Home General Insurance What Are the Late Fees for LIC Premium Payments?

What Are the Late Fees for LIC Premium Payments?

life insurance

Offerings from LIC of India include goods and services that guarantee adequate financial protection regardless of

how prosperous we are financially. While it is strongly advised to purchase an insurance policy from LIC, we also need to be aware of the numerous terms and conditions that apply to the plans.

The prompt payment of our premiums is a significant component of it. Why do we claim that? The financial protection you have enrolled in stays in effect as long as premium payments are made on time.

We all understand the value of getting insurance, but in order to keep our policy actions and avoid late payment costs and penalties, we must make sure to pay our premiums on time.

The number of months you have postponed determines how much of a late fee will be applied to your premium.

In order to calculate results, a month is assumed to be 45 days long. You can better comprehend the fees you will have to pay by looking at the following table:

Late Fee    Month 1    Month 2    Month 3    Month 4   Month 5   Month 6
  6%      0.005          0.01           0.015          0.02          0.025       0.03
 7.50%      0.00625     0.0125     0.01875        0.025         0.03125    0.0375
  9.50%     0.00792     0.01583   0.02375       0.03167     0.03958    0.0475

Additional Terms and Conditions for Paying LIC Premiums

The LIC typically notifies customers of premium due dates one month in advance. The months in which the premiums are payable are expressly stated when you obtain your insurance bond or document. You’ll find it simpler to recall when the payments are due as a result. Postal delays frequently result in delayed receipt of the premium notice. However, even if the notice is received late, it is still crucial to pay the premium on time.

For plans with a monthly premium payment method, a grace period of 15 days is permitted for some reasons; for policies with quarterly, half-yearly, and yearly premium payment modes, a grace period of 30 days is permitted.

Read More: What is Taxi Insurence and How to Claim Taxi Insurence?

During COVID-19, relaxations are permitted

Unimaginable damage has been caused to the populace by the COVID-19 pandemic. Many others have lost their closest friends, their occupations, and their sole source of support. Many individuals have entered

They have had trouble paying their premiums on time as a result of the economy’s slump. These reasons prompted LIC to reduce its restrictions in order to help these folks.

All policyholders whose premiums were due in March and April received month-long extensions from LIC at the start of the year. People might easily make payments using digital methods at the same time without paying an additional service fee.

In addition, LIC announced its Special Revival Campaign on August 10th. Each policyholder would be eligible for a maximum discount of up to Rs. 2,500 in late fees under this program. Due to the ongoing COVID-19 pandemic, this effort was established in order to assist policyholders in improving their financial situation. The provision would last through October 9th. For policies with premiums between Rs. 1 lakh and Rs. 3 lakh, the discount will be 25%; for those with premiums under Rs. 1 lakh, it will be 20%.

How Can a Lapsed Policy Be Resurrected?

If you didn’t pay your premium on time and your policy expired, LIC offers the following methods to help you reinstate it. This page elaborates on these plans in considerable detail.

Below is an explanation of the same.

1 Unique Revival Plan

A single premium must be paid at the time of revival under this plan, and the policyholder’s intimation date can be adjusted.

2 Revival Plan

If you are unable to pay the premium in a single mode, this program is an option, subject to a few terms and conditions.

3 Survival Benefit combined Revival Program

You can continue to pay for the money-back insurance by using the revival plan for the survival benefit cum.

How to Make Timely LIC Premium Payments

You can use both offline and online payment options to pay the premium for your LIC insurance. This page goes into great detail about these choices.

Read More: Origins of the First Test Cricket Match Ever Played

Offline Method 

NACH: With this method of payment, the bank withholds the premium at a certain time and sends it to LIC.

BILL PAY: Using this method, also known as EBPP, the consumer receives the statement electronically and can then make a payment using any of the available electronic systems.

ATM: Through this mechanism, LIC customers can make payments through the ATMs of Corporation Bank and Axis Bank.

Online Method

Authorized Banks: Use your debit card, credit card, UPI, or any other wallet you may be using to make payments at authorized banks.

LIC Website: Banks, including Axis Banks, City Union Bank, and IDBI Bank are permitted to accept premium payments on behalf of LIC.

Franchisees: Franchisees like AP Online, MP Online, Suvidhaa Info serves, CSC, Paytm, and InstaPay offer additional payment options.

Merchant: Premium payments can also be done using merchant methods, including Premium Point (Empowered Agents), Life-Plus (SBA), Retired LIC Employee Collection Points, LIC Associates, and Chief Organizers.

Previous articleWhat is Home-Based Business Insurance: Definition, Price, and Providers
Next articleThe Top 10 Pension Plans: What Are They?