Paying your LIC (Life Insurance Corporation) premium on time is crucial for maintaining an active policy, and one of the most convenient ways to make payments is through a credit card. However, many policyholders are often concerned about additional charges when using their credit cards for LIC premium payments. The good news is that there are ways to avoid these extra charges. In this guide, we will explore how to pay your LIC premium via credit card without incurring any additional costs.
Understanding LIC Premium Payments
The LIC offers a variety of plans to cater to different needs, ranging from life insurance to investment options. To keep your policy active, you are required to pay premiums either monthly, quarterly, semi-annually, or annually, depending on the policy you have chosen. While most people choose to pay premiums via bank transfers, UPI, or cheque payments, paying through a credit card is a modern and efficient alternative that many individuals prefer.
The primary reason for this preference is the convenience and flexibility a credit card offers. However, many are wary of the processing fees or transaction charges that may apply when paying LIC premiums via a credit card. Understanding how to bypass or eliminate these charges is essential for optimizing your payment experience.
Common Charges for Credit Card Payments
Before delving into how to pay your LIC premium via credit card without charges, it’s important to first understand the typical charges associated with such payments:
- Processing Fees: Some payment portals may charge a small fee for processing credit card payments, which could range from 1% to 2% of the total premium amount.
- Bank Charges: Certain banks may also levy additional fees for using their credit card to pay insurance premiums.
- GST (Goods and Services Tax): The GST on insurance premium payments made via credit card might vary based on the payment gateway used.
Although these charges are relatively small, they can accumulate over time, especially if you are paying a large premium amount. Therefore, it’s crucial to identify methods that help you avoid these additional costs.
Ways to Pay LIC Premium Through Credit Card Without Charges
1. Use LIC’s Official Online Portal
The most reliable method to ensure you avoid extra charges when paying your LIC premium via credit card is to use the official LIC portal. When paying through LIC’s official online platform, you may not face any processing fees, as they do not charge for payments made directly through their own system. Follow these steps for a seamless experience:
- Step 1: Log in to your LIC account on the official LIC website.
- Step 2: Navigate to the premium payment section.
- Step 3: Select credit card as your payment method.
- Step 4: Enter your credit card details and complete the payment.
Using the LIC official portal ensures that there are no hidden fees or processing charges. Additionally, it is a secure way to pay your premium, as you are dealing directly with the LIC’s secure payment gateway.
2. Utilize Online Payment Platforms with Zero Transaction Fees
Several online platforms allow you to make insurance premium payments through credit cards with zero charges. Some platforms may charge a fee, but others, particularly during special promotions or discounts, may offer zero fees. Always check for offers before proceeding with your payment. Some of the popular platforms include:
- Paytm: Paytm allows you to pay your LIC premium via credit card without any additional charges, especially when linked to your bank account. Paytm often runs promotions where you can receive cashback or waive off transaction fees for credit card payments.
- PhonePe: Similarly, PhonePe can be another platform to process your LIC premium payment. At times, PhonePe offers fee-free payments via credit cards, especially for high-value transactions or specific LIC plans.
- Google Pay: Google Pay also allows LIC premium payments via credit card, without imposing extra charges for most payments. However, it’s recommended to verify the terms before proceeding with your payment.
These platforms often have strong partnerships with LIC, ensuring smooth processing of your payment without additional costs.
3. Check for Credit Card Offers and Promotions
Credit card providers such as HDFC Bank, ICICI Bank, and SBI Cards often run special promotions where they waive processing fees on premium payments for LIC. These offers can significantly reduce or eliminate any transaction fees you might normally incur.
- Step 1: Check with your credit card issuer to see if they offer any ongoing promotions or offers for paying premiums through credit cards.
- Step 2: Review the terms and conditions to ensure that no hidden fees apply.
- Step 3: Make your payment when an offer is active to benefit from fee-free transactions.
Additionally, some credit card companies offer reward points or cashback for insurance premium payments. While these offers are not directly related to avoiding fees, they do enhance the overall value of paying via credit card.
4. Choose the Right Payment Gateway
Another way to avoid extra charges when paying via credit card is by selecting the right payment gateway. Payment gateways like Razorpay or Instamojo have established partnerships with LIC to offer fee-free payments.
Many of these platforms offer seamless payment experiences, especially when paying large sums, without adding any extra charges. Ensure that the payment gateway used does not have hidden service fees before finalizing the payment.
- Razorpay: Often, Razorpay is integrated with LIC’s payment options and offers no extra fees for credit card transactions, making it an excellent choice for those looking to avoid additional costs.
- Instamojo: Instamojo is another option that sometimes runs campaigns with no transaction fee on LIC premium payments.
5. Avoid Using Third-Party Payment Gateways
When you use third-party payment services that aren’t affiliated directly with LIC, you may encounter unexpected fees. These third-party platforms often charge additional amounts for processing payments made via credit cards. It’s best to avoid such services unless they explicitly state that they do not charge extra fees for premium payments.
6. Leverage Automatic Payment Features
Some credit card providers allow you to set up automatic payments for recurring expenses such as LIC premiums. This feature often waives off any processing or convenience fees, especially if your premium is automatically charged to your credit card. This approach can also help you avoid missing any payments, as it ensures timely premium deductions.