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LIC Premium Calculator
LIC Premium calculator is a free tool to calculate premium and expected return of various LIC policies. Calculator has option to calculate premium and benefits with various applicable riders like Accidental Death and Disability Denefit (AD & DB) Rider, Accidental Death Benefit (ADB) Rider, Term Assurance Rider, Premium Waiver Benefit (PWB) Rider etc. Calculator shows yearly, half yearly, quarterly and monthly or single premium along with applicable Goods and Services Tax (GST) as per prevailing rate. The calculator is not official calculator of the LIC of India. In case of any error or clarification, please write to us in comment box. Various keywords and terms have been explained after the calculator for better understanding.
Related Link: List of Premium Calculators
About LIC Premium Calculator
Basic Sum Assured
Basic Sum Assured (BSA) in Endowment plans, is minimum guaranteed amount which will be available to the policyholder along accrued Simple Revisionary Bonus + Final Addition (if any) as Maturity amount on completion of policy term. Basic Sum Assured is one of the key parameters (other two are Age and Policy term).
Age
For Calculation of premium, age at the time of submission of proposal (application) form is required. Age is considered in whole numbers and to arrive at the whole number, there are two methods which are used:
Nearest Birthday Method: In this method, last completed birthday and upcoming birthday are evaluated and age at the birthday which is nearer is considered for premium calculation. It simply means, if a person is 26 years and 4 months old, he will be considered as 26 year old, whereas if, he is 26 year and 7 months old, he will be considered as 27 year old. This method is used in Endowment plans of LIC of India.
Last Birthday Method: It is fairly simple method, age at the time of last birthday is considered for premium calculation. Two examples given in previous method will be considered as 26 years only. This method is mostly used in case of pension or annuity plans.
Try: LIC Age Calculator
Policy Term
Policy Term is duration in years for which policy will be in-force and benefits like death claim (risk cover) and survival benefits (if any) are paid during policy term and maturity is paid on completion of policy term. In regular premium policies, policy term is same as premium paying term.
Premium Paying Term (PPT)
Premium Paying Term (PPT) is number years for which premium will be required to be paid. Policies in which Premium Paying Term and Policy Term are same are known as regular premium plans (Jeevan Anand and New Endowment plan). The second kind of policies are known as Limited Premium Plan policies, in which Premium Paying Term (PPT) is less than Policy Term (Jeevan Lakshya and Jeevan Labh).
How premium in LIC policies is calculated?
There are various types of plans like endowment plan, money-back plan, whole life plan, single premium plan, term plan etc. Each plan comes with tabular premium which indicates premium rate for Age and Term combinations. A sample tabular premium for Jeevan Anand is given in the following table.
| Tabular Premium for per 1000 of Sum Assured | ||
|---|---|---|
| Age | Term | |
| 15 | 20 | |
| 20 | 79.05 | 57.25 |
| 25 | 80.55 | 58.45 |
| 30 | 82.45 | 60.05 |
So, as per above table, tabular premium for a 25 year old policyholder, who is opting policy term of 20 years will be Rs. 58.45 per 1000 of sum assured. For 500000 sum assured the premium will be 100000*58.45/1000=Rs. 5845. LIC also provides premium payment mode rebate and higher sum assured rebate which are deducted before arriving final premium.
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