LIC Premium Calculator



LIC Premium Calculator 2025 – Estimate Your Life Insurance Premium Updated February 2026

Content by CalculatorZone Financial Editors
Insurance and financial planning content for Indian policyholders. About our team
Sources: LIC India, IRDAI, Income Tax India

Free LIC Premium Calculator

Estimate your Life Insurance Corporation of India premium, maturity value, and tax savings in seconds.

Calculate LIC Premium

The LIC Premium Calculator helps Indian policyholders estimate monthly, quarterly, half-yearly, or annual premiums for Life Insurance Corporation of India policies. Whether you are choosing Jeevan Anand, Tech Term, or New Jeevan Labh, this calculator gives you an instant cost estimate before visiting an agent.

Key Takeaways

  • Age is the biggest factor: Higher age means higher premium — buy life insurance early
  • Claim settlement 98.5%+: LIC has India's highest claim settlement ratio
  • Section 80C benefit: LIC premiums qualify for deduction up to Rs 1.5 lakh/year
  • Term plans cheapest: LIC Tech Term (Plan 854) offers lowest premiums among all plans
  • Grace period: 30 days for annual/half-yearly, 15 days for monthly — avoid lapse
  • Revival window: Can revive lapsed policy within 5 years from last unpaid premium

What is LIC?

Life Insurance Corporation of India (LIC) is India's state-owned life insurance company, established in 1956 by merging 245 private insurers. As of 2025, LIC serves over 29 crore (290 million) policyholders, making it the world's largest insurance company by policyholder count.

  • Founded: 1956 (nationalization of Indian insurance sector)
  • Headquarters: Mumbai, Maharashtra
  • Claim Settlement Ratio: 98.5%+ for individual policies
  • Product Range: Term plans, endowment plans, money-back, ULIPs, pension plans
  • Global Presence: Offices in Fiji, Mauritius, UK, Singapore, and other countries

LIC's sovereign backing by the Government of India gives policyholders unmatched security compared to private insurers.

How is LIC Premium Calculated?

LIC uses actuarial tables to calculate premiums based on mortality rates, interest rate assumptions, and policy expenses.

Premium Calculation Formula

Premium = (Mortality Charge + Expense Loading) / (1 - Guaranteed Surrender Factor)

For Endowment Plans:
Annual Premium = (Sum Assured × Tabular Premium Rate per Rs 1,000) / 1,000

Premium Payment Modes

LIC premium payment mode comparison
ModeMultiplierEffective Annual Cost
Annual1.00×Lowest cost — save 2-4%
Half-Yearly0.51×0.5-1% more than annual
Quarterly0.26×1-2% more than annual
Monthly0.09×Highest cost — premium via NACH

1. LIC Jeevan Anand (Plan 915)

  • Type: Whole life endowment plan
  • Entry Age: 18–50 years
  • Policy Term: 15–35 years
  • Sum Assured: Minimum Rs 1 lakh
  • Benefit: Maturity + death benefit continues lifelong after maturity

2. LIC New Jeevan Labh (Plan 936)

  • Type: Limited premium endowment plan
  • Entry Age: 8–59 years
  • Policy Term: 16, 21, or 25 years
  • Premium Paying Term: 10, 15, or 16 years
  • Benefit: Pay for fewer years, covered for longer

3. LIC Tech Term Plan (Plan 854)

  • Type: Pure term insurance (online only)
  • Entry Age: 18–65 years
  • Sum Assured: Minimum Rs 50 lakh
  • Benefit: Lowest premium — no maturity benefit
  • Feature: Joint life option available

Sample Annual Premiums (Approximate)

Sample LIC annual premiums by plan
PlanAgeSum AssuredTermAnnual Premium
Jeevan Anand30 yearsRs 5 lakh20 yearsRs 24,000
New Jeevan Labh30 yearsRs 5 lakh21 yearsRs 22,500
Tech Term30 yearsRs 50 lakh30 yearsRs 8,500
Jeevan Anand40 yearsRs 10 lakh20 yearsRs 62,000
Tech Term40 yearsRs 1 crore20 yearsRs 28,000

Note: Premiums are approximate. Actual premiums depend on health, smoking status, and current LIC rates. Use the calculator above for a precise estimate.

Factors Affecting LIC Premium

Factors affecting LIC premium rates
FactorImpact on PremiumExample
AgeOlder age = higher premium30 vs 40: premium doubles for endowment
Sum AssuredHigher cover = higher premiumRs 5L vs Rs 10L: premium doubles
Policy TermLonger term = higher total outgo15-year vs 25-year plan differs significantly
GenderFemale rates lower for term plansWomen pay 5-10% less on term insurance
Smoking StatusSmokers pay significantly higher30-50% higher premium for smokers
Payment ModeMonthly slightly higher than annualMonthly adds 2-4% to annual cost
RidersEach rider adds to base premiumAccidental rider adds Rs 500-2,000/year

How to Use the LIC Premium Calculator

  1. Select plan type: Term, endowment, money-back, or ULIP
  2. Enter your age: Age at policy commencement
  3. Choose sum assured: The coverage amount you need
  4. Set policy term: Duration in years
  5. Select premium mode: Annual, half-yearly, quarterly, or monthly
  6. Add riders: Accidental death, critical illness, disability
  7. View results: See premium breakdown and total outgo

Quick Example: 30-Year-Old Male, Non-Smoker

Plan: LIC Tech Term Plan 854
Sum Assured: Rs 1 crore
Policy Term: 30 years
Mode: Annual

Estimated Annual Premium: Rs 18,000–22,000
Monthly equivalent: Rs 1,500–1,835
Tax saving (30% bracket): Rs 5,400–6,600/year

Use the calculator for your exact premium based on current LIC rates.

Tax Benefits on LIC Premium

LIC premiums qualify for significant tax deductions under the Income Tax Act 1961:

Section 80C Deduction

  • Maximum deduction: Rs 1.5 lakh per year
  • Applicable for: All LIC premium payments
  • Condition: Premium must not exceed 10% of sum assured (for policies issued after April 1, 2012)
  • Eligible for: Self, spouse, and dependent children

Section 10(10D) Exemption

  • Maturity and death benefits are fully tax-free
  • Condition: Annual premium does not exceed 10% of sum assured
  • No TDS on LIC maturity proceeds below Rs 1 lakh

Tax Saving Example

If you pay Rs 50,000 annual LIC premium in the 30% tax bracket, you save Rs 15,000 in taxes. Over a 20-year policy, total tax savings can exceed Rs 3 lakh, effectively reducing your net premium by 30%.

LIC vs Private Insurance Comparison

LIC vs private insurance comparison
ParameterLICPrivate Insurers
Government BackingYes (sovereign guarantee)No
Claim Settlement Ratio98.5%+95–98% (varies)
Branch Network2,048+ branches across IndiaLimited branches
Premium (Term)Slightly higherOften lower for term
Product RangeLimited but trustedWider variety
Online ServicesImproving (licindia.in)Fully digital
Trust FactorHighest (70+ years legacy)Moderate to high

LIC Maturity Value Calculation

For endowment plans, the maturity value includes:

Maturity Value = Sum Assured + Accrued Bonus + Final Additional Bonus

Accrued Bonus = Sum Assured × Bonus Rate × Policy Term
Example: Rs 5,00,000 × Rs 48/1,000 × 20 years = Rs 4,80,000 bonus

...LIC India website publishes annual bonus rates each year.

LIC & Life Insurance Around the World

Life insurance is a cornerstone of financial planning globally. While LIC dominates the Indian market, other countries have their own major state or private insurers with distinct structures, products, and regulatory oversight.

Life insurance markets around the world
CountryMajor Insurer(s)RegulatorPopular ProductsKey Features
IndiaLIC (state-owned, ~65% market share), SBI Life, HDFC Life, ICICI PrudentialIRDAI (Insurance Regulatory and Development Authority of India)Endowment plans, Term plans (Tech Term, Saral Jeevan), ULIPs, Money-backLIC founded 1956; India's largest financial institution. 80C deduction up to ₹1.5L. Section 10(10D) exempts maturity proceeds. LIC premium calculator available.
United StatesNorthwestern Mutual, New York Life, MetLife, Prudential, State FarmState insurance departments (NAIC coordinates nationally)Term life, Whole life, Universal life (UL/IUL/VUL), Group lifeNo federal insurer; each state licenses separately. Death benefits generally income-tax-free (IRC Sec 101). Premium deductible for group plans via employer. Life insurance calculator available.
United KingdomAviva, Legal & General, Prudential (now split from M&G), Royal LondonFinancial Conduct Authority (FCA) + Prudential Regulation Authority (PRA)Term assurance, Whole of life, Critical illness cover, Income protectionUK life insurance market £180B+ in assets. No specific tax deduction for premiums but life cover often in trust for IHT mitigation. IPT (Insurance Premium Tax) 12% applies.
AustraliaTAL, MLC (Nippon Life), AIA, BT (Westpac), Zurich, OnePath (ANZ)APRA (Australian Prudential Regulation Authority) + ASICLife insurance, TPD (Total & Permanent Disability), Trauma/Critical Illness, Income protectionSuper fund integration common — life insurance inside super is tax-deductible. Retail vs Group (inside super) pricing differs significantly. 2019 Protecting Your Super reforms changed default cover rules.
GermanyAllianz, R+V, Debeka, AXA, Zurich DeutschlandBaFin (Federal Financial Supervisory Authority)Risikolebensversicherung (term), Kapitallebensversicherung (endowment), Private Rentenversicherung (annuity)German life insurance among Europe's most conservative and stable. Old-style endowment policies face low guaranteed rate environment. Premiums for risk policies not tax-deductible but savings-based policies have tax advantages.
CanadaManulife, Sun Life, Great-West Life (Canada Life), iA FinancialOSFI (federally & provincially regulated)Term life, Whole life, Universal life, Critical illness, Disability insuranceAssuris protects policyholders up to $200K if insurer fails. Life insurance proceeds are income-tax-free to beneficiaries. ACB and adjusted cost base rules apply to permanent life policies. Canadian financial calculator for related planning.

Insurance products, regulatory environments, and tax rules vary significantly by jurisdiction and change frequently. Consult a licensed insurance advisor in your country before purchasing a policy.

Frequently Asked Questions

LIC premium is calculated using actuarial tables that account for age, sum assured, policy term, gender, smoking status, and selected riders. The tabular premium rate (per Rs 1,000 sum assured) is multiplied by the sum assured and adjusted for payment mode. Online term plans like Tech Term use mortality data and medical underwriting for precise individual rates.
Key factors include: age at policy commencement (older age increases premium significantly), sum assured (higher coverage means higher premium), policy term, gender (female rates are lower for term plans), smoking status (smokers pay 30-50% more), premium payment mode (annual is cheapest), and optional riders. Health conditions may require additional loading for some plans.
Minimum sum assured varies by plan: Rs 1 lakh for Jeevan Anand (Plan 915) and most endowment plans, Rs 50,000 for some older plans, and Rs 50 lakh for LIC Tech Term Plan 854. IRDAI guidelines recommend life cover of at least 10-15 times your annual income. Most financial planners suggest a minimum of Rs 1 crore for adequate family protection.
Yes, LIC offers monthly premium payment through NACH (National Automated Clearing House) auto-debit from your bank account. Monthly mode is slightly more expensive than annual mode — the monthly installment equals approximately 8.8% of the annual premium (slightly higher than one-twelfth). Annual payment gives the best value and is recommended if cash flow permits.
LIC provides a grace period of 30 days for annual, half-yearly, and quarterly premium modes, and 15 days for the monthly mode. During the grace period, the policy remains in force. If the policyholder passes away during the grace period, the death benefit is payable (with unpaid premium deducted). Missing the grace period causes policy lapse, stopping all benefits.
A lapsed LIC policy can be revived within 5 years from the date of first unpaid premium. Revival requires: payment of all unpaid premiums with interest (typically 9-10% per annum), a good health declaration, and sometimes a medical examination. LIC periodically offers revival campaigns with concessions on interest charges. Reviving is generally preferable to buying a new policy as the premium would be higher at an older age.
Yes, LIC premiums qualify for deduction under Section 80C of the Income Tax Act up to Rs 1.5 lakh per year. The premium must not exceed 10% of the sum assured for policies issued after April 1, 2012. Maturity proceeds and death benefits are exempt from tax under Section 10(10D) subject to the same 10% condition. GST (18%) paid on premiums is not eligible for 80C deduction.
Term plans (like Tech Term Plan 854) provide pure life cover — a death benefit is paid if the insured dies during the term, but there is no maturity benefit if the policyholder survives. Premiums are very low. Endowment plans (like Jeevan Anand) combine life cover with savings — you receive a lump sum at maturity plus life cover throughout the term. Endowment premiums are significantly higher but build a corpus.
Yes, LIC offers policy loans after the policy acquires a surrender value, typically after paying premiums for at least 3 years. The loan amount can be up to 90% of the surrender value for in-force policies. Interest rates are around 9-10% per annum. Policy loans are a convenient emergency option since approval is quick and no credit check is required. Unpaid loan principal and interest are deducted from the claim amount.
Surrender value is the amount LIC pays if you discontinue the policy before maturity. The Guaranteed Surrender Value (GSV) is available after 3 full years of premium payment and equals a percentage (30-35% initially, increasing over time) of premiums paid excluding first year and rider premiums. A Special Surrender Value may also be applicable and is generally higher. Surrendering early results in significant losses — premiums paid far exceed the surrender value in initial years.
LIC's individual death claim settlement ratio stands at 98.5%+ as of recent IRDAI annual reports, which is among the highest in the Indian insurance industry. This means LIC settles over 98.5 out of every 100 death claims it receives. The high ratio reflects LIC's strong underwriting practices and financial stability backed by the Government of India. IRDAI (Insurance Regulatory and Development Authority of India) publishes annual ratios for all insurers.
LIC riders are optional add-ons that extend base plan coverage for a small additional premium. Common riders include: Accidental Death and Disability Benefit Rider (adds death benefit in accidents), Critical Illness Benefit Rider (lump sum on diagnosis of 15 critical illnesses), Premium Waiver Benefit Rider (waives future premiums on disability), and New Term Assurance Rider (additional death cover). Each rider adds Rs 500-3,000+ to the annual premium depending on the sum assured and age.
Age has the most significant impact on LIC premiums. As mortality risk increases with age, older policyholders pay substantially more. For endowment plans, a 40-year-old may pay double the premium of a 30-year-old for the same sum assured and term. For term plans, the difference is even greater — a 50-year-old may pay 3-4 times more than a 25-year-old. This is why buying life insurance early in life maximizes value and minimizes total premium outgo.
LIC participating endowment plans earn bonuses declared annually by LIC's actuary. Simple Reversionary Bonus (SRB) is declared as a rate per Rs 1,000 sum assured (typically Rs 45-55 in recent years) and accrues over the policy term. Final Additional Bonus (FAB) is a one-time bonus paid at maturity or earlier death for long-term policies. Loyalty Additions may apply to policies of 10+ years. Bonuses are not guaranteed but have been consistently declared by LIC.
LIC maturity value for endowment plans = Sum Assured + Accrued Bonus + Final Additional Bonus. Example: Rs 5 lakh sum assured, 20-year policy, bonus rate Rs 48/1,000/year gives: Accrued bonus = Rs 5,00,000 x Rs 48/1,000 x 20 = Rs 4,80,000. Final Additional Bonus may add another Rs 50,000-1,50,000. Total maturity = approximately Rs 9.5-11 lakh before tax. Use the LIC premium calculator to model different scenarios and compare returns to other investment options.

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Use our free LIC premium calculator to compare plans, estimate maturity benefits, and find the best life insurance coverage for your family.

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About This Calculator

The CalculatorZone LIC Premium Calculator is maintained by our finance content team specialising in Indian insurance products. Last reviewed February 2026.

Sources & Methodology: Premium estimations are based on publicly available LIC tabular rates and IRDAI published data. Tax information follows the Income Tax Act 1961 Sections 80C and 10(10D). Claim settlement ratios sourced from IRDAI annual reports.

Expertise: This content is reviewed for accuracy against current LIC plan specifications and IRDAI circulars. Calculator results are approximate estimates — visit licindia.in or consult an authorised LIC agent for exact premiums and policy terms.

Financial Disclaimer: This LIC premium calculator provides estimates for informational and educational purposes only and does not constitute financial or insurance advice. Premium rates, bonus rates, and plan features vary and are subject to LIC's current guidelines and IRDAI regulations. Tax benefits are based on current Income Tax Act provisions and may change. Always consult a qualified financial advisor or IRDAI-licensed insurance advisor before purchasing any insurance product. CalculatorZone is not affiliated with or endorsed by Life Insurance Corporation of India.
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