Life Insurance Corporation (LIC), Established in 1956 is one of India’s oldest, reliable, prominent and a trusted insurance company. LIC has been providing insurance to millions of Indians. Currently, LIC has expanded its products and to cater to the insurance and financial needs of its customers.
LIC Payment Methods
LIC offers numerous methods through which customers can pay for their policies. Payments for LIC policies can be done online on the LIC website, at authorised banks, franchises, approved LIC agents and Paytm.
View details below for payment methods:
LIC Online Payment – For Registered/Non-registered Users
The option to make premium payments online is now possible by LIC, this makes payments efficient and secure for customers. The payment process for registered and non-registered users are different but nevertheless customers will benefit from the same efficiency and security of making payments anywhere and anytime.
Registered policyholders can choose to pay their policy premium via the e-Services facility offered on the LIC website.
The steps are as follows:
- Step 1 – Visit LIC India website. Select from the two option “Pay direct” or “Through customer portal”.
- Step 2 – The following options will ask you to provide details and credentials of your LIC policy. The LIC login ID and password will be required if you select the customer portal option. Provide the necessary information and click on the Submit button.
- Step 3 – Once clicked, you will be asked to provide your policy number and the premium amount payable.
- Step 4 – After you have entered the details, you will be able to view all of your enrolled policies.
- Step 5 – After viewing your policy details on the portal, you will be able to see an option “Pay Premium online” to enable you to make the payment online.
- Step 6 – From this page, select the respective policies for which you want to pay the premium for and click the Submit option to confirm your selection.
- Step 7 – You will be redirected to the payment gateway page where you can select to make the prefered payment option either net banking or credit/debit card.
LIC Offline Payment
The National Payments Corporation of India (NPCI) has implemented a service comprising of an electronic payment gateway known as National Automated Clearing House (NACH). NACH will soon replace the existing ECS created by the RBI.
Under the NACH system, mandate forms are to be submitted to the respective branch of LIC for premium payment.
Premium can be paid through the ATMs of the following Banks:
1. Axis Bank
2. Corporation Bank
This facility is absolutely free for all customers. The customer has to register his policies through the respective bank website.
LIC Payment Through Bank
LIC has partnered with two of India’s leading banks (Axis & Corporation) to provide an added convenience to all their customers in making premium payments for LIC policies. LIC customers can make their policy premium payments at Axis Bank or Corporation Bank branches as well.
Here are some points to remember regarding payment through Bank:
|Payment can only be done for LIC policies that are still active||Payments will not be accepted for Salary Savings Scheme (SSS) policies|
|Premium payment can only be done 30 days in advance for regular life insurance policies||Term insurance policies & advance premium payment can only be done 15 days before due date|
|The authorized bank can issue a valid signed receipt upon receiving payment||Premium payment for ULIP and Health policies are not accepted
|Payments at authorized bank branches are accepted either in the form of cash/ cheque or demand draft||Premiums cannot be paid for the coming financial year|
|Late premium payments attract a late fee at the rate of 8% of the premium|
LIC Payment Through Agent/Merchant
LIC has authorized selected personnel or agents who can collect premiums on behalf of them. Here are some important details regarding premium collection by authorized personnel
- Collection of premium by authorized personnel will be done for insurance, ULIP policies but not for health insurance.
- There is no service charge or fee levied for usage of service through authorised personnel.
LIC Payment Through Debit/Credit Card
You can now make LIC premium payment for your policy using your debit/credit card. The process is simple and will be undertaken via the IDBI bank gateway. To start off with the process to make premium payment using your debit card/ credit card, follow the below-mentioned Steps to make payment:
1. After logging into LIC payments website, click the circle against ‘IDBI Gateway’, Identify your card type (debit/credit) and enter the amount of premium you have to pay to find out the tax and other charges applicable with your payable amount. click, Submit after completing the process.
2. You will be now be redirected to the page where you will be asked to enter the details of your card i.e. the debit/credit card number, card’s date of expiry, CVV2/CVC2 number, your name as on the card, email ID and mobile number. You will also have to enter the “captcha code” displayed in the box. Finally, you will be asked to enter a one time password (OTP) or ATM pin to complete the payment in full.
3. Click on Pay, you will receive a receipt regarding the payment made on your email id that you have registered with your LIC policy.
Benefits of Payment with Debit/Credit Card
- No further registration is required between you and the service provider
- There is no delay in time from the instance of payment to obtaining receipts.
- A secured method, as the data of your policy is not shared between LIC, the banks or any third party over the internet as only the amount to be paid is data encrypted and transported through a safe medium. The login id at both the sites (LIC and Bank) is known only to you.
- All of the above processes are free of charge for you to avail.
LIC Premium Payment with Paytm
LIC policy premium can be paid with Paytm either by Paytm app (android & apple) or Paytm website.
Once you open Paytm app or website, you will see various bill payment options to choose from. Select the Insurance icon and then select LIC from the option. Refer screenshot above.
Following this, you need to enter your respective LIC policy number and proceed to make the payment using Paytm wallet or pay through Paytm using other options such as credit card, debit card or internet banking.
After successfully paying LIC policy, you will receive a confirmation message via Paytm notification, SMS and email showing a successful payment message.
Grace Period For LIC Premium Payment
With the exception of some plans, In case you have not paid LIC premium within the scheduled due date, LIC grants you a relaxation time frame to make payments without the payment of interest on the premium. This particular time period is called the grace period.
The grace period for policies having a monthly mode of payment premium is 15 days from the due date.
The grace period for policies where the premium payment mode is quarterly, half-yearly or even yearly is one month from the due date.
If you are considering a new policy or renewing one, LIC offers a great tool known as an Online Premium Calculator. This calculator helps you to generate an instant quotation for Premium that you require.
The illustration below explains the usage of the LIC Calculator:
Income Tax Benefits on LIC policy
Sec. 80 C
|Sec. 80 CCC||Sec. 80 D||
|Deduction of tax allowable from Income for payment of Life Insurance Premium||A deduction of tax to an individual for any amount deposited from taxable income in an LIC plan for receiving pension is allowed||Tax Deduction up to Rs.25,000 if an amount is paid to keep a health insurance of assessee or his family||Deduction from total income of an individual of up to Rs.75000 allowable on the amount deposited with few schemes from LIC for maintenance of a handicapped dependent (Rs.1,25,000/ in instances where handicapped dependent is suffering from severe disability)|
LIC Policy Guideline
When To Pay LIC Premiums
LIC usually sends premium notices one month in advance to the due date of the premium
The first page of the policy bond highlights the months in which premiums are due.
How To Pay Premiums
The various methods of paying LIC premiums are:
- By cash, local cheque (subject to realization of the cheque), Demand Draft at Branch Office.
- Demand Draft, cheques or Money Order be sent by post.
- Standing instructions from your respective bank to remit the premiums.
- Through Internet banking
- Premium payment can also be made through ATMs of Corporation Bank and UTI Bank.
- Premium payment can also be made through Electronic Clearing Service (ECS)
How to check LIC Policy Status
Status of your policy indicates if your policy is active or has lapsed due to non-payment of premium or policy has crossed expiry. Policy status also provides other important information with respect to your policy, which you can utilise for your reference.
The status of your policy is available at the branch that served your policies.
How to Revive a Lapsed LIC Policy
If your policy has lapsed due to non-payment of premiums or other criteria within the due date, the terms and conditions of that policy are void, until you revive your policy.
To revive a lapsed policy, a payment of the accumulated premium along with interest as well health requirements of the concerned individual as required.
Avail Loans On Policies
Most LIC plans are endowment in nature and will be eligible to stand as a collateral to raise a loan against your require funds.
You can either repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments.