LIC premium payments are made directly to the Life Insurance Corporation of India, the government-owned insurer that issued your policy

Your LIC premium is the regular payment you make to keep your life insurance policy active. The amount, due date, and payment method depend on the specific policy you bought and the terms you agreed to when you signed up. LIC offers several ways to pay — online, by check, through automatic deduction, or in person — and the method you choose affects how easily you can stay on schedule.

Missing a premium payment does not immediately cancel your policy, but it does trigger a grace period (usually 30 days for monthly premiums, longer for annual ones). If you do not pay within that window, your policy lapses and you lose coverage. Restarting a lapsed policy is possible but requires medical underwriting again and may cost more.

Key Takeaways

  • LIC premiums are due on a schedule you chose when you bought the policy — monthly, quarterly, half-yearly, or annually — and the date is printed on your policy document.
  • You can pay online through the LIC website or mobile app, by automatic bank deduction, by check mailed to your local LIC office, or in person at an LIC branch.
  • A grace period of 30 days (for monthly premiums) or 45 to 60 days (for annual premiums) protects you if you miss a due date, but your policy lapses if you do not pay by the end of that period.
  • Setting up automatic payment from your bank account is the most reliable way to avoid lapses and often qualifies you for a small discount.

Finding your premium amount and due date

Your policy document — the papers you received when you bought the insurance — lists your premium amount and the exact date it is due each payment period. If you cannot find the original document, log into your LIC account online using your policy number, or call your local LIC office and they will tell you both figures over the phone.

The due date does not change unless you request a change in writing to LIC. Some policyholders ask to move their due date to align with their paycheck or another regular income date, and LIC will process that request, but it requires a formal application to your branch office.

Online payment through the LIC website and mobile app

The LIC website (licindia.in) and the official LIC mobile app both allow you to pay your premium using your bank account, debit card, or credit card. To pay online, you will need your policy number and your registered mobile number or email address to log in.

Online payments are processed immediately, and you receive a confirmation number and receipt right away. This method works any time of day and does not require you to visit a branch or mail anything. Keep your confirmation number for your records in case there is a dispute later about whether the payment went through.

Automatic bank deduction (standing instruction)

Setting up a standing instruction with your bank means your premium is deducted automatically on the due date each month or payment period. To set this up, you provide LIC with your bank account number and authorization to deduct the premium. LIC then coordinates with your bank to pull the payment automatically.

This method eliminates the risk of forgetting a payment and is the most reliable way to keep your policy active. Many LIC policies offer a small premium discount (usually 1 to 2 percent) if you use automatic deduction. You can cancel or modify the standing instruction at any time by notifying both LIC and your bank in writing.

Payment by check or demand draft

You can mail a check or demand draft to your local LIC office with your policy number written on the back. The check should be made payable to "Life Insurance Corporation of India" or to your specific LIC branch. Mail it early enough that it arrives before your due date, because the payment is recorded on the date LIC receives and deposits it, not the date you mail it.

Keep a copy of the check or a photograph of it for your records. If you are unsure which LIC office to send it to, call the main LIC customer service line or check your policy document — it will list your servicing branch.

In-person payment at an LIC branch office

You can walk into any LIC branch office and pay your premium in cash or by check. Bring your policy number and a form of identification. The branch will give you a receipt immediately, and your payment is recorded on the spot.

This method is useful if you prefer to handle money in person or if you are already in the area. However, it requires you to travel to the office during business hours, which is less convenient than online or automatic payment if you have a busy schedule.

What happens if you miss a payment

If your premium is not paid by the due date, your policy enters a grace period. For monthly premiums, the grace period is 30 days. For annual premiums, it is typically 45 to 60 days (the exact length depends on your policy type). During the grace period, your coverage remains active, but you are technically in default.

If you pay during the grace period, your policy continues without interruption and no penalty is applied. If the grace period ends and you still have not paid, your policy lapses. A lapsed policy means you have no coverage, and anyone you named as a beneficiary will not receive a payout if you die while the policy is lapsed.

Restarting a lapsed policy is possible but involves submitting a new application, undergoing medical underwriting again, and potentially paying a higher premium based on your current age and health. It is far simpler to pay on time or during the grace period.

Discounts and incentives for timely payment

LIC offers a small premium reduction — usually 1 to 2 percent — if you pay your entire annual premium upfront instead of in monthly installments. Some policies also offer a discount if you set up automatic bank deduction. The exact discount varies by policy type and when you bought it, so check your policy document or ask your LIC agent.

These discounts are not automatic; you may need to request them or choose the payment method at the time you buy the policy. If you already have a policy and want to switch to annual payment or automatic deduction to get a discount, contact your local LIC office to discuss your options.

Frequently Asked Questions

Can I pay my LIC premium late without losing coverage?

Yes, during the grace period. For monthly premiums, you have 30 days after the due date. For annual premiums, it is typically 45 to 60 days. If you pay within that window, your coverage stays active. If you do not pay by the end of the grace period, your policy lapses and you lose coverage.

What if I pay online but the payment does not show up in my LIC account?

Check your bank account to confirm the money was deducted. If it was, contact LIC customer service with your confirmation number from the online payment. Processing delays are rare but do happen, and LIC can trace the payment and update your account. Keep your confirmation number and any bank statements showing the deduction.

Can I change my premium payment date?

Yes, but you must request it in writing through your local LIC office. Provide your policy number and the new date you want. LIC will process the request and confirm the change. This is useful if you want to align your premium due date with your paycheck or another regular income date.

Is automatic bank deduction safe?

Yes. You authorize the deduction in writing, and your bank processes it like any other standing instruction. You can cancel it at any time by notifying both LIC and your bank. If an unauthorized deduction occurs, your bank has dispute procedures to reverse it, just as with any other transaction.

What happens to my policy if I stop paying premiums?

Your policy lapses after the grace period ends. You lose all coverage, and your beneficiary will not receive a payout if you die. You can restart the policy by reapplying and undergoing medical underwriting again, but you will be older and may have new health conditions, which could result in a higher premium or denial.