Term Insurance 26933 views February 26, 2020

LIC Term Plan Premium Calculator

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 that provide a higher death coverage amount for a low premium. On survival of the insured until the end of the term of the plan, no benefits are paid. In case the plan comes with a return of premium variant, you can get back all your paid premiums upon surviving till the end of the policy term. Life Insurance Corporation of India offers three-term insurance plans at a low premium cost. The premiums payable under these plans depend on various factors that you could see in this post. But before that, let’s check the function of the premium calculator.

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Premium Calculator for LIC Term Plan

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

Factors That Determine the Premium for LIC Term Plans

The premium payable under the LIC Term Plan depends upon the following factors:

  1. Occupation of the Policyholder- In case the policyholder 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– The higher the amount assured in the plan, the higher will be the premium payable. The reason being the higher coverage benefit to the insured individual.
  3. Age of the Policyholder– The age of insured is a very important factor used to determine the premium amount for the term plan. The premium will be more for older individuals as the risk involved for them will be greater compared to their younger counterparts. 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 a longer tenure, the premiums will be higher as the insurance company provides coverage for a much longer period. In addition, the possibility of a claim is much more.
    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 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 an important role in the determination of the premium amount. People with a family history of  as there can be a possibility of genetic diseases such as diabetes, heart problems may have to pay a higher premium amount.

LIC Term Insurance Plans

LIC offers a wide range of insurance products including the best term insurance plans. These plans offer various features and benefits and provide pure protection to the insured. The company offers three-term insurance plans –

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