For many, maintaining their LIC policy is crucial for ensuring financial protection and meeting long-term goals. However, missing a premium payment deadline can lead to unnecessary penalties and additional fees. This late fee, along with the regular premium, becomes due once the grace period expires and the policy lapses.
To revive a lapsed policy, you'll need to pay both the overdue premium and the accumulated late fees. To find out the total amount required for policy revival, you can use the LIC late fee calculator.
This calculator can help you understand the financial impact of missed payments. It can accurately compute the late fees based on the policy's terms and the duration of the delay.
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LIC offers a variety of premium payment options to fit different financial schedules, including monthly, quarterly, half-yearly, and annual plans. Each of these plans comes with a specified due date for payments, along with a grace period — typically 15 to 30 days — during which you can make payments without incurring late fees.
The grace period is a window for you to make overdue premium payments (within a specific time) without incurring additional charges.
Here's how it works —
🕜Real-Time CaseImagine you have a LIC policy with an annual premium of ₹24,000, due on January 1st. If you miss the payment, you have a grace period until January 30th. On making a payment by the latter date, you can steer clear of any LIC late payment charges. |
To help you find out the late fees for missed premium payments, this LIC late fee calculator considers several key factors.
Here’s the information that you may need to provide for the calculation —
Example: Suppose your LIC policy premium is Rs. 10,000, due on June 1st. You make the payment on June 16th. Based on the calculator, you might find that a late fee applies for this 1-day delay after the grace period of 15 days.
The LIC Premium payment late fee calculator helps you figure out how much late fee you'll need to pay based on how long your payment has been overdue.
It does this by dividing the delay into specific periods.
Here’s a general overview of how it works —
Delay Between | Delay Considered for Calculation |
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30 days — 1 month and 14 days | 1-Month Delay |
1 month and 15 days — 2 months and 14 days | 2-Month Delay |
2 months and 15 days to 3 months and 14 days | 3-Month Delay |
3 months and 15 days to 4 months and 14 days | 4-Month Delay |
The LIC late fee calculator follows this pattern for each additional month of delay. By breaking down the overdue period into these specific time brackets, the calculator makes it simple and clear to understand how late fees are calculated.
💡Tips to Avoid LIC Penalty for Late Payment |
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Set Reminders and Alerts: Use digital reminders or calendar alerts to ensure you don’t miss payment deadlines Automatic Payments: Opt for automatic deductions from your bank account to avoid manual payment delays Regular Review: Regularly review your payment schedule and financial status to stay ahead of due dates |
Let's walk through an example of calculating late fees for an LIC policy to help you understand the process clearly —
Here’s the breakdown:
To calculate the LIC late payment charges, you should know about the lapse period, total due premium, interest rate, and additional fees added to the total premium.
Yes, you can pay your LIC premium after the due date. The company provides a grace period of 30 days during which you can make the payment without facing a late fee.
Yes, you can pay insurance premiums late. However, doing so may incur a late fee and could affect the policy's benefits or status. It’s best to make payments on time to avoid additional charges and complications.
The late fee charged by LIC varies based on the policy and the length of delay. It is calculated based on the total amount of pending premiums and an interest rate. The longer the delay, the higher the late fee will be.
If you pay the premium in the grace period, you can continue enjoying the coverage and benefits while keeping the policy in force.