frequencies?

If you cannot pay the premium every year on a lump sum basis, you can also choose from other premium payment frequency options according to your convenience. These options are Half-yearly, Quarterly, and Monthly. Do remember that your grace period will also depend on the frequency chosen by you.

However, the premium amount may be higher on choosing these frequencies compared to the annual mode due to the mode loading factor. It is a percentage of the annual premium of your LIC policy. This factor may be different from one plan to another.

For example, you can have a look at the loading factors of the LIC Bachat Plus Plan below.

Premium Payment FrequencyLoading Factor (as % of the annual premium)
YearlyNil
Half-yearly1.50%
Quarterly2.50%
Monthly3%

Note: You should check your policy document before choosing a LIC policy to understand the mode loading factor.

What is the Grace Period for Premium Payment?

LIC offers a definite time within which you can make the payment without any extra interest on your premium in case you miss your premium payment due date. This timeframe is known as the grace period (not applicable for some plans) and remains for 30 days in the case of annual, half-yearly and quarterly renewals and 15 days for monthly renewals.

How to Revive Your LIC Insurance Policy?

If you miss the premium payment even within a grace period, your policy gets lapsed. However, you can revive the same within 5 years from the date of the first unpaid premium along with the penalty using any of the following methods.

  1. Ordinary Revival
  2. Revival of Non-medical Basis
  3. Revival on Medical Basis
  4. Special Revival Scheme
  5. Revival by Installment Method
  6. Loan cum Revival Scheme
  7. Survival Benefit cum Revival Method

Note: Keep your policy in force to ensure that your family stays financially protected from any unforeseen situations. That can be ensured by paying the premium on time.

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