Many of us have life insurance from LIC, a leading Life Insurer in India. Only a few know the options available with LIC to pay their premium. So let us discuss all available alternative channels to pay the premium.
It is foolish if you believe on your LIC Agent to come to your doorstep and will collect the premium. Usually Life Insurance is a long-term contract. Many of these agents’ are part time professionals. Otherwise, in all probability they may skip this profession after a few years. Hence, it is always advisable to pay on your own within due date.
In this post, we will look into all available options of LIC premium payment. It is nicely described in below info graph of LIC. You may also find this info graph on their LIC Website. Please note that LIC listed the options like AUTHORIZED BANKS AND MERCHANT as ONLINE mode of payment. However, it is very wrong.
As it is divided above, let us start our discussion one by one.
LIC’s Offline Premium Payment Options–
1) ECS Payment-This service has been started by LIC since 2004. Once you opt this facility then your premium will be deducted from your registered bank on a pre-determined date and the same will be remitted to LIC. To activate this facility, you must submit ECS mandate form to LIC and authorize your bank to deduct LIC premium. This is most reliable and efficient way of premium payment option. This facility can be availed if customers have a bank account and that bank is a member of the clearinghouse (Check with your bank for this facility). Few conditions to avail these facilities are listed below.
- You can either opt this facility while buying new plan or at a later stage of policy period too.
- If your premium payment is monthly, then the 5% additional extra premium charged under normal monthly premium payment will be waived off.
- You will not receive any receipt for this. However, you can avail the yearly premium paid certificate by the servicing branch of LIC.
- You can opt for Yearly/Half Yearly/Quarterly/Monthly mode of premium payment.
- To opt this facility, there must not be any dues of premium. Also the next premium date must be at least one month from the date of ECS option.
- Dates available for ECS are 7th, 15th, and 28th of a month.
- If you have any arrears of premium to be paid, then this will not be possible through ECS.
- If you opted for ECS then you cannot pay the premiums with any other available channels.
ECS now no more available. Now the NACH system started. Refer the full post about NACH HERE.
2) Bill Pay or EBPP-This is one more free service called as Bill Pay or EBPP (Electronic Bill Presentment and Payment). Under this service, the policyholder has to register his policy on the Banker’s site. Banks in turn will send the information to LIC. Once the authentication is done, then policyholder can pay the premium either opting Bank’s standing instruction method or through the bank’s internet banking facility. A receipt will be sent to the registered address after 2-3 days. An E – receipt will not be available for this method of payment. You can pay the premium even through CREDIT CARDS also.
This facility is available for active policies, non-ULIP, and non-SSS (monthly mode of payment). Authorized Banks for this facility are as below.
- HDFC Bank
- ICICI Bank
- Axis Bank
- Federal Bank
- Corporation Bank
- Citi Bank
- LIC Credit Cards
3) ATM Payment-You can pay the premiums even through an ATM of Axis Bank and Corporation Bank. This facility is also free and even banks will not charge you anything. To avail this facility, you must register with Banks by providing necessary policy information. Policies with Yearly, Half Yearly and Quarterly mode are allowed. However, monthly or SSS mode of payments not allowed.
LIC’s Online Premium Payment Options–
1) LIC Website-You can by the premium by registering one time on LIC website. You can pay the premiums through net banking facility. You can check the authorized banks by clicking HERE. You can pay the premiums either through registering as a customer or without registering also (My earlier post on this How to pay LIC premium online without registration?). The detailed description is available HERE. Few features are listed below.
- You can pay for all active policies. All modes of payment (except monthly or SSS) are allowed to pay.
- You can pay premiums for all endowment and ULIP plans. But not for any health insurance plans.
- Premium cannot be payable for next financial year.
- This is an online payment facility. Therefore, even one can pay the premium by being outside country.
- You receive the valid premium receipt immediately.
- This is fully free service.
- You can pay through net banking or using your credit/debit card.
2) Authorized Banks-You can pay the premium from the below mentioned two authorized banks.
- a) Axis Bank and b) Corporation Bank.
However, I am still unable to understand why LIC included this option as an online payment method. Because LIC mentioned on its site that you can pay the premium only at branch or extension counter or you can pay either through CASH OR CHEQUE. Few features of this facility are
- You can pay only for active policies. ULIP plans or monthly payable plans are not allowed to pay.
- The premium cannot be payable for next financial year.
- You will get a receipt from the bank, but not from LIC.
3) Franchisees-You can pay the premium through many of registered Govt and Private Companies. Again, this is wrongly mentioned in the above flowchart as the online payment option wrongly. However, it is mentioned that you can pay the premium only through CASH 🙂 Few features are listed below.
- You can pay only through CASH.
- You can pay for all active policies, non-ULIPs and non-monthly policies.
- You cannot pay the premium for next financial year.
- Signed receipt will be issued by these collection centers.
- This is also a free service.
The registered franchisees are as below.
4) Agents collection point–
This facility is again wrongly listed in above flow chart as an online option. Usually few agents are allowed to collect premium either through cash or through cheque. Few features of this facility are as below.
- You can pay the premiums for all active and all mode policies (except monthly or SSS).
- You can pay either through cash or through cheque. Outstation cheques not allowed.
- This is again free facility.
5) Senior business associate–
Few senior development officers are allowed to collect the premium. Features are more or equal to what is listed in agent’s collection point. Apart from collecting premium, these development officers provide below service to you.
- Issue of policy status.
- Issue of Loan/Revival/Surrender Value quotations.
- Issue of Forms.
- Issue of Certificates to the policyholders for income tax purpose.
- ULIP Statements.
6) Retired Employees collection payment–
Retired LIC employees authorized to collect insurance premium. They can only collect either through cash or through cheque. Features of this facility are listed as below.
- The premium can be payable only for active policies, and all modes (except SSS) policies can be payable.
- Outstation cheques not allowed.
- This is one more free service from LIC.
Hope this information will help you a lot in choosing a right way to pay your LIC premiums.