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LIC has been a trusted brand offering numerous insurance products and services, which cover people adequately irrespective of their economic background. Having an insurance plan from LIC is definitely recommended for all. However, it is also important to know the various requisites of the policies including the late LIC payment charges. Let us understand its importance in detail.
Paying an insurance premium on time is important because it guarantees the policyholder to continue receiving the financial coverage that the policy offers. If you fail to pay the premiums on time, your policy lapses and if that happens you cease to enjoy the benefits offered under your plan. Similar to buying an LIC premium, it is equally important to stay updated with the prerequisites of the policy including its various conditions. You must know that to keep your policy active and to stay away from LIC penalty for late payment, you must make the LIC policy payment timely.
The grace period is the extra time given by LIC to policyholders if they are unable to make the premium payment on time. This is a 30-day time that starts from the end date of the premium payment during which the insured can pay off the overdue amount.
If a policyholder is paying a monthly premium, the grace period allowed is 15 days, whereas for annual premiums, a 30-day grace period is allowed. Policyholders paying premiums during the grace period are not charged any extra fine or fee. But if the policyholder fails to pay off the amount during this time, LIC will impose a late fee to get the expired policy revived.
To calculate the late fee for LIC premiums, you can use the LIC Premium Payment Calculator for Late Fees. The calculator considers some factors to evaluate the total late fee amount charged by LIC for delayed premium payments. Below are the details that you must submit:
Based on the above details, the LIC calculator calculates the late payment fees.
Let’s take an example to understand the concept better. Let’s assume you have a LIC policy. You were supposed to make the premium payment for the policy in January 2022 but failed to do so due to some unavoidable reason. Now, in January 2023 you want to revive the plan. Here, consider the below details:
If you want to revive your expired LIC policy, you must look at the revival scheme in detail to make the process smooth. However, reviving an expired policy is still better and more cost-effective as compared to buying a new one. This is because a new policy will charge you higher premiums depending on various factors like age and health conditions. Also, you will have to go through the waiting periods like the initial and PED waiting periods if you buy a new plan. Hence, plan revival is a better option.
Late LIC payment charges levied on a policy premium is calculated as per the time lapse between the expiry date and the subsequent months delayed in making the payments.
|LIC Late Fee Charges (Re 1/premium)
Below are some conditions that are required to be noted regarding LIC premium payment:
Also Read: LIC surrender value calculator
In case your LIC premium payment due date expires or you fail to make the timely payment even during the grace period and the policy lapses, you still have options of reviving the policy. There are various schemes as explained below that can be followed to revive a lapsed policy.
# Ordinary Revival Scheme – Under this scheme, the policyholder is required to pay the arrears of all the unpaid premiums of his/her LIC policy in one single payment with interest. There are various terms and conditions that need to be considered while reviving your LIC policy via this scheme. You are also required to offer a good health declaration form along with a medical certificate if required
# Special Revival Scheme – This scheme allows the Date of Commencement (DOC) of the policy to move in a way that the policy doesn’t lapse. So, you can make the payment within the revival period in one single premium. Other documents like medical certificates might also be required like in the above case. Further, you must note that:
# Survival Benefit Cum Revival Scheme – This scheme is used mainly to revive the money back policies. Here, the policyholder can use the survival benefit gained from the policy to revive it. However, this is possible if the date of receiving survival benefit is before the revival date. If the survival benefit amount is less as compared to premium due, the policyholder is expected to make the additional payment from his/her pocket. And if the survival benefit amount is more than the due payment, the extra amount is paid back to the policyholder.
# Loan Cum Survival Scheme – Under this scheme, if the customers of LIC policy have acquired a surrender value on the policy, he/she can take a loan against it to revive the lapsed policy. Thus, you can pay the premium arrears as a loan from the accumulated amount available.
Also Read: Best LIC Policy for Girl Child
There are two ways to make your LIC policy premium payment. They are online and offline.
Also Read: How to surrender lic policy online
As discussed above, your LIC policy can lapse if you do not make the payment on time and lead to the discontinuation of many benefits. Thus, it is important to pay the LIC premiums on time to continue availing the various benefits offered under your plan.
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To pay LIC premium after due date, you can:
1. Visit the official website of LIC
2. Go to Online Premium Payment option on the home page
3. Click on the tab of Pay Direct
4. You can select the LIC Renewal of premium or revival of policy option as per need
5. Now choose the Proceed button and make the payment
It is done
If your LIC of India payment due date expires and you miss out on paying the premium, you can use the grace period to make the payment. Here's the process to make the payment online:
# Visit the official website of LIC
# Click on Online Premium Payment option on the home page
# Go to Pay Direct tab
# Now opt for the Premium Renewal or revival of policy option as per need
# Choose the Proceed button and make the payment
If you miss the grace period to pay your LIC premium payment, your policy will lapse. In that case, to revive a lapsed policy, you might have to pay a penalty in the form of extra fees as well as might have to go through the renewal process of the policy once again.
Yes, you can pay your insurance premium during the grace period if you miss the last date of payment. However, It might lapse if you miss the payment during the grace period.
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