What Is The Late Payment Charge For A LIC Premium?

The Late Payment Charge For A LIC Premium- LIC of India charges an additional expense, in the event that you miss the due premium date. This expense is added to the normal premium once you cross the effortlessness period and the approach slips. You need to pay the postponed LIC premium alongside the late charges when you need to resuscitate the strategy once more. The LIC late expense mini-computer will assist you with working out this additional sum charged for strategy restoration. From the principal neglected premium, LIC of India offers 30 days during which you can take care of the postponed sum. This is the beauty time frame. For month to month premium installments, the elegance time frame is restricted to 15 days in particular. Assuming you make the deferred premium installment during this period, you won’t be charged an additional expense.

Do you know what the late payment charge is for a LIC premium? If you’re not sure, you’re not alone. A lot of people don’t know about this charge, or they think it’s insignificant. But the late payment charge can have a big impact on your LIC policy. In this article, we’ll explain what the late payment charge is and what you need to do if you’re going to be late on your premiums.

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What Is The Late Payment Charge For A LIC Premium?

The late expense is charged when the Arrangement crosses the elegance time frame as referenced in the approach archives. The LIC late expense charges will be on interest-based importance a yearly charge will be collected on the policyholder. The late expense will be charged as interest on the due installment. The Interest of 9.5% per annum will be charged on the due sum as a LIC late expense which will be paid at the hour of strategy restoration.

India’s biggest life safety net provider Disaster protection Enterprise of India (LIC) is prestigious for various sorts of approaches reasonable for individuals with various prerequisites. The terms presented by the organization are very adaptable to deal with the particular requirements of clients. A strategy presented by LIC stays dynamic as long as the superior sum is paid for a particular term. Inability to pay the top notch on time will bring about lapsation of the strategy. At the point when a strategy breaches, policyholders or recipients may not get any advantages from the inclusion.

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The Late Payment Charge For A LIC Premium

The Late Payment Charge For A LIC Premium Overview

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Why is it important to pay LIC premiums on time?

Paying an insurance expense on time is significant on the grounds that it ensures the policyholder to keep getting the monetary inclusion that the contract offers. Assuming you neglect to pay the charges on time, your approach slips and assuming that happens you stop partaking in the advantages presented under your arrangement. Like purchasing a LIC premium, it is similarly vital to remain refreshed with the essentials of the arrangement including its different circumstances. You should know that to keep your arrangement dynamic and to avoid suffering late expense or consequence, you should make the LIC strategy installment ideal.

LIC Revival Period Considered by The LIC Premium Payment Late Fee Calculator

This apparatus computes the late charge in view of when the approach is being restored.

  • On the off chance that a strategy is resuscitated following 30 days to multi month 14 days, the number cruncher looks at this as a deferral of multi month.
  • On the off chance that a strategy is resuscitated following multi month 15 days to 2 months 14 days, the number cruncher looks at this as a deferral of 2 months.
  • In the event that a strategy is resuscitated following 2 months 15 days to 90 days 14 days, the number cruncher looks at this as a postponement of 90 days.
  • On the off chance that a strategy is restored following 3 months 15 days to 4 months 14 days, the number cruncher looks at this as a postponement of 4 months, etc.
  • At this point, the late installment charge for LIC expenses is 9.5%.

How to Calculate The Late Payment Fees for LIC Premiums?

Are you wondering how to calculate the late payment fees for LIC premiums? Wondering if there’s a fee for every day you’re late? Well, the answer to both questions is yes. In this article, we will outline the process for calculating the late payment fees for LIC premiums, as well as give you some tips on how to avoid incurring these fees. So read on to learn everything you need to know about late payment fees!

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The LIC Premium Installment Late Expense Adding machine considers the accompanying elements to provide you with a gauge of the complete late expense charged –

  • Date of 1st unpaid premium

  • Date of revival

  • Premium amount

  • Mode of premium payment

  • Total premium due

  • Current interest rate

Sample Late Fee Calculation Using the LIC Premium Payment Late Fee Calculator

Say that you quit paying charges for your LIC strategy on fifth July 2021 and need to restore it on fifth July 2024. Take the accompanying model –

  • Premium payment mode – Monthly

  • Monthly premium – Rs.10,000

  • Lapse period – 1 year

  • Interest rate – 9.5%

Therefore,

  • Number of installments pending – 13

  • Total premium due – 13*10000 – Rs.1,30,000

  • Late premium fee @9.5% – Rs.6,175

  • Total revival amount – Rs.1,36,175

The LIC strategy restoration plan ought to be concentrated on exhaustively so your recovery is smooth. Further, it is fitting to resuscitate a strategy as getting another one will charge you higher expenses in light of your age and medical issue.

What are the late payment charges of LIC premiums?

Late LIC installment charges exacted on a strategy premium is determined according to the time slip by between the expiry date and the resulting months postponed in making the installments.

Below table will enhance your understanding further:

Charges of Late Fee (Re 1/premium)1st Month2nd Month3rd Month4th Month5th Month6th Month
6%0.0050.010.0150.020.0250.03
7.50%0.006250.01250.018750.0250.031250.0375
9.50%0.007920.015830.023750.031670.039580.0475

How to pay your LIC premium to revive it?

Licence insurance is important for businesses of all sizes. It’s a way to protect your business from potential losses in the event of a claim, and can help you avoid financial losses in the event of an incident. But what happens if your LIC premium isn’t being paid? In this article, we’ll explain how to pay your LIC premium and revive your insurance policy. We’ll also provide some tips on how to avoid paying your premiums late. Ready to get started? Let’s go!

There are two ways to make your LIC policy premium payment. They are online and offline.

1. Online payment methods include:

  • Official LIC gateway – Installment should be possible by visiting the authority LIC entry and utilizing internet banking offices like charge or Mastercard, UPI, wallets and so forth.
  • Approved Banks – There are many approved banks that acknowledge LIC premium installments. A portion of these banks are to be specific; Pivot Bank, Association bank, IDBI bank and so forth.
  • Vendor Mode – Trader modes can likewise be utilized to make premium installments. Some of them incorporate approved specialists known as Enabled Point,
  • Resigned LIC Representative assortment focuses, LIC partners and so on.
  • Franchisees – Franchisees are likewise accessible to make installments, for example, Paytm, AP On the web, InstaPay and so on.

2. Offline payment methods include:

  • NACH – NACH or Public Robotized Clearing House is an installment choice that can be used by LIC policyholders to make installments. Under this installment mode, your bank deducts LIC premium at a pre-chosen date, which is then transmitted to LIC
  • Charge Cover – Bill Pay or EBPP (Electronic Bill Presentment and Installment) is an interaction under which a LIC proclamation is shipped off the policyholder electronically.
  • The client then, at that point, pays the premium by means of a few electronic method of installments at his/her dispersal
  • ATM – ATMs of Pivot Bank and Company banks can likewise be utilized by LIC clients to make installments of expenses

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