How To Find Out The LIC Premium Amount Without Tax?

The Life Insurance Corporation (LIC) of India is arguably India’s premier insurance provider. Established on 1^st September 1956 and owned by the Government of India, it currently has a staggering number of policyholders, over 290 million, to be exact. From 1^st July 2017, India saw the Goods and Services Tax (GST) come into effect. Insurance was one area that was also impacted by GST. Many types of insurance witnessed an increase of 3% on the prevailing tax amount. This has led to some confusion among policyholders who are often unsure what the tax rate is and what their premium amount excluding it.

• Types of insurance sold by the LIC of India
• Know the Impact of GST on life insurance premiums
• How are LIC premiums paid?
• The LIC premium calculator
• Find out the LIC premium amount without tax

Read on to find out which insurance types were affected by the increase in the tax rate as well as how to find out LIC premium without tax.

What are the types of insurance sold by the LIC of India?

There are three types of life insurance available to Indians from LIC of India, they are:

1. Term insurance policies are basic life insurance plans that offer a Death Benefit only to the nominees of the policyholder if the insured person passes away during the coverage period. Whole life plans are term plans with unlimited tenure.https://livlonginsurance.com/blogs/insurance-companies/life-insurance-corporation-of-india
2. Endowment policies, these insurance plans have a Maturity Benefit as well as the Death Benefit. The Maturity Benefit is paid to the policyholder if he or she survives the coverage period. These plans may also offer a fixed sum of income on a regular basis, similar to a pension. Money-back insurance plans are anticipated endowment plans. Some child insurance plans are either endowment plans or money-back plans.
3. Unit-linked Insurance plans, these insurance plans combine the benefit of life insurance coverage along with the potential for wealth creation. A part of the premiums paid is assigned to the life cover component, while the rest is assigned to a fund that invests in equity or debt instruments or a combination of the two.

The other type of insurance plan sold by The Life Insurance Corporation (LIC) of India is an annuity plan. There are 2 types of annuity plans offered by LIC- Deferred annuity and immediate annuity plans.

In deferred annuity plans, the corpus is accumulated over a period of time and then on vesting, the annuitant has the option to choose for pension as per the options provided. In immediate annuity plans, the entire premium is paid in a lump sum, and when the annuity begins the next month as per the annuity option selected.

What was the impact of GST on life insurance premiums?

Before understanding how to find out LIC premium amount without tax, we must first understand how the GST affected life insurance policies in the first place. The GST saw an increase in tax rates on many types of insurance including life insurance. All private and public insurance providers, including the LIC of India, were subject to the same rule. The tax rate impacted both new insurance policies as well as all existing policies.

Here is a table illustrating the change in tax rates for life insurance policies:

How are LIC premiums paid?

LIC premiums may come in a single premium payment format or they may be recurring premiums. These recurring premiums could be once a year (yearly), monthly, or quarterly. Before the advent of the internet, policyholders would queue up at their nearest LIC office and pay their premiums in person. Today, with the mass emergence and acceptance of the internet and internet banking, premium payment is far more convenient.

LIC has a website on which you can log on and then pay your premiums online using a debit card, credit card, net banking, or UPI options. You could also set up a convenient electronic clearing system (ECS) mandate so that the premium amount goes directly from your bank without you needing to log in to any account. Policyholders can pay their LIC premiums online either with or without registering with the LIC website. This means that you do not need to be a registered user on the LIC website to pay your premiums online.

Moreover, LIC also offers three official apps through which you can pay your premiums online and keep a track of your insurance policies all with a few clicks on your smartphones.  You can download the three official LIC apps through the Google Play Store or Apple’s App Store. The names of the LIC apps are LIC Customer, LIC Pay Direct, and My LIC.

Internet banking has certainly proved to be a driving force in how policyholders can deal with their insurance premium payment. For policyholders wondering how to find out the LIC premium amount without tax, the LIC premium calculator has the answer.

The LIC premium calculator – How to Use

Before we find out how to find out the LIC premium amount without tax, we must understand how to use LIC’s premium calculator. The reason for this is that it is the calculator that will not only calculate your total premium amount but also the basic premium excluding tax.

How to Use LIC Premium Calculator to Find ouhttp://www.licindia.int the LIC premium Amount Without Tax?

Step 1: The first step is to visit the official LIC website at www.licindia.in.

Step 2: From there you should visit the Customer Portal; on the right-hand side of the page, you will find LIC Online Service Portal.

Step 3: Under LIC Online Service Portal, you will find the ‘Premium Calculator’ option. When you click on this tab, a new page will open up.

Step 4: On the new page, you will have to input the following details—your name, date of birth, gender, mobile number, and email ID.

Step 5: Once you fill in the appropriate details, you can click on the ‘Next’ button towards the bottom of the page.

Step 6: There will be a pop up showing the following three options:

• Quick Quote which provides you with a life insurance quote calculated as per the details provided by you
• Compare Quotes which compares the quotes of various life insurance plans
• Or Cancel which cancels any further action

Step 7: Suppose you click on the Quick Quote option, a new page will open with various life insurance policy plans including term insurance plans, endowment plans, unit-linked plans, whole life plans, and so on.

Step 8: Choose a LIC policy of your choice and then scroll down to the bottom of the page, click on the ‘Coverage’ button.

Step by step process:

A new page will open up which will show you some of the following details as per the chosen policy plan (whether it is a term plan, endowment plan, or ULIP plan):

• The base coverage options such as endowment, investment (for ULIPs), or Death coverage for term plans
• The number of lives
• The calculation basis could be Coverage or Premium for endowment plans, or payment frequency and the premium amount under ULIPs, or premium payment type (single, regular, or limited), and premium paying term for term plans
• The sum assured
• The Policy term (coverage period)
• ULIP plans will have an option for the ‘funds opted for’
• Additional coverage such as Accidental Benefit may be available under certain policies.

Choose or input each detail as per your requirement and then click on the ‘Quote’ button at the bottom of the page.

A new page will then open that will show you your basic premium (without tax) in rupees and the total tax amount in rupees as well. Together, the two amounts will make up the total premium amount. So this is how to find out the LIC premium amount without tax using the LIC premium calculator.

Conclusion

It is easy to assume that figuring how to find out the LIC premium amount without tax is an arduous task. But the truth is that it could hardly be any easier. It takes just a few clicks and the basic premium amount is laid out for you without any hassle.