How To Find Out The LIC Premium Amount Without Tax?

Before you buy any insurance policy it is important to know the 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. Insurance has been one of the many areas that have been affected by the same.

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.

The 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.

The term insurance policies are the purest form of life insurance out there and offer a death benefit only to the nominated beneficiary of the plan.

This is only done if the insured dies within the coverage period. The 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. The unit-linked plans 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?

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

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 out or calculate LIC installment premium amount without tax?

For this, you 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.
• 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.
• Choose one that you want to buy and click on the button that says Coverage.
• 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.

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.

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.

Also Read: Section 139 (1) of the Income Tax Act | How Section 80C Of The Income Tax Act Works | Section 115BAC of Income Tax Act | Investments Under Section 80EE, 80C, 80D