LIC Premium Mode Comparison Calculator
Evaluate payment modes (Yearly, Half-Yearly, Quarterly, and Monthly) to minimize administrative loadings and maximize rebates.
| Frequency | Rebate Level | Year 1 Installment (4.5% GST) | Renewal Installment (2.25% GST) | Lifetime Total |
|---|---|---|---|---|
| Yearly Once a year | 2% Rebate on Base | ₹30,723 | ₹30,062 | ₹6,01,892 |
| Half-Yearly Twice a year | 1% Rebate on Base | ₹15,518 | ₹15,184 | ₹6,08,033 |
| Quarterly 4 times a year | No Rebate | ₹7,837 | ₹7,669 | ₹6,14,175 |
| Monthly 12 times a year | No Rebate | ₹2,613 | ₹2,556 | ₹6,14,175 |
₹12,284
Savings over Monthly paying mode.
• Yearly mode offers a 2% rebate and Half-Yearly offers a 1% rebate on the tabular premium.
• Selecting a yearly mode decreases lifetime GST and administrative loading significantly.
Premium Rebates
LIC offers financial rebates on tabular premiums to encourage annual and semi-annual payments:
- Yearly Mode: 2% rebate on tabular premium.
- Half-Yearly Mode: 1% rebate on tabular premium.
- Quarterly/Monthly: No rebate on base premiums.
GST Loading on Insurance
Life insurance premiums are subject to GST in India: 4.50% in the first year and 2.25% in all renewal years. Monthly modes incur higher transaction fees.
Frequently Asked Questions (FAQ)
Why is yearly payment mode more cost-efficient than monthly?
Annual payment saves administrative collection costs. In addition to the 2% discount, you pay lower cumulative GST and transaction surcharges.
Does changing the payment mode mid-term require policy changes?
Yes. You can switch your premium payment frequency at the policy anniversary date by submitting a request form to your servicing LIC branch.
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