April 14, 2025 · 13 mins read
Santhosh Kumar
The Life Insurance Corporation of India, commonly referred to as LIC is one of the country's oldest and most respected insurance companies. With millions of policies in force nationwide, the question often arises: “Can we pay LIC premium through credit card?” The surge in digital payment methods has created a need for easier premium payment solutions. Paying LIC premiums with a credit card makes the whole situation easier and comes with a plethora of additional financial perks, such as cashback, reward points, and interest-free credit for a period of time.
Due to the trend of cashless payments, there have also been concerns among policyholders regarding security and whether they can make LIC payments through credit cards. So, in this article, we will cover the ways in which one can pay the LIC premiums with a credit card, the benefits, and some important pointers to keep in mind while doing so. Continue reading to find out how to maximize your credit card use when paying premiums to LIC.
Before discussing how to do it, let's explore the benefits of using a credit card to pay an LIC premium.
1: Paying your LIC premium with a credit card does not require you to go into branch offices or use net banking, eliminating hassle.
2: You can complete the transaction with a mobile device or computer anytime and anywhere.
3: You can pay for multiple policies simultaneously and with great ease.
1: A lot of credit card companies reward you with points, cashback, or discount payments on healthcare servicing.
2: If you charge your LIC premium on your credit card, you will enjoy reward points, which can be later redeemed for shopping, travel, or even statement credits.
3: Some banks provide bonus points for payments of insurance and utilities.
1: With credit cards, you get an interest-free period, which is usually 30 to 50 days.
2: It can make financial management easier and allows one to postpone paying money out of their bank account at once.
3: If the moment when your premium is payable is in sync with your credit card's statement cycle, you can enjoy extra time to make the payment.
1: Using a credit card to auto-pay LIC premiums means you will never miss a payment.
2: This feature is useful in preventing late fees and policy lapses.
3: You can further reduce efforts by scheduling payments for several policies at once.
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1: Credit card payments linked to LICs are safe, minimizing the problems that come with carrying cash and writing cheques.
2: Numerous banks provide protection from fraud, so there is assurance that the request will be blocked if the transaction is deemed unauthorized.
3: For all these reasons, encrypted payment gateways are much safer than traditional payment methods.
1: Numerous banks permit LIC premiums and other expenses to be settled at once and paid later in several installments.
2: This lessens the strain tremendously since one does not have to worry about making large payments but smaller, manageable monthly ones instead.
3: Make sure to verify with the bank if payments for LICs are eligible for conversions.
1: Statements from credit cards explain expenses in detail, so knowing where the money goes is no problem.
2: This means that one can monitor their LIC payments and control the state of their finances.
3: Offers assistance in creating budgets since it tracks payments that are made regularly.
1: Credit card payments come with receipts, which are important for making tax and other financial decisions and offer efficient planning.
2: Some LIC policies do indeed fall under the taxable limits and section 80C of the Income Tax Act, so they offer some benefits.
The entire process of paying through a credit card for LIC payment is simple. Here's how you can do it:
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a. Open the official LIC website at www.licindia.in and log on to the site.
b. Click the 'Login’ button and provide the necessary details.
c. Select the ‘Pay Premium’ option.
d. Check which policy requires a payment and select it from the list.
e. Select the payment type' credit card' and provide the needed information.
f. Confirm the payment after entering the OTP received on your registered mobile phone.
a. Download the LIC Pay Direct app and install it.
b. Provide the details of your policy to log in.
c. Under 'Premium Payment,' select the 'Payment' option.
d. Select 'Credit card' as the payment mode and click 'continue.'
You also can pay premiums via third parties like Google Pay, Paytm, and PhonePe.
a. Go to the app and select 'LIC Premium Payment.'
b. Fill out your policy details and submit it.
c. Choose credit card as your chosen payment method, then click on confirm.
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a. You can also pay LIC through your bank via their net banking facilities.
b. Head to the netbanking portal of your bank and select LIC Premium Payment.
c. Use your credit card for the payment.
LIC does allow payment options via credit cards, but additional fees might be incurred based on the credit card provider and the payment gateway used. Here are some points to remember:
1: Depending on the transaction's value, certain payment processors and banks may add a 'convenience' charge between 1% and 2%.
2: The fee differs with each bank and payment processor.
3: Although some credit cards might provide cashback or reward points to defray this charge, as a general rule, most of them check the terms first prior to proceeding.
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1: If you choose to pay your LIC premiums in installments, additional charges will apply along with the interest and processing fees associated with the payment.
2: The interest on the EMI conversion ranges between 12% and 18% per annum, depending on the credit card provider.
3: Other banks charge a one-time processing fee to convert the amount into EMIs.
4: Make sure you review your bank's EMI plan terms before deciding.
1: Paying your credit card bill late can attract high monthly interest on the card.
2: In other words, failing to pay off your credit card balance will incur a monthly fee of up to 4%, which will hurt your finances.
3: Additionally, banks may impose late payment penalties ranging from ₹200 to ₹1200, depending upon the outstanding amount.
4: To avoid unnecessary fees, clear your dues within the due date.
1: Foreign exchange transaction fees may apply if you pay LIC premiums via an international credit card.
2: Depending on the card’s issuing bank, this usually ranges from 1.5% to 3.5% of the total amount.
3: Based on the card issuer, these charges usually fall between 1.5% and 3.5%.
4: Before an overseas transaction, it’s ideal to inquire with one’s bank about international transaction fees.
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Online transactions come with security concerns, so it's necessary to take the following precautions:
1: Use reliable payment applications or official LIC platforms at all times. Refrain from paying on unapproved websites or clicking on random links.
2: Don't use public Wi-Fi networks to make payments. Instead, use a secure network at home or work to prevent data theft.
3: Turn on email and SMS alerts for transactions. This will help you spot illegal transactions immediately.
4: Two-factor authentication (2FA) should be used. For extra security, ensure that OTP verification is required for all your credit card transactions.
5: Don't share your card information. Card information should never be sent via email or saved on public computers.
6: Examine your credit card statements regularly. Keep an eye on them and report any illegal or questionable charges.
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Paying through a credit card is very convenient. However, there are other methods to pay LIC premiums, such as:
Net Banking: Several banks directly pay LIC premiums through their Internet banking services. This is a reliable, quick, and cost-free method.
Debit Cards: Most banks" offer policyholders a more economical form of paying LIC premiums through debit card payments, incurring lesser payment charges.
Payments through UPI: Popular UPI applications such as Google Pay, PhonePe, and Paytm allow patrons to pay for LIC directly through these UPI applications with no additional costs and instant confirmations.
Auto-debit from Bank Account: You may arrange to have funds automatically taken from your bank account through a mandate set up with your bank, guaranteeing punctual payments without the risk of missing deadlines.
LIC branch offices: Those who wish to pay offline may pay premiums in cash, by cheque, or even demand drafts through LIC branch offices.
ECS: This enables periodic deduction of funds from your bank account, ensuring ongoing policy coverage without manual intervention.
By taking these steps and considering using other methods, the policyholders would be able to pay the LIC premiums without worrying about safety and convenience.
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Pros: Convenient and Rapid
Cons: Possible additional fees
Pros: Reward points and cashback can be earned
Cons: Severe interest penalties for payments made after the due date
Pros: Has the potential for automatic debit functions to prevent policy expiration
Cons: Policy premiums paid in installments carry higher fees
Pros: Active credit card benefits extend to better management of available cash.
Cons: Spending limits may adversely affect credit scores.
Pros: Anti-fraud measures shield transactions made over the internet
Cons: International bank cards may incur foreign currency transaction fees
When settling your LIC premium, paying by credit card is highly convenient, but it serves you best to look at the entire picture before proceeding. Being keenly aware of the whole spectrum helps you avoid extra costs and maximize the features available on your credit card.
Hold on! Check your license number and credit card first- do you have any transaction/inconvenience fees like those mentioned above? Payment processors and even banks may impose 1% to 2% of the total amount in transaction fees, which may prove detrimental when checked against the rewards or cashback earned. If your credit card has additional benefits that reward you through a higher cashback from the fee, then it's good to go. Just ensure always to run the calculations yourself.
Making payments like Life Insurance Corporation, haven't you- use this card for bigger payments and LIC premiums, and you are in for treats. For treats but not used for routinely done payments, this may help steer the credit usage ratio upwards. The more the credit score utility ratio increases, the more the credit score lowers. Aim at maintaining sub 30% percent usage of your gross permissional credit limit, coupled with paying off the amount not charged interest monthly, and you stand to lessen the interest fees ostensibly.
Most banks give you the option to convert your premium payment into EMIs. Even though this may look beneficial, EMIs also have interest and processing fees associated with them.
To utilize the interest-free period to its fullest extent, attempt to pay your LIC premium immediately after your credit card's billing cycle. This enables you to take the complete grace period (typically up to 45–50 days) to return the amount without incurring any interest.
Certain credit cards offer promotions or reward bonuses on utility bills or insurance payments. Before you pay, log on to your bank website or mobile app and look for current offers. Opting for the correct card will help you reap additional benefits such as additional cashback, reward points, or vouchers.
Missing your credit card payment due date after paying a LIC premium can result in high-interest charges and late fees. Automate or set reminders for your credit card payments to avoid penalties. Now that we've examined the things to consider before paying LIC premium via credit card let's examine some of the best credit cards that offer benefits for LIC premium payments.
Some credit cards offer extra advantages when paying LIC premiums. These are some of the best ones:
1: HDFC Bank Millennia Credit Card – Cashback on bill payments.
2: SBI SimplyCLICK Card – Rewards on online payments.
3: ICICI Amazon Pay Credit Card – No-cost EMI options.
4: Axis Bank ACE Credit Card – Flat cashback on utility payments.
5: Citi Rewards Credit Card – Bonus points on transactions.
Payment of your LIC premium via a credit card is a smart, easy, and convenient option for handling your finances, with the added advantage of cashback, reward points, easy EMIs, and auto payments. With various online payment modes, policyholders can make timely payments, thus not incurring any risk of policy lapse. However, being aware of possible transaction charges, interest payables, and security threats related to credit card payments is crucial.
If you have not yet tried this payment method, now is the time to take advantage of the convenience and rewards of credit card payments for your LIC premiums. Go to the official LIC website, use secure payment apps, and select a credit card that will give you the most rewards while incurring low costs. Switch over today and discover a convenient and rewarding way of paying your LIC premiums!
Some payment platforms charge a small fee, while others might offer cashback or other rewards. Talk to your bank or look at LIC's portal for more information.
Third-party applications accept LIC payments through credit cards.
If proper security, such as one-time passwords, is used, paying by credit card is safe, provided that the website or payment service used is secure.
Auto-debit can be enabled to make payments on time and avoid losing the policy.
Many reward points or cashback credit card offers accompany utility and insurance account bill payments.
LIC branch offices do not accept credit card payments. However, cash, cheques, and debit cards are accepted.
If you pay your dues and settle your credit card bills on time, your credit score will not be adversely affected. Responsible use of credit cards is likely to enhance your credit score.
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