EPF Registration Process
December 12, 2018
Credit for other Dependents [earlier called Family Tax Credit]
December 13, 2018

LIC Payment Online

Last Update Date : April 30, 2019
Estimated Read Time: 8 min

online LIC payment

LIC Payment Online ensures the policyholders to make online LIC policy premium payment from anywhere through different modes of payment Net Banking, ATM, Debit Card, Paytm, UTI and Corporation Bank, Cash, DD, Cheque, Agents etc. A real-time payment update is done, and a receipt is also issued towards the premium paid by the policyholder. Also, there are various Income Tax benefits provided under section 80C, 80CCC, 80D where the premium is paid from the taxable income by the policyholder.

What is LIC?

Life Insurance Corporation (LIC) is the oldest insurance company started in 1956, and it is the most trusted provider of life insurance in India. Over time, there are other providers in the market to cater to different needs of insurance. Let’s look at the benefits of ensuring a life that gives financial security to the dependents of the policyholder.

Benefits of Income Tax

Life insurance is a kind of contract between the policyholder and the insurer to pay an agreed sum of the amount on an event/maturity whichever is earlier against the premium paid by the policyholder. Still, there is a long way to go as everyone needs to understand the prominence of insuring life in India.

Keeping the vital role of life insurance in view in our lives, LIC has designed various policies/plans to suit the requirements of wide client base in India.

There are number of policies that are offered by LIC to its customers where they save and invest money along with getting tax exemption at the time of filing their tax return.

  • A person who pays LIC premium from his taxable income under Section 80C
  • A deduction is provided for any amount paid towards premium in the Annuity plans for receiving the pension as per Section 80CCC
  • As per Section 80D, there is a tax deduction available up to Rs. 25,000 in case any amount is paid towards Health Insurance of an individual or family
  • Section 80DD allows a deduction up to Rs. 75,000 towards premium paid for specific LIC plans for the maintenance of handicapped dependent. It may even go up to Rs. 1,25,000 in case the dependent has a severe disability.

Different modes of LIC Payment

To enrol for a certain LIC policy as per the individual’s requirement, one can first register online or visit any LIC office to buy a policy. A person can also get these services through Agents/Agencies. Once the policy is decided, one must start making the payment towards premium annually or twice in a year based on the policy category.

Currently, we are in the internet age where everything can be done at fingertips sitting anywhere in the world. Many institutions, banks, corporates etc. have shifted online which is making a lot of difference in creating the comfort and convenience that saves a lot of time and energy.

Now there are various ways to make the Premium payment as below:

  • Payment through LIC web site
  • Authorised Banks
  • Payment through Debit / Credit Cards / ECS (Electronic Clearance Services)
  • Payment through Paytm Accounts
  • Through ATM’s of UTI Bank and Corporation Bank
  • By Cash, Cheque, DD at Branch Office, Money Orders through Post
  • Agents and Authorized Collection Centers etc

LIC Online Payment – For Registered / Non-Registered Users

All the customer who has enrolled for LIC policies can register and pay the premium online on a real-time, safe and secure platform.

Step 1: To register for online services, one has to register on the LIC website (1)

And select ‘Pay Premium Online’ option on the screen to proceed further

Step 2: Here you get two options

Procedure for Un-Registered Users

  • By selecting ‘Pay Direct,’ you need to provide policy details to proceed further as per the slides below.
  • Click on ‘Proceed’ to enter the policy number, DOB, Instalment Premium, Email id, Mobile Number, Captcha and click on the Submit option to proceed further.

  • Now select the payment option to make the payment through Debit Card / Credit Card/ Net Banking etc.
  • Check the registered email id to check the Premium payment receipt

Procedure for Registered Users

  • By selecting ‘Through Customer Portal,’ it will prompt you to enter the “Login Id” and ‘Password’ to proceed further.

  • Select “Online Payments” to proceed further as shown below

  • The details of Policy will be displayed like Premium Due Period, Premium Amount on the screen

  • You can go through your details like Name, Mobile Number, Email id, Policy Number etc. to check and click on “Check & Pay” to proceed further

  • Choose the Payment Gateway – Bill Desk option to pay through multiple payment modes, Standard Chartered Bank or Axis Bank etc.,

  • After selecting “Bill Desk” below the screen that gets displayed to select the bank of your choice to complete making the premium payment.

  • Now the page gets redirected to the payment gateway, and you can select relevant option to make the payment.


  • Check the registered email id to check the Premium payment receipt

Authorised Banks & Collection Center

LIC has tied up with two leading banks – Corporation Bank and Axis Bank for hassle-free client experience to its customers. This ensures that the policyholders can make the premium payment at any of the above branches in India.

There are certain points to note as below in case of payment being made through these banks.

  • Only active LIC policy premiums can be paid by the customers where the bank provides a receipt after the payment
  • Cash/Cheque/DD payment can be made even in 30 days in advance at these branches except for Salary Saving Scheme (SSS) policies and Health policies
  • The advance payment for Term Insurance its 15 days before the due date where the policyholder can make the premium payment
  • 8% of the premium amount is to be paid in case of late payment of premium

We also have a huge number of customers who prefer to make the premium payment through offline modes. There are 4 service providers to provide offline payment services namely AP Online, MP Online, Suvidha Info serve, Easy Bill Limited. Here are the points to consider for offline payment.

  • Only Cash is accepted to make offline payment for active Non-SSS policies and Health Policies
  • There are no commission or fee charges applicable for the payment, and a receipt would be issued after the payment
  • List of Collection Center / Franchise details can be obtained from LIC web site. https://www.licindia.in/

Agents Collection of LIC Premium

In addition to different payment modes, LIC has also authorised Retired LIC Employees, Senior Business Associates (SBA), Selected Personnel to play the role of Collection Agents. These agents can collect the premium amount even for ULIPS apart from Health and SSS Policies via cash/cheque option. A signed receipt will be provided to the policyholder. LIC has provided SBAs with few more rights like access to policy status reports, Certificates for Income Tax, Quotations for Surrender etc. where there is no service fee applies.

People Also Ask

Q. Is the online premium payment option FREE of cost?

A. The online premium payment option is completely FREE to all the LIC policy holders.

Q. Can I pay online premium anytime?

A. The policy holders can pay the premium 30 days before the due date till policy is in force. Also, the LIC after the policy holder is registered sends regular bills/reminders along with details like Policy name, Premium Amount, Due date, Validity etc.

Q. Can I visit LIC office and pay the premium anywhere in India?

A. The LIC premium can be paid at any of the LIC offices through Cash/DD/Cheque across India.

Q. What are the important points to be noted for availing ECS facility through Bank account?

A. Here the policy holder need not visit the LIC branch physically and make payment directly at their comfort without paying any additional charges to the agents. The date on which payment must be made can be decided by the policy holder and authorise payments from the bank account he wishes to pay the premium.

Q. What are the eligible policies to pay online premium payment?

A. All ULIP/Non-ULIP policies except non-SSS (Salary Savings Scheme) / Health Insurance policy premiums can be paid online by the policy holders

Q. What is the difference between Online Premium Payment and Bill Pay Payment modes?

A. Online Premium Payment is an option where the payment is done through net-banking through LIC web site. Here the receipt is shared immediately which is digitally signed by LIC. Under Bill Pay payment mode, registration is made by the policy holder through a bank/vendor. LIC sends the invoice and payment is received through the vendor. Here the policy holder makes payment through Net banking, ATM, phone banking, credit card, etc. and the receipt is sent through post by LIC.

Q. Is the e-receipt valid for Income tax purpose?

A. Yes, the Income Tax receipt is valid for Income Tax purposes.

Q. When is the payment updated from by the LIC?

A. Once the payment is made, it gets updated immediately as its real-time, and a receipt gets issued immediately to the policy-holder for future reference.

Q. Can I revive a lapsed policy?

A. One can miss out on paying timely LIC premium as per the due date where the policy gets lapsed and void. So, by paying the outstanding premium, the policy can be made active by the policy-holder.

We are sure that by now that you must have noticed the importance of “Insurance” and the huge role of LIC in India.

It has succeeded and continued its efforts in spreading prominence among the citizens on life insurance and designed various policies as per the needs of different people and backgrounds. A policy holder can register for a certain policy and start paying the premium online through different options like Net banking, ATM, Authorised Banks, Agents, ECS etc. The online payment is updated real time, and a digitally signed receipt is provided to the policy holder for future reference from LIC India. The Income Tax Department of India has also given certain tax Exemptions to those individuals who pay the premium amount from their taxable amount based on their tax category.

What all you are waiting for? Go ahead to choose an appropriate Insurance policy for a hassle-free online payment along with enjoying the benefits. This, in turn, helps to financially secure yourself and your family from unforeseen circumstances.

How H&R Block can help you?

H&R Block is the world’s largest Income Tax filing services provider. Get your efiling of Income Tax done by our tax experts who will help you understand your tax modalities, prepare your return and file it online.


  • Knowledgeable & experienced tax professionals
  • Accurate calculation & speedy filing
  • Proactive tax-saving advice & year-round support
Leave a Rating!
5.0 (20 Votes)
Chetan Chandak (B.Com, LLB)
Chetan is the Head of Tax Research at H&R Block (India) with an experience of more than a decade in tax advising. He is also a regular contributor for some of the leading news publications in India such as Economic Times, Financial Express and Money Control. Professionally, Chetan is fascinated by international taxation and expat-related tax research.

Still Have Questions?