LIC Online Premium Payments Explained: Everything Policyholders Need To Know

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The Life Insurance Corporation (LIC) of India has been a trusted name in insurance for decades, offering a wide range of plans that cover millions of policyholders nationwide. Established in 1956, LIC has since evolved to provide online services to streamline its premium payment process, helping customers stay on top of payments from anywhere. Here’s a comprehensive guide to LIC’s online premium payment methods and options.


Understanding LIC Premium Payments
LIC provides an array of insurance plans, including term insurance, ULIPs (Unit-Linked Insurance Plans), and pension plans. Policyholders pay periodic premiums for coverage, and LIC invests these funds in securities and market-linked avenues. These investments generate returns, which LIC uses to fulfil claims, whether for policyholders’ dependents or at the policy’s maturity. The LIC online premium payment facility allows customers to maintain timely payments, ensuring they remain insured without the hassle of visiting a branch.

Benefits of LIC’s Online Premium Payment Facility

The LIC online payment option offers several advantages


  • Convenience: With LIC’s online payment portal, policyholders can make payments from anywhere, anytime.
  • Instant Receipts: Payments made online generate immediate receipts, simplifying record-keeping and verification.
  • Diverse Payment Methods: LIC accepts debit and credit cards, net banking, UPI, and mobile wallets, catering to a variety of customer preferences.
  • Security: The platform employs encryption and authentication methods to protect users’ sensitive data.
  • 24/7 Availability: The online service operates around the clock, so customers can pay at their convenience, even on weekends and holidays.
LIC’s Online Payment Channels

LIC provides multiple online payment channels to cater to its large customer base. Here’s a breakdown of the available options

  • LIC Website: Policyholders can make payments directly on the official LIC portal using net banking, debit or credit cards, and UPI.
  • Partner Banks: LIC has partnerships with select banks like Axis Bank, Corporation Bank, IDBI Bank, and City Union Bank, allowing customers to pay at these bank branches or through their online platforms.
  • Franchisees: LIC also collaborates with authorised franchisees such as AP Online, MP Online, InstaPay, and Paytm, which serve as additional premium collection centres.
  • Merchants and LIC Associates: Customers may choose from a range of authorised agents, including retired LIC employees, chief organisers, and premium point agents, to facilitate premium payments.
Step-by-Step Guide to LIC Online Premium Payment

There are various ways to make online LIC premium payments, depending on whether or not the customer is a registered user of the LIC portal.


For Registered Users
  1. Log in to the LIC Website: Go to the official LIC portal, then click on the ‘Customer Portal’ and select ‘Registered User’.
  2. Sign In: Enter your user ID, email, mobile number, password, and date of birth.
  3. View Policies: Under the ‘Self/Policies’ section, select the policy that requires premium payment.
  4. Choose Payment Method: After reviewing the premium due date, select ‘Pay Premium’ and choose a preferred payment option.
  5. Complete Payment: Fill in the required details to finalise the transaction.
  6. Receive Payment Confirmation: A receipt will be sent to the registered email ID, which can be downloaded and printed.
For Unregistered Users
  1. Go to the LIC Website: Visit the official LIC site and navigate to ‘Online Services’, then select ‘Pay Premium Online’.
  2. Choose ‘Pay Direct’ Option: You’ll be redirected to a customer validation form.
  3. Enter Policy Details: Provide your policy number, instalment premium amount, date of birth, email ID, and mobile number, then click ‘Submit’.
  4. Proceed to Payment: Verify the details and select your preferred payment method.
  5. Payment Confirmation: A receipt will be sent to your email, confirming successful payment.
LIC Online Premium Payment Channels Explained

LIC provides several methods for online premium payment, each with unique steps and security features

  1. Net Banking: Policyholders can link LIC as a biller in their bank’s internet banking portal. This secure method requires adding LIC as a payee, after which premium payments can be made as per the bank’s instructions.
  2. Credit/Debit Cards: Premiums can be paid using most major credit or debit cards by entering the card number, CVV, and expiration date. LIC’s IDBI payment gateway displays the service fee details before proceeding.
  3. UPI Payments: Policyholders can quickly pay through UPI applications by entering policy information and making a direct transfer via bank UPI apps.
  4. QR Code: Another easy method is by scanning a QR code displayed on the LIC payment page, allowing instant payments.
Premium Payment Options through LIC’s Partners

In addition to online portals, LIC’s partnerships with authorized banks, franchisees, and agents offer alternative ways for customers to pay their premiums

  • Authorised Banks: Banks like Axis, IDBI, and Corporation Bank accept LIC premium payments in-branch, ensuring accessibility for those who prefer banking channels.
  • Government Portals (AP Online & MP Online): Government-backed portals facilitate LIC payments, especially convenient for residents of Andhra Pradesh and Madhya Pradesh. LIC premiums can be paid here in cash, although Salary Savings Scheme policies are excluded.
  • Agents and Merchants: LIC-authorised agents like Senior Business Associates (SBAs) and retired employees are authorised to collect premiums. They issue valid receipts, and policyholders can make payments either in cash or by cheque.
Important Points to Note
  • Late Fees: A 9.5% late fee, with a minimum of Rs. 5, is applicable for payments made after the due date.
  • Advance Payments: Premiums can be paid up to 30 days before the due date, though some term plans allow advance payment only 15 days ahead.
  • Policy Coverage: Only active policies are eligible for premium payments through authorised channels. Payments cannot be made for Salary Savings Scheme policies or for the coming financial year.
  • No Extra Service Fees: LIC does not levy additional service fees for making premium payments through authorised channels, providing free access to this facility.