Buy new LIC policy, pay by credit card or UPI and save tax

Click to Buy new LIC Policy 

Buy a new LIC policy, pay by credit card or UPI and save tax online. In the era of digitalization, purchasing insurance policies has become incredibly convenient and secure. The Life Insurance Corporation of India (LIC) offers a range of policies that can be bought online, providing not only ease of access but also numerous benefits, including tax savings under Sections 80C and 80D of the Income Tax Act. This article provides a detailed guide on how to buy new LIC policies online, the safety and security of the online purchase process, payment options including credit cards and UPI, and the associated tax benefits. For personalized assistance, you can contact Shivakumar at 9886568000.

Why Buy LIC Policies Online?

Buying LIC policies online offers several significant advantages:

1. Convenience: Purchase policies from the comfort of your home at any time without needing to visit an LIC office.
2. Time-Saving: The online process is quick and efficient, reducing the need for lengthy paperwork.
3. Transparency: Access all policy details, terms, and conditions online, ensuring complete clarity before making a purchase.
4. Instant Policy Issuance: Policies are issued promptly once the online application and payment are completed.
5. Secure Transactions: The online payment process is secure, protecting your financial information.

How to Buy LIC Policies Online

Here’s a step-by-step guide to buying LIC policies online:

1. Visit the LIC Website: Go to the official LIC website (www.licindia.in) and navigate to the ‘Online Services’ section.
2. Select a Policy: Browse through the available policies and select one that meets your financial goals and requirements. You can compare different policies based on features, benefits, and premiums.
3. Fill in the Application Form: Complete the online application form with your personal details, nominee information, and other necessary details.
4. Calculate the Premium: Use the online premium calculator to estimate the premium based on the policy term, sum assured, and other factors.
5. Upload Documents: Submit required documents such as proof of identity, address, and income online.
6. Make Payment: Choose your preferred payment method, such as credit card or UPI, and complete the transaction.
7. Receive Policy Document: After successful payment, the policy document will be generated and sent to your registered email address.

Payment Options: Credit Card and UPI

Using credit cards and UPI (Unified Payments Interface) to pay for LIC policies offers several benefits:

1. Credit Card:
   • Ease of Payment: Credit cards provide a hassle-free and quick way to make payments.
   • Rewards and Cashback: Many credit cards offer rewards points, cashback, or other incentives for transactions, adding value to your payment.
   • Flexibility: Credit cards allow for easy management of cash flow by offering flexible payment options and EMI facilities.
2. UPI:
   • Instant Payment: UPI allows instant transfer of funds directly from your bank account to LIC, ensuring timely payment.
   • No Transaction Fees: Most UPI transactions do not incur additional fees, making it a cost-effective payment method.
   • Security: UPI transactions are highly secure, utilizing two-factor authentication for added safety.

To make a payment using a credit card or UPI:

• Select Payment Method: When making a payment on the LIC website, choose either the credit card or UPI option.
• Enter Details: Provide the necessary payment details (credit card number, expiry date, CVV for credit cards, or UPI ID for UPI payments).
• Authenticate Payment: Complete the payment process by entering the OTP or PIN as required by your bank.

Tax Benefits Under Section 80C and 80D

Investing in LIC policies not only provides financial protection but also offers significant tax benefits under the Income Tax Act.

1. Section 80C:
   • Eligibility: Premiums paid for life insurance policies are eligible for deduction under Section 80C.
   • Limit: The maximum deduction allowed under Section 80C is ₹1,50,000 per financial year.
   • Policies Covered: This includes life insurance policies for self, spouse, and children.
   • Conditions: To claim this benefit, the policy must be active for at least two years from the date of commencement. If the policy is surrendered or discontinued within this period, the tax benefits availed will be reversed.
2. Section 80D:
   • Eligibility: Premiums paid for health insurance policies, including riders and critical illness covers, are eligible for deduction under Section 80D.
   • Limit: The maximum deduction allowed under Section 80D is ₹25,000 per financial year for individuals below 60 years and ₹50,000 for senior citizens. An additional deduction of ₹25,000 (or ₹50,000 for senior citizens) is available for policies covering parents.
   • Policies Covered: This includes health insurance policies for self, spouse, dependent children, and parents.
   • Conditions: Payments must be made through non-cash modes like credit cards or UPI to avail of the deduction.

Example Scenarios

Consider an individual who buys an LIC life insurance policy for ₹1,00,000 and a health insurance policy for ₹30,000. The tax benefits can be summarized as:

• Under Section 80C: The premium of ₹1,00,000 is eligible for deduction, reducing the taxable income.
• Under Section 80D: The health insurance premium of ₹30,000 is eligible for deduction, providing further tax savings.

Frequently Asked Questions (FAQ)

Q1: Can NRIs purchase LIC policies online? A1: Yes, NRIs can purchase LIC policies online through the official website. They must provide the necessary documentation and comply with FEMA regulations.

Q2: What if I miss a premium payment? A2: LIC policies typically have a grace period for premium payments. If you miss a payment, you can pay within this period without penalty. Continuous non-payment may lead to policy lapse.

Q3: Are there any charges for paying via credit card or UPI? A3: Some banks may levy a nominal fee for credit card transactions. Check with your card issuer for specific details. UPI transactions usually do not incur additional fees.

Q4: How do I claim tax benefits? A4: Tax benefits can be claimed while filing your income tax return. Retain receipts and policy documents as proof of investment.

Q5: Is online purchase safe? A5: Yes, buying LIC policies online through the official website is safe and secure. Ensure you are on the correct website and use secure payment methods.

Contact for Assistance

For personalized assistance with purchasing LIC policies, you can contact Shivakumar at 9886568000. Shivakumar can provide guidance on choosing the right policy, completing the online purchase process, and understanding the tax benefits.

Conclusion

Buying LIC insurance policies online is a convenient, secure, and efficient way to ensure financial protection while enjoying tax benefits under Sections 80C and 80D of the Income Tax Act. The ability to pay via credit card or UPI adds flexibility and additional rewards, making the process even more attractive. By choosing LIC’s reliable and government-backed policies, investors can secure their future and achieve their financial goals with confidence. For more detailed information, visit the LIC official website and explore the various policy options available.

Embrace the advantages of digital insurance transactions and safeguard your financial future with the trusted name of LIC.