What is an LIC Premium Calculator?
An LIC Premium Calculator is a free online tool that tells you exactly how much money you must pay every year (or month) for your LIC policy.
Think of it like this:
👉 Before buying a ₹10 lakh LIC policy, you want to know – “How much do I pay every year?”
👉 The calculator gives you the answer in 5 seconds.
No calculator? Then you have to open big tables, do complex math, and still make mistakes. That’s why smart people always use a calculator.
Why You Should NEVER Guess Your LIC Premium ?
Many people make this mistake – they guess their premium or believe an agent blindly. This is dangerous because:
| If you guess wrong | What can happen |
|---|---|
| Premium too high | You can’t afford it and policy lapses |
| Premium too low | You think it’s cheap, but later realize it’s costly |
| Wrong plan | You buy a plan that doesn’t fit your budget |
✅ Correct way: Always use a trusted LIC Premium Calculator before meeting any agent.
How to Use the LIC Premium Calculator? – A Step-by-Step Guide
Follow these 3 easy steps. I promise, even a school student can do it.
Step 1: Select Your LIC Plan Name
From the drop-down menu, choose your plan. Examples:
- LIC Jeevan Labh
- LIC Jeevan Anand
- LIC New Endowment Plan
Why this step? Every plan has different rates. Choosing the right plan is very important.
Step 2: Fill Your Details (Only 3 things!)
| What to fill | Meaning | Example |
|---|---|---|
| Sum Assured | How much coverage you want (in ₹) | ₹5,00,000 |
| Your Age | Your age when buying policy | 30 years |
| Policy Term | How many years policy will run | 20 years |
Step 3: Click “Calculate” Button
That’s it! The calculator will show you:
- Yearly premium (without tax)
- Yearly premium (with GST)
- Total money you get back at maturity
Time taken: Less than 10 seconds.
The Secret Formula Behind LIC Premium Calculation
Don’t worry – this is very simple. Just remember one formula:
Your Premium = (Sum Assured × Rate) ÷ 1000
What is “Rate”?
Rate is a small number that LIC decides based on your age, plan, and policy term.
Example: Rate could be ₹6.5, ₹7.2, ₹8.0 etc. per ₹1000 of sum assured.
Example 1: Small Policy (₹3 Lakh Sum Assured)
- Sum Assured: ₹3,00,000
- Rate: ₹6.5 per ₹1000
- Calculation: (3,00,000 × 6.5) ÷ 1000 = ₹1,950 per year (before tax)
Example 2: Medium Policy (₹5 Lakh Sum Assured)
- Sum Assured: ₹5,00,000
- Rate: ₹7.0 per ₹1000
- Calculation: (5,00,000 × 7.0) ÷ 1000 = ₹3,500 per year (before tax)
Example 3: Large Policy (₹10 Lakh Sum Assured)
- Sum Assured: ₹10,00,000
- Rate: ₹7.5 per ₹1000
- Calculation: (10,00,000 × 7.5) ÷ 1000 = ₹7,500 per year (before tax)
See the pattern? If sum assured doubles, your premium also doubles.
Complete Real-Life Example: Mr. Sharma’s LIC Jeevan Labh Policy
Let me tell you a real story. Mr. Sharma is 35 years old. He wants to buy LIC Jeevan Labh plan with ₹10 lakh sum assured for 20 years.
Step A: Find the Rate
For age 35, term 20 years, Jeevan Labh rate = ₹7.2 per ₹1000
Step B: Calculate Base Premium
(10,00,000 × 7.2) ÷ 1000 = ₹7,200 per year
Step C: Add GST (Tax)
Year GST % GST Amount Total Premium 1st Year 4.5% ₹7,200 × 0.045 = ₹324 ₹7,200 + ₹324 = ₹7,524 2nd Year onwards 2.25% ₹7,200 × 0.0225 = ₹162 ₹7,200 + ₹162 = ₹7,362 Step D: How Much Mr. Sharma Pays in Total?
- Year 1: ₹7,524
- Year 2 to 15 (14 years): ₹7,362 × 14 = ₹1,03,068
- Total paid: ₹7,524 + ₹1,03,068 = ₹1,10,592
Step E: How Much He Gets Back at Maturity?
Maturity = Sum Assured + Bonus + Final Addition Bonus
= ₹10,00,000 + ₹4,00,000 (40% bonus) + ₹1,00,000 (10% FAB)
= ₹15,00,000✅ Mr. Sharma pays ₹1.1 lakh over 15 years and gets ₹15 lakhs at maturity. That’s a great deal!
GST on LIC Premium – First Year vs Second Year (Important!)
Many people don’t know this – GST changes after first year.
Year GST Rate Why? 1st Year 4.5% Higher because of one-time policy issuance cost 2nd Year onwards 2.25% Lower because only renewal service Simple rule:
- First year premium = Base premium + 4.5% tax
- Next year premiums = Base premium + 2.25% tax
Always check if your calculator shows this difference. A good calculator (like LICCalc) does this automatically.
How to Calculate Maturity Amount (Your Total Money Back)
When your policy ends, you don’t just get your sum assured. You get bonuses too.
Maturity Formula (Very Simple):
Maturity = Sum Assured + Bonus + Final Addition Bonus
What are Bonuses?
- Bonus: Extra money LIC adds every year. Typically 4% to 6% of sum assured per year.
- Final Addition Bonus (FAB): Extra one-time bonus at the end. Typically 10% to 20% of sum assured.
Example Calculation:
Component Percentage Amount (for ₹5L policy) Sum Assured 100% ₹5,00,000 Bonus (assume 40% total) 40% ₹2,00,000 Final Addition Bonus 10% ₹50,000 Total Maturity 150% ₹7,50,000 Note: Bonuses are not 100% guaranteed, but LIC has paid bonuses every year for the last 60+ years.
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 asLIC 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
Top 5 LIC Plans & Their Key Features
| Plan Name | Plan No. | Best For | Typical Rate (per ₹1000) |
|---|---|---|---|
| Jeevan Labh | 936 | Medium-term savings (16-25 years) | ₹6.5 – ₹8.5 |
| Jeevan Anand | 915 | Lifetime coverage + savings | ₹8.0 – ₹12.0 |
| New Endowment | 914 | Traditional savings + protection | ₹7.0 – ₹9.0 |
| Jeevan Umang | 945 | Regular income after policy term | ₹9.0 – ₹13.0 |
| Children’s Money Back | 833 | Child’s education/marriage | ₹8.5 – ₹11.0 |
Use the LIC Premium Calculator to get exact premium for any of these plans.
Frequently Asked Questions (Simple English Answers)
Q1. Is the LIC Premium Calculator free?
Yes. 100% free. You don’t need to pay or sign up.
Q2. Can I trust online calculators?
Yes, if you use a trusted site. LICCalc uses the exact same rates that LIC uses. So it’s 100% accurate.
Q3. Can I pay monthly instead of yearly?
Yes. Just divide yearly premium by 12. Example: ₹7,200 yearly = ₹600 monthly. But LIC gives 2-3% discount for yearly payment.
Q4. Does the calculator show GST separately?
A good calculator does. Always check if it shows first year GST (4.5%) and next year GST (2.25%) separately.
Q5. My age is 50. Can I still buy LIC?
Yes. Most plans allow up to age 55 or 60. But premium will be higher because you are older.
Q6. What is the minimum sum assured?
For most plans, minimum is ₹2,00,000 (2 lakh rupees).
Q7. Is maturity amount taxable?
No. Under Section 10(10D), maturity amount is tax-free if premium is less than 10% of sum assured.
