Let’s discuss various modes of online payment and the process involved in detail.

LIC Website

• For paying the premium using the LIC website, visit https://www.licindia.in/ and select ‘Pay Premium Online’ option from the panel at the left.
• Further you will get the options to either ‘pay directly without login’ or pay ‘Through Customer Portal’.

Direct Payment (Without Login)

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:

1. Renewal premium/ Revival payment
2. Advance Premium Payment
3. Loan Repayment
4. Loan Interest Payment

For making the LIC premium payment via LIC website, follow the steps mentioned below:

• Select ‘Renewal Premium/ Revival’ option from the drop-down menu.
• A new screen appears explaining the payment process for premium. Once you are through the process, click on the ‘Proceed’ option.
• Fill the mandatory details required for customer validation such as Policy Number, Date of Birth, Mobile number, email id, etc. It is imperative that you fill these details before the session expires. Once the session expires, you will have to re-fill the form. Fill the captcha code towards the end of the form and then click on ‘I Agree’ checkbox and submit the form.
• On the next step, verify the premium details provided by you on the previous step. Also, check for the premium amount provided by the LIC server and click on proceed.
• This step will show the total number of policies selected and the total amount which needs to be paid thereof. After ensuring the amount and policy, click on ‘Check & Pay’.
• The payment portal will offer several options through which the payment can be processed:
  1. Bill Desk: Internet banking/ Debit Card/ Credit Cards/ eWallets
  2. Standard Chartered BHIM/ UPI
  3. AXIS Bank BHIM / UPI

Select the preferred option and make the payment of the required amount.

Through Customer Portal

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.

• Login to your account by using your access credentials.
• After logging in, click on the ‘Online Payments’ option. This action of yours will redirect you to the ‘premium payment’ portal.
• From the list of policies, select the policy that you want to pay for and then click on ‘Check & Pay’.
• Before transferring you to the payment gateway, you will be asked to confirm details like mobile number, email address, and the premium amount. Once you have confirmed all the details, you once again need to click on ‘Check & Pay’.
• The final step is to choose the payment gateway for making the payment.

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.

Things to remember while making the payment

• The receipt of payment can be printed online using the portal and will also be mailed to the registered email address. So customers are requested to fill the correct details regarding the mobile number and email address.
• If the amount of the premium is deducted twice for the same due, such additional amount is refunded to the service provider, and at a later stage, such service provider will transfer the amount to the customer’s bank.
• If the customer’s account is debited from the premium amount but the error is displayed on the page may be due to timed out or network issue. A receipt will be sent to your registered email address in three days after receiving the confirmation of payment from the bank. The receipt can also be downloaded from the portal.
• Before trying for the second first check the debit entry in the bank account and if there is a debit for the amount of premium, the customers are requested not to make the second attempt for payment.

LIC India Mobile App

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.

• LIC Customer App Through this app, customers have access to two options to pay for their LIC premium. You can pay either by opting for ‘Paydiect’ method or you can pay by registering yourself. On how to pay for the premium, you can refer to the payment process mentioned under ‘LIC Website’ as the process is the same. This mobile app can be used for other purposes also like locating your LIC office, calculator for computing the premium and many other services.
• My LIC App This is an umbrella app which acts as a one-stop destination for all LIC apps. This app gives you access to two other apps. To pay for LIC premium, you need to install all the apps. The image below gives you an idea about the apps linked to ‘My LIC’ app.
• PayDirect With this app, a user can make the payment of LIC premium directly without registering or creating a user account. This app also allows you to download the statement of all your past transactions.

Pay via Electronic Clearing Service (ECS)

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.

Other modes of payment

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.

Benefits of Income Tax on LIC Policy

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:

• An individual himself;
• Spouse;
• Any child of an individual

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:

1. A policy issued on or before 31st March 2012 premium paid should not be more than 20% of the capital sum assured of insurance,
2. Policy which is issued on or after 1st April 2012 premium paid during the period should not exceed 10% of the capital sum assured,
3. A policy which is issued on or after 1st April 2013 for the insurance on the life of a person who is:
   1. A person with a disability or a person with severe disability as referred to in section 80U, or
   2. Suffering from disease or ailment as prescribed under section 80DDB.

Moreover, the premium paid during the period should not exceed 15% of the capital sum assured.