LIC premium without tax: How to calculate LIC installment premium amount without tax using LIC premium calculator

3626

6 min read

Updated on Jan 30, 2023

Before you buy any insurance policy it is important to know the LIC installment premium without tax and how to calculate lic premium without tax so that you have a fair idea of how much money you would be spending in this regard.

LIC (Life Insurance Corporation of India) is perhaps the biggest provider of insurance policies in India. It was created on 1st September 1956 by the government of India. It presently has over 290 million policyholders to be precise, which is a staggering number by any count. The GST (goods and services tax) regime has come into being from 1st July 2017. Term Life Insurance has been one of the many areas that have been affected by the same.

Visual Stories

PayBima's Khushi Ka Tohfa

What is the Need to Know the LIC Installment  Premium Amount without Tax?

For many different kind of policies, the applicable tax rate has gone up by 3%. This has also caused a fair amount of confusion among many policyholders as they often do not know the tax rate that would be applied to their policies. They also want to know how much premium they would have to pay apart from the tax. So, you must know the installment premium without tax so that you can calculate the money you would spend on the policy. This would also help you judge if the returns on the policy are good enough or not.

Also Read: How To Surrender Lic Policy Online

Different Kinds of Policies Sold by Life Insurance Corporation of India (LIC)

The tax that you pay on your policy depends on the type of policy that you buy. So, as such, it is an important factor when you want to know how to calculate LIC premium without tax. The policies sold by LIC can be categorized into three categories – term insurance policies, unit-linked policies, and endowment policies.

  1. Term Insurance policies are the purest form of life insurance out there and offer a death benefit only to the nominated beneficiary of the term insurance plan. This is only done if the insured dies within the coverage period.
  2. Endowment Policies offer you a death benefit as well as a maturity benefit. The policyholder gets the maturity benefit if they survive the policy coverage period.
  3. Unit Linked Policies offer the combined benefits of life insurance coverage along with the potential to create wealth. A part of the premium in this case is invested in debt or equity instruments while the remaining is used to pay the premium for the life coverage.

Thus, if you want to know the LIC installment premium without tax you should know how the taxes apply on the same.

How Does GST Affect the Premiums of Life Insurance Policies (LICs)?

Do you want to know how to know LIC premium without tax? Then this is a table that should be of interest to you:

Type of insurance The previous tax rate under the service tax regime The new tax rate under the GST regime The area where the tax is applied
Term plans 15% 18% premiums paid for every year of coverage
Endowment plans 3.75% 4.50% single-premium or first-year plans
Endowment plans 1.88% 2.25% premium renewal
ULIP (unit-linked insurance plan) plans 15% 18% charges for fund management and premium
Annuity plans 1.50% 1.80% both regular-premium and single-premium plans

So before you try to find out what is installment premium without tax in LIC you must understand how GST has affected the premiums that you pay for your life insurance policies. We hope that the data provided in the table above would be helpful in this regard. As you can see from above, GST has had a say on both ULIP plans and term plans among the life insurance plans. It has affected several other forms of insurance as well.

Also Read: Senior Citizens Can Avail Tax Break on Interest Income Under Sec 80TTB

How to Find or Calculate LIC Installment Premium without Tax using LIC Premium Calculator Online?

  1. Using the premium receipt is the first step in figuring out your installment premium without tax. For instance, the top of the LIC receipt has information on the overall premium amount and the cumulative GST amount (CGST + SGST).
  2. Another method is to use premium calculators online, for this you first need to know how to use the LIC premium calculator. The basic steps for the same could be enumerated as below:
  • Visit the official website of LIC at www.licindia.in
  • From there you need to visit LIC Online Service Portal.
  • Over there you would find the option name ‘Premium Calculator’. When you click on it a new page would open up.
  • Over there you would have to fill up details such as your name, mobile number, date of birth, email ID, and gender.
  • After that click on the button that says Next.
  • Here you would get three options – Quick Quote, Compare Quotes, and Cancel.
  • If you click on Quick Quote you would get a drop-down of the various policies that are sold by LIC including term insurance plans, endowment plans, unit-linked plans etc.
  • Choose one that you want to buy and click on the ‘Coverage’ button.
  • This would provide you with all the coverage-related details that you want to know about the policy.
  • Once you have filled in all the necessary details in this case click on the button that says Quote.

This would show you the basic premium of the policy and the taxes that would be applicable for the same. So, if you want to know the LIC premium without tax this is the way that you would have to go about it.

Also Read: Best Term Insurance Plan in India 2022

Conclusion 

There are two major ways in which you can pay the premiums of these policies – in installments and at one go. In the first case, knowing the installment premium without tax would be helpful for you as far as planning your finances is concerned. You can pay the premiums once each quarter as well. Before the internet came about people would simply queue up outside the LIC offices nearest to them to pay their premiums.

Also Read: Section 139 (1) of the Income Tax Act

However, thanks to the emergence of the internet it has now become so much easier to pay the premiums. The same can also be said of finding out your LIC installment premium without tax. It must be said that phenomena like internet banking have made the entire process so much more convenient than it was earlier. As we have said already, LIC has an official website where you can log on and pay your premiums in any way you want to. The most popular options, in this case, are debit card, net banking, credit card, and UPI (united payments interface), to name a few.

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

FAQs: How to Calculate LIC Installment Premium Amount Without Tax Online using LIC Premium Calculator

How is the LIC premium calculated?

LIC premium can be calculated using an LIC premium calculator, a tool which is easily available online. All you need to do is enter your details on the online calculator tool, such as the type of plan, age, term of the policy, and the sum assured. The tool would auto compute the premium amount for you.

What is the installment premium in LIC?

LIC installment premium refers to the amount payable by the policyholder to the insurance company in regular installments, such as monthly, quarterly, every six months, or annually. In return for the premium installment, the insurer promises to provide coverage (maturity benefit) to the policyholder.

How can I check my LIC installment premium without tax?

The first step is to use the LIC premium calculator online to determine the LIC premium amount for the intended plan. With the same calculator tool, the installment premium payable without tax can be computed. This is also known as the basic premium.

How do I know my LIC installment amount?

In order to calculate the LIC premium payable in installments, you can follow these steps on the official website of LIC India:

> Click on the premium calculator tool available on the website www.licindia.in
> You would be required to fill in your basic details such as name, age, date of birth, gender, mobile number, country code, email ID, and the like.
> Next, click on the Quick Quote tab.
> You’d then be asked to choose your plan of choice from the various plans displayed.
> Click on coverage and enter the details required, such as sum assured, term of premium payment, additional coverage required, and the like.
> Click on Quote and you will be able to see the computed premium.

Other Investment Products

Mar 17, 2022
SHARE THIS ON
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back