Looking to secure your future? In this article will discuss its features, benefits, eligibility criteria and more details of LIC fixed deposit monthly income plan.
Life Insurance Corporation of India (LIC) is one of the country's most trusted life insurance companies, serving millions of policyholders. With an LIC plan, you can easily get financial security for your family.
With that said, as a policyholder, it's crucial for you to remain vigilant about your premium payment deadlines to continue enjoying uninterrupted coverage. Unfortunately, life can be unpredictable, and there might be instances when one fails to pay their premium on time. In such scenarios, LIC imposes a late payment charge.
This article will cover all the information regarding late payment charges on LIC premiums, the consequences, and more.
Late payment charges are essentially penalties imposed by insurance providers on policyholders for not paying their premiums within the stipulated grace period. The main objective is to encourage timely payments and maintain the financial integrity of the policy.
LIC offers a grace period for premium payment depending on the premium payment frequency -
During the grace period, the policy remains active without any interruption in the coverage. However, if the premium remains unpaid after this period, the late payment charges come into play.
LIC calculates late payment charges as a percentage of the premium amount, which might vary based on the policy's terms and conditions. Generally, the late payment fee is a nominal percentage of the due premium amount, and it can increase the longer the delay.
For instance, if the monthly premium is ₹1,000 and the late payment charge is 2%, the policyholder would owe an additional ₹20 as a penalty for the delay.
A detailed breakdown of the interest rates applicable to late LIC premium payments can be found in the following table:
|Late Payment Fee for INR 1 per Premium
Note: LIC considers the following while charging interest -
Beyond the late payment charge -
For policyholders who have unfortunately let their LIC policy lapse due to non-payment of premiums, it’s worth remembering that all is not lost! Keeping the best interests of its policyholders in mind, LIC offers several options to revive a lapsed policy.
Let’s take a closer look at the options -
If the survival benefit doesn't cover the entire revival cost, the deficit must be paid by you. On the other hand, if there's an overage, the extra amount is returned to you.
Here’s how you can avoid late payment charges with respect to your LIC policy -
While LIC provides a grace period considering the uncertainties of life, it's in the best interest of policyholders to ensure timely premium payments. Not only does it save one from late payment charges but also ensures continued protection for the insured and their loved ones.
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