How to Use the LIC Premium Calculator? – A Step-by-Step Guide
The LIC Premium Calculator is a simple online tool which are helps you to find out the premium you need to pay for your desired LIC policy. this LIC Calculator are save you from manually complex calculation and there tables, here you can get accurate estimates LIC premium with in seconds. Here we see how to use it:
Choose a LIC Premium Calculator
First of all you have to visit the LIC official website or LIC Premium Calculator tool online , this calculator are already supports the your interested plan , such as LIC Jeevan Labh, LIC Jeevan Anand, or LIC New Endowment Plan or any other .
Select Your Policy Plan
Here, From the drop-down menu, choose the specific plan name and plan number that you are interested to calculate . because each LIC plan has different benefits and premium structures. therefor be care full at time of selection of LIC policy .
Enter Your Details
After the selection of LIC policy , you have to fill the required important data like .
- Basic sum Assured(BSA) :- fill The coverage amount you want.(BSA) is the guaranteed minimum amount that LIC will pay to policyholder’s nominee in case of the policyholder death during the policy term, or to the policyholder at maturity (depending on the plan type). This amount is excluding bonuses or additional benefits.
- Age :– Under this section you have to fill the Age of Policyholder at the time of purchase.
- Policy terms (Year) :- Here place the data of policy term in year , for which they take policy. means How long the policy will run (e.g., 16, 20, 25 years).
Click ‘Calculate’
Now you have to click on the Calculate Premium button . then you get the instantly result in form of :-
- Basic Sum Assured
- Age at Entry
- Policy Term
- Maturity Age
- Death Sum Assured
LIC Premium Calculation Formula
Here we see the detail LIC Premium Calculation Formula with the example .
📘 How the Calculation Works
1. Annual Base Premium
Formula: Base Premium = (Sum Assured × Premium Rate per ₹1000) ÷ 1000
Premium Rate varies by age, term, and plan.
Example:
Sum Assured = ₹5,00,000, Age = 30 years, Term = 20 years, Rate = ₹6.5/1000
Base Premium = (₹5,00,000 × 6.5) ÷ 1000 = ₹3,250
2. GST Calculation
- First Year GST = Base Premium × 4.5% = ₹3,250 × 0.045 = ₹146.25
- Second Year GST = Base Premium × 2.25% = ₹3,250 × 0.0225 = ₹73.13
3. Total Premium (with GST)
- First Year Total = ₹3,250 + ₹146.25 = ₹3,396.25
- Second Year Onwards = ₹3,250 + ₹73.13 = ₹3,323.13
4. Maturity Calculation
Formula: Maturity = Sum Assured + Bonus + Final Addition Bonus
Bonus = 40% of SA, FAB = 10% of SA (assumptions)
Example: ₹5,00,000 + ₹2,00,000 + ₹50,000 = ₹7,50,000
🧾 Real-Life Example
Scenario: Mr. Rajesh, aged 35, chooses the LIC Jeevan Labh (936) plan with:
- Basic Sum Assured: ₹10,00,000
- Policy Term: 20 years
- Premium Payment Term: 15 years
- Premium Rate: ₹7.2 per ₹1000 (as per LIC’s rate chart)
Step 1 — Calculate Base Premium:
Base Premium = (₹10,00,000 × 7.2) ÷ 1000 = ₹7,200/year
Step 2 — Add GST:
- First Year GST = ₹7,200 × 4.5% = ₹324
- Second Year GST = ₹7,200 × 2.25% = ₹162
Step 3 — Total Premium Payable:
- First Year = ₹7,200 + ₹324 = ₹7,524
- From 2nd Year Onwards = ₹7,200 + ₹162 = ₹7,362
Step 4 — Maturity Calculation (Assumptions):
Maturity = ₹10,00,000 (SA) + ₹4,00,000 (Bonus @ 40%) + ₹1,00,000 (FAB @ 10%) = ₹15,00,000
✅ Result: Mr. Rajesh will pay ₹7,524 in the first year and ₹7,362 from the second year onwards, and will receive an estimated ₹15,00,000 at maturity (tax-free under Section 10(10D)*).
