LIC Online Payment: How To Pay Premium, Loan Payments?

As one of India’s oldest and most reputable life insurance providers, the Life Insurance Corporation of India, also known as LIC, has a prominent position.

Since founding in 1956, LIC has constantly offered insurance solutions to a sizable consumer base nationwide. The company has grown its operations and diversified its product line to meet the changing insurance needs of a rising population.

The oldest insurance firm in India has modernized its payment system to make it more convenient for its policyholders.

Customers who are already LIC members now have easy access to online policy management tools and a quick way to pay their premiums. In cases where tips are high, a different approach is possible.

LIC Online Payment

LIC Online Payment (for LIC website users who have registered):

  • Step 1: Go to the main LIC India website, www.licindia.in, to sign up for LIC Pay online. ‘Pay premium online’ is the option you can find by scrolling down. 
LIC pay premium online
  • Step 2: A new page opens with the option to pay directly by choosing one out of 4 options.
LIC pay direct
  • Step 3: After clicking on it, you will be prompted to enter your registration details and the premium amount due.
  • Step 4: Once you have provided your information, you’ll see a list of your registered plans.
  • Step 5: Out of this webpage, choose the plans you would like to pay premiums and validate your selection by clicking the Submit option.

Offline Payment Mode for LIC:

There are several offline methods available for paying premiums for LIC plans:

  1. NACH (National Automated Clearing House) is a digital payment service India’s National Payments Corporation (NPCI) offers. To utilize this method, you must submit a NACH authorization form to the LIC branch where you purchased the insurance. The form should include your bank account number. LIC will verify the form with your bank, and if approved, the premium will be automatically deducted from your account.
  2. Bill Pay: You can use your bank’s Bill Pay service to make LIC online payments directly from your account. This service can be set up either online or offline. Registering allows your bank to deduct your LIC premiums when they are due.
  3. ATM: Some banks’ ATMs accept premium payments for LIC policies. Corporation Bank and Axis Bank have ATMs that allow premium payments. However, please note that ATMs do not accept monthly premiums or premiums paid under the Salary Savings Scheme. Only customers registered with Corporation Bank or Axis Bank can use their ATMs to pay insurance premiums.

LIC Pay Online Through An Agent/Merchant:

LIC has appointed specific individuals or agents authorized to collect premiums. Here are some essential details regarding premium collection by qualified individuals:

  • For health insurance premiums, it is required to pay them directly to the insurance company. However, you can pay the premiums directly to the authorized agent regarding ULIP (Unit Linked Insurance Plan) and life insurance products.
  • It is worth noting that there are no service charges or fees associated with this premium collection service.

LIC Payment Through Bank:

LIC has collaborated with two prominent banks in India, Axis Bank and Corporation Bank, to enhance convenience for its customers in making premium payments. In addition to online options, LIC policyholders can create premium payments at Axis Bank and Corporation Bank branches. 

Here are a few key considerations when utilizing these bank branches for premium payments:

Accepted

Not Accepted

Payment can only be done for LIC policies that are still active.

Payments will not be accepted for Salary Savings Scheme (SSS) policies.

Premium payment can only be done 30 days in advance for regular life insurance policies.

Premium payment for ULIP and Health policies are not accepted.

Term insurance policies & advance premium payment can only be done 15 days before the due date.

Premiums cannot be paid for the upcoming financial year.

The authorized bank can issue a valid signed receipt upon receiving payment

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Payments at authorized bank branches are accepted either in the form of cash/ cheque or demand draft

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Late premium payments attract a late fee at the rate of 8% of the premium

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LIC Online Payment Through Debit/Credit Card:

LIC now offers a convenient debit/credit card payment option for paying premiums. The transaction process utilizes the IDBI bank gateway and is straightforward. Here are the step-by-step instructions for using a debit or credit card to pay your insurance premiums:

  • Step 1: Log in to the LIC billing website, i.e., https://licindia.in/, select the ‘pay premium online’ option, and then on the next page, the ‘Pay Direct’ option comes up. Then click on ‘renewal premium/revival’.
lic pay direct renewal premium revival
  • Step 2: You must complete the following steps to pay.
steps to payment lic online
  • Step 3: You will be directed to a screen where you must enter your policy number, date of birth, email id, and mobile number. etc., and then click on submit.
  • Step 4: You will be directed to the premium particulars and then the payment.
  • Step 5: To finalize the transaction, provide your OTP (One-Time Password) or ATM pin.
  • Step 6: Click on ‘Pay.’ Upon successful payment, you will receive payment receipts via email.

Following these steps, you can quickly and securely pay your LIC premiums using a debit or credit card.

Benefits of LIC Online Payment with Debit/Credit Card:

Here are some key benefits and features of paying LIC premiums through a debit/credit card:

  • No additional registration is needed between you and the service provider.
  • Instantly obtain payment receipts for your records.
  • The login ID for both LIC and the bank remains confidential and known only to you.
  • Payment through debit/credit card is free, without any additional fees.

Paying LIC premiums through a debit/credit card offers convenience, security, and immediate payment confirmation, all at no extra cost.

LIC Online Payment through Paytm:

LIC premiums can now be conveniently paid using the popular mobile app Paytm. This eliminates the need to visit the LIC website or use net banking, providing consumers and policyholders with a more straightforward method to make their payments.

Paytm’s paid online platform allows for easy and hassle-free transactions, enhancing the overall payment experience for LIC customers.

  • Step 1: To access your Paytm account, you have two options: either use the Paytm app on your mobile device or visit their website. Log in to your Paytm account through the app or website using your credentials to proceed.
lic paytm
  • Step 2: From the top right of the screen, click on the dropdown menu and select the option ‘Recharge & Pay Bills.’
lic paytm recharge and pay bills
  • Step 3: From the dropdown menu, locate and click on the symbol representing ‘LIC/Insurance’ to proceed with your payment.
  • Step 4: Enter your LIC policy code and click the ‘Proceed’ button to pay your LIC premiums. You will then be presented with various payment options, such as using your Paytm wallet, credit or debit card, or Internet banking. Choose the desired payment method to complete the transaction.
lic policy number
  • Step 5: After completing the payment for your LIC insurance premium, you will receive a confirmation message from Paytm via notification, SMS, and email. These notifications prove your payment and reassure you that the transaction has been processed.

About Grace Period For LIC Pay Online:

LIC offers a grace period for specific plans, allowing policyholders to make premium payments after the regular due date without incurring any interest or penalties.

For plans with monthly premium payments, a 15-day grace period is provided. This means that policyholders have an additional 15 days after the due date to pay without facing any consequences.

For plans with premiums paid quarterly, half-yearly, or annually, the grace period extends to a monthly basis. Policyholders have one month from the due date to pay without incurring interest or penalties.

This grace period allows LIC policyholders to catch up on missed payments without facing immediate financial consequences.

LIC Calculator:

LIC offers an Online Premium Calculator, a valuable tool for individuals looking to purchase a new policy or renew an existing one.

This calculator allows users to generate instant premium quotes for their desired policies. The LIC Calculator, depicted in the image below, provides a user-friendly interface to assist individuals in determining their insurance premiums accurately and efficiently.

LIC calculator form

Tax Benefits Associated With LIC Policy:

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If the premium for the life insurance is paid out of your salary, you are eligible for a tax deduction.

Any taxable income that is placed into an Individual Retirement Account (IRA) for the purpose of obtaining a pension may be deducted from an individual’s tax bill.

Up to Rs.25,000 may be deducted from the assessee’s tax bill if he or she pays for health insurance.

Up to Rs.75,000 of an individual’s salary may be deducted from the amount of LIC deposits made for the care of a disabled relative. (1,25,000 in cases when the disabled dependant is severely impaired)

How To Verify The Status Of Lic Policy?

The Policy Status section provides valuable information about the status of your coverage, including whether your premiums have been fully paid or if the policy has expired.

It also offers additional policy details that can be helpful. To access this information, you can visit the location of your previous insurance provider or contact them directly. The Policy Status section is valuable for obtaining relevant information about your policy’s current state.

How To Reinstate A Lapsed Life Insurance Policy?

  • In the event of insurance expiration due to non-payment of premiums or failure to meet other requirements by the specified due date, the policy’s terms and conditions become null and void until the coverage is reinstated.
  • To reinstate the expired insurance, it is necessary to fulfil specific criteria, including paying the outstanding premiums and any accrued interest and meeting the health requirements specified by the insurance provider. Once these conditions are met, the coverage can be reactivated, allowing the policyholder to regain the benefits and protections offered by the policy.

LIC Policy Guideline:

  • When To Pay LIC Premiums:

LIC typically sends premium notices one month before the due date, and the months in which premiums are due are highlighted on the first page of the policy bond.

  • There are various methods available to pay LIC premiums:
  1. Cash, local cheque, or demand draft at the branch office (subject to cheque realization).
  2. Sending demand drafts, cheques, or money orders by post.
  3. Setting up standing instructions with your bank for premium remittance.
  4. Making premium payments through Internet banking.
  5. Using ATMs of Corporation Bank and UTI Bank for premium payment.
  6. Utilizing the Electronic Clearing Service (ECS) for premium payment.
  • You can visit the branch that serves your policies to check your LIC policy status. The policy status will indicate whether your policy is active, lapsed due to non-payment, or expired. It also provides other important information related to your policy for your reference.
  • If your policy lapses due to non-payment or other criteria, it becomes void until you revive it. To restore a lapsed policy, you need to pay the accumulated premium along with interest and fulfil any health requirements as necessary.
  • LIC policies, particularly endowment plans, can be used as collateral to avail loans. You can repay the loan with interest or continue paying the interest and deduct the loan amount from the claim payments when due.

Frequently Asked Questions:

1. Is it safe to make online payments for LIC policies?

Yes, LIC’s online payment system ensures the security of your transactions. They have implemented robust security measures, including encryption technology, to protect your personal and financial information. This provides a secure environment for making online payments for LIC policies.

2. Can I use a digital wallet to make payments for LIC policies?

Absolutely! LIC’s online payment system supports popular digital wallets such as Paytm, PhonePe, and Google Pay. You can link your digital wallet to your LIC account to make quick and convenient payments for your LIC policies.

3. Can I set up auto-pay for my LIC policy premiums?

LIC offers the convenience of setting up auto-pay for your policy premiums. You can authorize LIC to automatically deduct the premium amount from your registered bank account or credit/debit card on the due date. This ensures that your premiums are paid on time without any manual intervention.

4. How can I check the status of my online payment?

You can easily check the payment status after making an online payment for your LIC policy. Log in to your LIC account on the website or app, navigate to the payment history section, and you will find the details of your recent payments. The status of each payment, such as successful, pending, or failed, will be displayed, providing you with the necessary information about your online payments.

Conclusion:

In conclusion, LIC’s online payment system has significantly transformed how policyholders interact with the company. It offers a range of benefits, including convenience, speed, and security.

The introduction of online payment options has made it effortless for customers to pay their premiums and access policy information from the comfort of their homes or while moving. The user-friendly interface ensures a seamless and hassle-free experience for policyholders.

Moreover, LIC has implemented robust security measures to protect customer information, building trust and confidence in its online payment platform.

The availability of multiple payment methods, such as credit/debit cards, net banking, and digital wallets, caters to the diverse preferences of policyholders. Overall, LIC’s online payment system has greatly improved customer satisfaction and revolutionized the landscape of insurance payments.

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