How to calculate LIC Premium amount without tax using calculator
An insurance premium is the amount paid by a policyholder to an insurance company to avail the benefits of an insurance policy. In the case of LIC (Life Insurance Corporation of India), the premium amount varies depending on several factors such as age, policy type, sum assured, policy term, and payment frequency.
Table of Content
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What Does Insurance Premium Mean?
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How Do LIC Insurance Plans Work?
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Why Is It Important to Know LIC Installment Premium Without Tax?
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What Is an LIC Premium Calculator Without Tax?
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Types of LIC Policies and Their Tax Treatment
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How Premium Payment Frequency Impacts LIC Installments
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How to Find LIC Premium Without Tax?
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GST Rates on LIC Life Insurance Premiums (Applicable in 2026)
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How to Calculate LIC Installment Premium Without Tax Using LIC Premium Calculator (Step-by-Step)
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Advantages of Using LIC Premium Calculator
Before purchasing any LIC policy in 2026, it is essential to understand the installment premium without tax. Knowing the base premium (exclusive of GST) helps you plan your finances better and evaluate whether the policy offers value for money.
To simplify this process, LIC provides an online LIC premium calculator, which helps policy buyers estimate the premium payable and clearly identify the tax component.
What Does Insurance Premium Mean?
An insurance premium is the periodic payment made by the policyholder to keep the insurance policy active. In return, the insurer provides financial protection or maturity benefits, depending on the policy type.
The premium amount is calculated based on:
- Age of the policyholder
- Policy type and term
- Sum assured
- Premium payment mode
- Applicable taxes (GST)
Using an LIC premium calculator makes this calculation easy and transparent.
How Do LIC Insurance Plans Work?
LIC offers a wide range of life insurance products to cater to different financial goals. These include:
- Term insurance plans for pure life cover
- Endowment plans for savings and protection
- ULIPs (Unit Linked Insurance Plans) for investment-linked growth
- Child plans for education and future needs
- Pension and annuity plans for retirement planning
Depending on the policy, the insured may receive:
- The sum assured
- Accrued simple reversionary bonuses
- Final additional bonus, if applicable
- Maturity benefits (for savings-oriented plans)
Why Is It Important to Know LIC Installment Premium Without Tax?
Since the introduction of the GST regime on 1 July 2017, life insurance premiums attract GST at different rates depending on the policy type. Many policyholders only look at the total premium payable and overlook the tax component.
Knowing the LIC premium without tax helps you:
- Understand the actual cost of insurance
- Plan monthly, quarterly, or annual expenses accurately
- Evaluate policy returns more realistically
- Avoid confusion during premium payments
This is especially useful for long-term policies where premiums are paid over many years.
What Is an LIC Premium Calculator Without Tax?
An LIC premium calculator is an online tool that helps you estimate:
- The base premium (excluding GST)
- The GST amount applicable
- The total premium payable
- Estimated maturity benefits (for savings plans)
By entering basic details such as age, sum assured, policy term, and premium frequency, you can instantly get a premium breakup before purchasing the policy.
Types of LIC Policies and Their Tax Treatment
Understanding the policy category is crucial when calculating LIC premium without tax.
1. Term Insurance Plans
- Provide only death benefits
- No maturity benefit
- GST is applied on the entire premium amount
2. Endowment Insurance Plans
- Offer both death and maturity benefits
- Lower GST rate compared to term plans
- GST varies for first-year and renewal premiums
3. ULIPs (Unit Linked Insurance Plans)
- Combine insurance and investment
- GST is charged on fund management and premium-related charges
- Each policy type has a different GST structure, which impacts the final premium amount.
How Premium Payment Frequency Impacts LIC Installments
The frequency at which you choose to pay your LIC premium—monthly, quarterly, half-yearly, or annually—can also influence the final installment amount. While the base premium without tax remains the same, LIC may apply a modal loading for non-annual payment modes. This means policyholders opting for monthly or quarterly installments may pay slightly more over the year compared to annual premium payers. Understanding this distinction helps you calculate the true LIC installment premium without tax and choose a payment mode that aligns with your cash flow and financial planning strategy.
How to Find LIC Premium Without Tax?
You can find the LIC premium amount excluding tax through the following methods:
- Premium Payment Receipt
The receipt clearly mentions the base premium and GST (CGST + SGST) separately.
- Policy Bond Document
The policy bond issued at the time of purchase includes a detailed premium breakup. - LIC Customer Portal
Premium paid certificates and policy status reports show tax and premium details separately.
These methods help you verify the premium without tax even after policy purchase.
GST Rates on LIC Life Insurance Premiums (Applicable in 2026)
| Type of Insurance Plan | GST Rate | Applicability |
| Term Insurance Plans | 18% | On entire premium |
| Endowment Plans (Single / First Year) | 4.5% | On first-year premium |
| Endowment Plans (Renewal) | 2.25% | On renewal premiums |
| ULIPs | 18% | On charges and premiums |
| Annuity / Pension Plans | 1.8% | Regular & single premium |
​​​​GST rates remain unchanged in 2026 unless revised by the government.
How to Calculate LIC Installment Premium Without Tax Using LIC Premium Calculator (Step-by-Step)
Follow these steps to calculate LIC premium without tax online:
Follow these steps to calculate LIC premium without tax online:
- Visit the official LIC website at licindia.in
- Navigate to the LIC Online Services Portal
- Click on Premium Calculator
- Enter required details such as:
- Date of birth
- Gender
- Policy type
- Sum assured
- Policy term
- Choose Quick Quote to view premium estimates
- Submit the details and click Get Quote
- The calculator will display:
- Basic premium (without GST)
- GST amount
- Total premium payable
This is the most reliable way to know the LIC installment premium without tax before purchasing a policy.
Advantages of Using LIC Premium Calculator
Using an online LIC premium calculator offers several benefits:
- Saves time and effort
- Can be accessed anytime, anywhere
- Helps compare multiple LIC plans easily
- Provides accurate premium and tax breakup
- Reduces dependency on manual calculations
- Enables informed financial decision-making
FAQs: How to Calculate LIC Installment Premium Amount Without Tax Online using LIC Premium Calculator
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.
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.
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.
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.
An insurance premium is the amount of money that an individual is expected to pay to avail the benefit and coverage of an insurance policy.
LIC Life insurance plan is a type of insurance contract. Here, the policyholder buys a life insurance policy and agrees to pay a premium to keep the coverage intact for a particular duration of time. The insurer in return pays out a death benefit to the nominee of the insured in case of unfortunate demise of the person during the policy year.
The LIC Premium Calculator is an online tool that helps in ascertaining the approximate amount of money that a policyholder has to pay as premium.
The LIC premium calculator helps policyholders to calculate the premium and maturity amounts of different policies by submitting details of certain factors like age, income, policy duration and so on. The calculator allows you to evaluate the premium as per monthly, quarterly, half-yearly, and yearly estimates and make it easy for the user to choose a policy.
To Calculate LIC premium without tax, you can subtract the tax amount from the gross premium by multiplying the gross premium by the tax rate. After that, you can subtract the total amount from the gross premium.
Example: If the gross premium is Rs.10,000 and the tax rate is 10%, the premium without tax would be Rs.10,000 - (Rs.10,000 x 10%) = Rs.9,000
Easy-to-use tool
Free tool available online
Can be used as many times as needed
Allow comparing plans from different insurers
LIC premium can be paid on an annual basis, or semi-annually, quarterly, or even monthly. It can be done via various online modes of payment or via offline ways by visiting the LIC office.
Author Bio
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 21 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.
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