What Are the Late Payment Charges for LIC Premium?
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LIC is one of the most trusted companies offering some best insurance policies to cater to people of all economic status. In this post, we are discussing the late payment charges levied on LIC premiums. Read on!
LIC has been a trusted brand offering numerous insurance products and services, which cover people adequately irrespective of their economic background. Having an insurance plan from LIC is definitely recommended for all. However, it is also important to know the various requisites of the policies including the late LIC payment charges. Let us understand its importance in detail.
Why is it important to pay LIC premiums on time?
Paying an insurance premium on time is important because it guarantees the policyholder to continue receiving the financial coverage that the policy offers. If you fail to pay the premiums on time, your policy lapses and if that happens you cease to enjoy the benefits offered under your plan. Similar to buying an LIC premium, it is equally important to stay updated with the prerequisites of the policy including its various conditions. You must know that to keep your policy active and to stay away from paying late fee or penalty, you must make the LIC policy payment timely.
Also Read: Step by Step Process to Check LIC Policy Status Without Registration
What are the late payment charges of LIC premiums?
Late LIC payment charges levied on a policy premium is calculated as per the time lapse between the expiry date and the subsequent months delayed in making the payments.
Below table will enhance your understanding further:
|Charges of Late Fee (Re 1/premium)||1st Month||2nd Month||3rd Month||4th Month||5th Month||6th Month|
Read More: Downloading LIC Premium Payment Receipt Online in Simple Steps
Terms and Conditions of LIC premium payment
Below are some conditions that are required to be noted regarding LIC premium payment:
- LIC of India sends reminder notices to policyholders for premium payment one month before the date.
- They also mention premium due dates and months on the policy document to help the policyholder in keeping track of the dates
- However, irrespective of the date of receiving the LIC notice, the premium has to be paid on time
- Also, despite reminders, if the policyholder fails to pay the premium on time, LIC allows a 15 days grace period (in case of monthly premiums) to make the payment without any fine
- In case of quarterly, semi-annual, or annual premium payment, the grace period is extended to 30 days
How to Revive a Lapsed Policy?
In case your LIC premium payment due date expires or you fail to make the timely payment even during the grace period and the policy lapses, you still have options of reviving the policy. There are various schemes as explained below that can be followed to revive a lapsed policy.
- Revival Scheme
- Special Revival Scheme
- Loan Cum Survival Scheme
- Survival Benefit Cum Revival Scheme
Let’s understand them in detail one by one.
# Ordinary Revival Scheme – Under this scheme, the policyholder is required to pay the arrears of all the unpaid premiums of his/her LIC policy in one single payment with interest. There are various terms and conditions that need to be considered while reviving your LIC policy via this scheme. You are also required to offer a good health declaration form along with a medical certificate if required
# Special Revival Scheme – This scheme allows the Date of Commencement (DOC) of the policy to move in a way that the policy doesn’t lapse. So, you can make the payment within the revival period in one single premium. Other documents like medical certificates might also be required like in the above case. Further, you must note that:
- the revival should be done within 3 years of policy lapse
- this scheme is allowed only once during the term of a policy
- the policy shouldn’t have surrender value
# Survival Benefit Cum Revival Scheme – This scheme is used mainly to revive the money back policies. Here, the policyholder can use the survival benefit gained from the policy to revive it. However, this is possible if the date of receiving survival benefit is before the revival date. If the survival benefit amount is less as compared to premium due, the policyholder is expected to make the additional payment from his/her pocket. And if the survival benefit amount is more than the due payment, the extra amount is paid back to the policyholder.
# Loan Cum Survival Scheme – Under this scheme, if the customers of LIC policy have acquired a surrender value on the policy, he/she can take a loan against it to revive the lapsed policy. Thus, you can pay the premium arrears as a loan from the accumulated amount available.
Also Read: Best LIC Policy for Girl Child
How to pay your LIC premium to revive it?
There are two ways to make your LIC policy premium payment. They are online and offline.
1. Online payment methods include:
- Official LIC portal – Payment can be done by visiting the official LIC portal and using online banking facilities like debit or credit card, UPI, wallets etc.
- Authorized Banks – There are many authorized banks that accept LIC premium payments. Some of these banks are namely; Axis Bank, Union bank, IDBI bank etc.
- Merchant Mode – Merchant modes can also be used to make premium payments. Some of them include authorized agents known as Empowered Point, Retired LIC Employee collection points, LIC associates etc.
- Franchisees – Franchisees are also available to make payments such as Paytm, AP Online, InstaPay etc.
2. Offline payment methods include:
- NACH – NACH or National Automated Clearing House is a payment option that can be utilized by LIC policyholders to make payments. Under this payment mode, your bank deducts LIC premium at a pre-decided date, which is then remitted to LIC
- Bill Pay – Bill Pay or EBPP (Electronic Bill Presentment and Payment) is a process under which an LIC statement is sent to the policyholder electronically. The customer then pays the premium via several electronic mode of payments at his/her dispersal
- ATM – ATMs of Axis Bank and Corporation banks can also be used by LIC customers to make payments of premiums
To Sum Up
As discussed above, your LIC policy can lapse if you do not make the payment on time and lead to the discontinuation of many benefits. Thus, it is important to pay the LIC premiums on time to continue availing the various benefits offered under your plan.
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Related Posts: How to Surrender LIC Policy Online Before Maturity | Top 5-Year Duration LIC Plans | Top LIC Insurance Policies For Girl Child
FAQs on Late Payment Charges for LIC Premium
How can I pay the LIC premium after the due date?
To pay LIC premium after due date, you can:
1. Visit the official website of LIC
2. Go to Online Premium Payment option on the home page
3. Click on the tab of Pay Direct
4. You can select the LIC Renewal of premium or revival of policy option as per need
5. Now choose the Proceed button and make the payment
It is done
How to pay the LIC premium if you miss the last date?
If your LIC of India payment due date expires and you miss out on paying the premium, you can use the grace period to make the payment. Here’s the process to make the payment online:
# Visit the official website of LIC
# Click on Online Premium Payment option on the home page
# Go to Pay Direct tab
# Now opt for the Premium Renewal or revival of policy option as per need
# Choose the Proceed button and make the payment
What will happen if we pay the LIC premium after the grace period?
If you miss the grace period to pay your LIC premium payment, your policy will lapse. In that case, to revive a lapsed policy, you might have to pay a penalty in the form of extra fees as well as might have to go through the renewal process of the policy once again.
Can I pay the insurance premium late?
Yes, you can pay your insurance premium during the grace period if you miss the last date of payment. However, It might lapse if you miss the payment during the grace period.