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In today’s competitive environment, every producer or supplier is trying to differentiate its offering from the competitor. For this, customer satisfaction is considered as the most critical factor as it is the customer’s perception that differentiates the various products from one another. Earlier the payment of premium was a cumbersome process and it involved visiting the LIC branch office, standing in the queue for a long time. But with the extended internet coverage, the process of payment for premium has been digitized and now it has become much faster than it used to be. Now, the user can complete the process of payment in a few clicks only.
The user can pay their premium either by using the LIC website or the LIC India’s App by mobile.
Let’s discuss various modes of online payment and the process involved in detail.
This option is suitable for users who are not interested in registering themselves with LIC online portal. For them, it is just a quick payment portal. This option enables the user to make payment for:
For making the LIC premium payment via LIC website, follow the steps mentioned below:
Select the preferred option and make the payment of the required amount.
Registered users can make payment via this mode by simply logging in their account. If you are not a registered user, you need to register yourself on the portal to avail this facility.
New users can register themselves by filling the form provided. You will need to fill all the details mentioned in the form for the registration process.
After successful registration, you are eligible to make payments for your premium via the customer portal. Now follow the steps mentioned below to take the process forward.
LIC premiums can be paid through Net Banking accounts with the banks specified by the LIC: For Authorized Banks Click Here.
Other modes of payment of LIC premiums are Debit-Cards (VISA/MASTER/RUPAY), Credit cards (AMEX/VISA/MASTER/RUPAY), Payment banks, Wallets, and UPI.
if the user wants to pay through Debit-card Wallet, Net-banking, and UPI, there are no charges for such payment.
If the user wants to pay through Credit Cards, such payment is subject to “Convenience Fee.” After selecting the Pay through Credit Card option, the specific “Convenience Charges” are displayed for the credit card payment. The amount of the fee displayed is paid to the card network company and not collected by LIC.
If you are a LIC policyholder, then you are in for an added benefit. LIC policyholders have an option of paying their premium using the LIC India mobile application. To suit the convenience of the customers, LIC has developed three different apps namely LIC Customer, My LIC, and LIC PayDirect which are available for all users.
You can also opt for ECS method to pay for your LIC premium. All you need is your bank accounts. Payments for your LIC premium will automatically be deducted from your registered bank account. You need to set a particular date on which you would like the payment for LIC to be deducted.
To activate this facility, you need to visit your bank branch along with your bank account’s canceled cheque through which you would like to pay for your premium. You will also have to inform the bank about the details of your LIC policy to activate this facility.
Besides all the above mentioned online modes for paying the LIC premium, the user can also use third-party apps/eWallets like Paytm and others. You also have the option to pay for other insurance providers apart from LIC using these external payment options.
With all these options available to pay online, it’s a big relief to the user who wants to make the payment for LIC premium. Now users don’t have to stand in the queue to wait for their turn and take a day off from their busy schedule. With the help of any of the modes mentioned above, they can make the payment with the help of a few clicks and in very less time either from home or office.
Tax exemption under section 80C on life insurance policies from LIC:
Any sum paid by an individual to effect or to keep in force an insurance on the life of:
Tax exemption under section 80CCC on life insurance policies from LIC:
A deduction is allowed to an individual for any amount paid or deposited by him from his taxable income in the specified annuity plans for receiving a pension.
NOTE: The total amount of deduction under u/s 80C, 80CCC & 80CCD (1) shall not exceed one lakh fifty thousand Rupees, i.e., the total deduction available under these sections is limited to ₹150000/-.
Tax exemptions under section 80D on LIC policies
Deduction under section 80DD in respect of expenditure on training/medical treatment of a dependent, being a person with a disability
A deduction up to ₹75000/- is allowable on the amount deposited from total income
However, in case, the dependent is handicapped and suffering from a severe disability then the deduction is allowed up to ₹1,25,000/-
Tax deduction under section 10(10D) on LIC policies
The sum received under the LIC, such as interest, the sum insured along with the bonus on such policy is exempted from tax where such sum is received as a death benefit. However, in case the sum is received for other than a death benefit, it has to satisfy certain situation:
Moreover, the premium paid during the period should not exceed 15% of the capital sum assured.
