Table of Contents
- 1 Can LIC premium be paid by someone else?
- 2 Who is the person who pays premium of the policy?
- 3 Can I pay LIC premium for my father?
- 4 Is LIC covered under 80C?
- 5 What happens when premium is not paid?
- 6 How do I pay my LIC policy premium?
- 7 Can an insurance broker charge a fee for accepting premium payments?
MUMBAI: You cannot pay for someone’s insurance cover in India. As per the anti-money laundering provisions, the money for the premium must come from the bank account or the credit card of the insurance customer. Third-party payment for insurance premiums was banned to tackle money laundering.
When you sign up for an insurance policy, your insurer will charge you a premium. This is the amount you pay for the policy. Policyholders may choose from several options for paying their insurance premiums.
Can I pay my friends LIC premium online?
You can do so by either visiting the LIC website or by downloading LIC India’s app. To pay premiums through the insurer’s website, visit www.licindia.in and click on ‘Pay Premium online’ from the ‘Online Services portal’. Here you will get two options: a) Pay Direct (Without login) and b) Through customer portal.
There are three medium for any kind of online transaction. First you give the details of debit/credit/Internet banking. Then your money will be debited from your account and it goes to the payment gateway. Then that payment gatewwill give that money to the final destination in your case it was LIC.
Is LIC covered under 80C?
The tax benefits provided on the payment of LIC premium comes under section 80C of Income Tax Act, 1961.
Who collects premium payment from holder?
Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.
Under a term insurance policy the policyholder is not under any obligation to pay the premium, unlike a credit card repayment or a bank loan. If you do not pay a term insurance premium, there will be no legal action taken against you. However, the policy that you took will simply get lapsed.
You would be paying your LIC policy premium either offline at the cash counters or through online payment or with ECS. If you are an Income Tax payer, you would need the premium paid statement for the current financial year at the time of your income tax filing with your employer or with the Income Tax dept.
Can I pay my whole premium up front for life insurance?
You can pay your entire premium up front for some permanent life insurance, but it’s not recommended. What happens if I can’t make my life insurance payments? If you fail to pay premiums, your policy will eventually lapse and you will need to apply for coverage again (potentially at a higher price).
2) An insurance broker may charge a fee for the services involved in accepting premium payments where a written memorandum, signed by the insured and specifying the amount and purpose of such compensation, is obtained N.Y. Ins. Law § 2119 (c) (McKinney 2000).