Lic Premium Amount Calculator Without Tax
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Reviewed by Calculator Editorial Team
This LIC Premium Amount Calculator helps you determine the premium amount for Life Insurance Corporation (LIC) policies without including taxes. The calculator provides accurate results based on standard LIC premium calculation methods and includes clear explanations of the formula and assumptions.
How to Use This Calculator
Using the LIC Premium Amount Calculator is straightforward. Follow these steps:
- Enter the sum assured amount in the "Sum Assured" field.
- Select the appropriate policy term from the dropdown menu.
- Choose the policy type (e.g., Endowment, Term, Whole Life).
- Click the "Calculate" button to get the premium amount.
The calculator will display the premium amount based on the inputs provided. You can reset the form at any time using the "Reset" button.
Formula Used
The premium amount is calculated using the following formula:
Premium Amount Formula
Premium Amount = (Sum Assured × Annualized Rate × Policy Term) / 1000
Where:
- Sum Assured is the amount of coverage you want.
- Annualized Rate is the annual premium rate based on policy type and term.
- Policy Term is the duration of the policy in years.
The Annualized Rate is determined based on standard LIC premium tables and may vary depending on the policy type and term selected.
Worked Example
Let's calculate the premium amount for a sum assured of ₹5,00,000, a policy term of 20 years, and an endowment policy type.
Example Calculation
Given:
- Sum Assured = ₹5,00,000
- Policy Term = 20 years
- Policy Type = Endowment
- Annualized Rate = 0.05 (5%)
Calculation:
Premium Amount = (5,00,000 × 0.05 × 20) / 1000 = ₹5,000
In this example, the calculated premium amount is ₹5,000 per year.
Interpreting Results
The premium amount displayed by the calculator is the annual premium you would need to pay for the selected policy. This amount is calculated based on the sum assured, policy term, and policy type.
Consider the following when interpreting the results:
- The premium amount is an estimate and may vary based on actual LIC premium tables.
- Additional charges and taxes may apply when purchasing the policy.
- Consult with a financial advisor or LIC representative for personalized advice.
FAQ
What is the LIC Premium Amount Calculator used for?
The LIC Premium Amount Calculator is used to estimate the premium amount for LIC policies without including taxes. It helps you understand the cost of insurance coverage based on your sum assured and policy term.
How accurate is the calculator?
The calculator provides an estimate based on standard LIC premium calculation methods. For exact premium amounts, consult LIC's official premium tables or a financial advisor.
Can I use this calculator for different policy types?
Yes, the calculator supports different policy types such as Endowment, Term, and Whole Life. Select the appropriate policy type to get accurate premium estimates.
Are taxes included in the premium amount?
No, the premium amount calculated by this tool does not include taxes. Additional charges and taxes may apply when purchasing the policy.
How do I get the exact premium amount for my policy?
For exact premium amounts, consult LIC's official premium tables or contact a LIC representative. The calculator provides an estimate based on standard rates.