Surrender Value Calculator for SBI Life Insurance Policies in India
5368
6 min read
Updated on Sep 11, 2023
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 by Mahindra PayBima
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
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.
Thus, if you want to know the LIC installment premium without tax you should know how the taxes apply on the same.
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
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 2023
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.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
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.
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.
For many risk-averse Indian citizens, an FD account is the safest and the most reliable means of securing a lump sum amount in a couple.
Have you ever delayed your ITR filing task until the last moment due to its difficulty? Income Tax Returns, commonly termed ITR, is a form.
Suraj was recently blessed with a daughter, and he wanted to invest in a safe and guaranteed scheme to save some money for her school.
When Sahil lost his job a couple of years back, he was devastated as he had a family of 6 to look after, which was.
Are you well-informed about the various schemes offered by your state government, especially the ones for the old, needy and people with low incomes? Do.
When Soha, a single mother, was considering different investment options to invest INR 10 lakhs for her daughter’s higher education, she wanted a risk-free and.
The Swatantrata Sainik Samman Yojana (SSSY) was introduced as a token of gratitude to the freedom fighters for their contributions to free India. Let’s learn.
As you embrace parenthood and enjoy the bliss of having a child in your life, you also prepare yourself to shoulder some responsibilities of the.
With the changing times, the perspective of women in society has experienced a sea change. From being labelled as a housewife to someone who has.
When it comes to investing in a good financial/investment scheme, there are a host of products available in the market to choose from. Some offer.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
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.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue