LIC Term Plan Calculator: Estimate Premium for 1 Crore Cover & Cover You Actually Need (2026)

Estimate your LIC term insurance premium for 1 crore or any sum assured by age, term, and payment mode — with the current 0% GST rule and the real High Sum Assured Rebate applied — or work out how much life cover you actually need.

₹50 Lakh ₹1 Crore ₹2 Crore ₹5 Crore
"5 years" here means paying premium for 5 years while cover continues full term

How to Use This LIC Term Plan Calculator

The Premium Calculator tab gives you an indicative LIC term insurance premium based on your age, gender, smoking status, sum assured, policy term, and how you want to pay — including the "5 years" limited premium payment option many people search for. The Cover Needed tab flips the question around: instead of pricing a cover amount you already have in mind, it estimates how much life cover you should actually be considering, using your income, debts, existing savings, and years of financial responsibility ahead of you — a genuinely useful starting point before you decide on a sum assured to price out in the first tab.

LIC's Current Term Insurance Plans

LIC sells pure protection (term) cover mainly through LIC's New Jeevan Amar (Plan 955, UIN 512N350V02) — the flagship flexible term plan offering both Level and Increasing Sum Assured options, entry ages 18-65, policy terms of 10-40 years, and a minimum sum assured of ₹25 lakh — alongside LIC Digi Term, a fully digital-purchase term plan, and LIC Saral Jeevan Bima, the simple, standardised term plan that IRDAI requires every life insurer to offer with common features across companies, making it easy to compare against other insurers' standard plans. This calculator's premium model is built around New Jeevan Amar-style pricing, LIC's primary flexible term offering.

How LIC Term Insurance Premium Is Actually Calculated

Six factors drive your premium, and this calculator applies all of them:

  • Age: the single biggest factor — premium rises with age because mortality risk rises with age, and the increase accelerates rather than staying linear as you get into your 40s and 50s.
  • Gender: women are typically charged a modestly lower premium than men of the same age, reflecting statistically longer life expectancy.
  • Smoking/tobacco use: smokers pay a significantly higher premium — commonly 50-60% more — due to elevated mortality risk.
  • Sum assured, via the High Sum Assured Rebate: LIC discounts the per-lakh rate as your cover amount increases. For New Jeevan Amar, this rebate is roughly 13% for ₹50 lakh-₹1 crore and roughly 25% for ₹1 crore and above at entry ages up to 30, tapering to smaller rebates (around 11%/21% for ages 31-50, and 6%/11% for ages 51+). Nothing below ₹50 lakh gets a rebate.
  • Policy term: a longer term generally costs slightly more per lakh, since the insurer is on the hook for a longer period.
  • Premium payment mode: paying over a shorter "limited pay" period (like 5 or 10 years) while keeping the full cover term means each individual premium is higher, since you're compressing the same total risk cost into fewer payments — LIC's own sample rates show roughly 15% more per instalment for a 5-year limited pay and roughly 48% more for a 10-year limited pay, versus paying across the full regular term.

Is There Really an "LIC Term Plan for 5 Years"?

This is worth clarifying directly, since it's a commonly searched phrase. LIC's term plans, including New Jeevan Amar, require a minimum policy term of 10 years — so a genuine 5-year term policy (5 years of cover, then done) generally isn't something LIC sells. What does exist, and is very likely what most people mean by "LIC term plan calculator for 5 years," is the Limited Premium Payment Term option: you can choose to pay your premiums for just 5 years, while your actual life cover continues for the full policy term you select (say, 20 or 25 years). This calculator's "Limited Pay — 5 Years Only" option models exactly this.

What Does 1 Crore LIC Term Insurance Actually Cost?

There's no single correct number — it depends entirely on your age, gender, smoking status, and term — which is exactly why a calculator is more useful than a single quoted figure you might see in an ad. As a general shape: a healthy non-smoker buying ₹1 crore cover in their late twenties, for a 20-25 year term, tends to land in a noticeably lower premium band than someone in their forties buying the same cover for the same term, often by a factor of two or more, purely because of the age-based mortality curve. Enter your own details in the Premium Calculator tab above for a personalised indicative figure rather than relying on a generic "starting from ₹X" number you might see quoted elsewhere.

GST on LIC Term Insurance: Now Zero

Tax Benefits on LIC Term Insurance

Premiums paid on a term policy covering yourself, your spouse, or your children qualify for a deduction under Section 80C of the Income Tax Act, within the overall ₹1.5 lakh annual 80C ceiling — this benefit is only available if you're filing under the old tax regime, since the new regime doesn't allow most 80C deductions. The death benefit paid to your nominee is generally tax-free under Section 10(10D), provided the annual premium doesn't exceed prescribed limits relative to the sum assured — for a pure term plan with no maturity/survival benefit, this condition is almost never a practical concern.

How Much Term Cover Do You Actually Need?

A widely used starting point is the Human Life Value (HLV) approach: broadly, 15-20 times your annual income, plus outstanding loans and liabilities your family would otherwise have to repay, minus your existing life cover and savings already earmarked for dependents. The Cover Needed tab above runs a version of this calculation using your income, liabilities, existing cover, and the number of years your dependents would need financial support — treat its output as a sensible starting range to discuss with an insurer or adviser, not a precise, final number.

LIC vs Private Term Insurers: An Honest Comparison

Claim settlement: LIC's claim settlement ratio has consistently been strong, around 98.55% in recent reporting — among the highest in the industry, backed by decades of scale and sovereign-linked trust.

Premium cost: LIC term premiums are often somewhat higher than several private insurers (such as HDFC Life, ICICI Prudential, Max Life, or digital-first insurers) for comparable cover, particularly at younger ages where private insurers compete aggressively on price.

Riders and flexibility: Private insurers generally offer a wider range of riders (critical illness, accidental disability, waiver of premium) and more flexible online-first buying journeys than LIC's traditional plans.

Neither is a universally "correct" choice — it depends on how you weigh LIC's brand trust and extensive branch network against the potentially lower premiums and richer features available elsewhere. Comparing an actual LIC quote against 2-3 private insurer quotes for the same cover is worth the extra half hour before you commit.

Eligibility & Underwriting

For LIC's New Jeevan Amar, entry age ranges from 18 to 65 years (last birthday), with cover permitted up to a maximum maturity age of 80 years — meaning your maximum available policy term shrinks the older you are when you apply. Higher sum assured amounts typically require medical tests as part of underwriting, and LIC may apply extra premium loading based on your health, occupation, income proof, and family medical history — all of which sit outside what any online calculator, including this one, can account for.

Common Mistakes to Avoid

  • Buying too little cover because a low premium "sounds affordable," without actually calculating what your family would need (see the Cover Needed tab).
  • Not disclosing smoking or tobacco use accurately on the proposal form — this can lead to a claim being rejected later, which defeats the entire purpose of the policy.
  • Delaying the purchase — since premium rises with age, waiting five or ten years to "save up" for a bigger policy often costs more in the long run than buying adequate cover earlier.
  • Comparing only the premium number across insurers without checking claim settlement ratio, rider availability, and policy wording.
  • Assuming a 5-year "LIC term plan" means 5 years of cover, when it more likely refers to a 5-year premium payment term with much longer actual coverage.

Is LIC Regulated by IRDAI, SEBI, or RBI?

LIC and every life insurance product it sells, including all term plans, are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) — not SEBI, which regulates securities, mutual funds and stockbrokers, and not the RBI, which regulates banks and NBFCs. Every LIC plan carries a unique IRDAI-issued UIN (Unique Identification Number), and IRDAI sets the rules around claims processing, mandatory disclosures, and policyholder grievance redressal that LIC must follow.

Building a Complete Financial Protection Plan

Term insurance is the foundation of financial protection, but it works best alongside a real investment and savings plan. For long-term wealth building, see the SIP Calculator and the Bitcoin SIP Calculator India. If you're planning retirement withdrawals, the SWP Calculator with Inflation India models a systematic withdrawal plan against inflation. To check what return any investment actually needs to deliver, use the Reverse CAGR Calculator, and for safer, guaranteed instruments, compare the Kisan Vikas Patra (KVP) Calculator and the Gold vs Inflation Hedge Calculator. If you invest in individual stocks, the Stock Average Down Calculator and the Universal Brokerage Calculator India round out your trading-cost planning.

Author & Disclaimer

Invest Know
Invest Know Editorial Team
Financial calculators and guides built for Indian investors. Read more on our About Us page.
This calculator provides an educational, indicative estimate only — it is not an official LIC premium quote, and Invest Know is not affiliated with LIC or any insurer. Your actual premium depends on LIC's official rate card at the time of purchase, medical underwriting, occupation, income, family medical history, and any loadings LIC applies after reviewing your proposal. GST, tax rules, and rebate percentages reflect publicly available information as of September 2026 and are subject to change. Please obtain an official quotation from LIC's branch, a licensed agent, or licindia.in, and consult a qualified insurance adviser and chartered accountant, before purchasing any policy or relying on this for tax planning.

Frequently Asked Questions

How much does a 1 crore LIC term insurance premium cost?▾
It depends heavily on your age, gender, smoking status, and chosen policy term. As a rough indicative range, a healthy non-smoker in their late twenties to early thirties can expect an LIC term plan for 1 crore cover to cost somewhere in the ballpark of ₹12,000 to ₹20,000 a year for a 20-25 year term, though LIC's actual quoted premium after underwriting can differ from any online estimate. Use this calculator's Premium Calculator tab for a personalised indicative figure.
Does LIC offer a 5-year term insurance plan?▾
Not quite — LIC's main term plans, such as New Jeevan Amar, require a minimum policy term of 10 years, so a pure 5-year term policy generally isn't available. What LIC does offer is a 'Limited Premium Payment Term' option, where you can choose to pay premiums for just 5 years (or 10 years) while your life cover continues for the full policy term, such as 20 or 30 years. If you searched for an 'LIC term plan calculator for 5 years,' you likely mean this 5-year premium payment option, which this calculator supports.
Is there GST on LIC term insurance premium in 2026?▾
No. Effective 22 September 2025, the GST Council exempted all individual life insurance policies, including term insurance, from GST. Before this, term insurance premiums carried 18% GST. This calculator reflects the current 0% GST rate, so the premium shown is the actual amount payable, with no tax added on top.
What is the High Sum Assured Rebate in LIC term plans?▾
LIC offers a discount on the per-lakh premium rate for higher sum assured amounts, known as the High Sum Assured Rebate. For LIC's New Jeevan Amar plan, this rebate is roughly 13% for cover between ₹50 lakh and just under ₹1 crore, and roughly 25% for ₹1 crore and above, for entry ages up to 30 (the rebate percentage is lower at older entry ages). No rebate applies below ₹50 lakh sum assured. This is why the per-lakh cost of a 1 crore policy is meaningfully cheaper than the per-lakh cost of a 50 lakh policy from the same insurer.
Is a term insurance premium calculator's result the same as LIC's actual quote?▾
No. Any online term insurance calculator, including this one, gives an indicative estimate based on typical rate patterns. Your actual LIC premium depends on medical underwriting, your exact date of birth, occupation, income, family medical history, and any additional loadings LIC applies after reviewing your proposal form. Always get an official quote from LIC's branch, agent, or licindia.in before making a decision.
Is LIC term insurance premium eligible for tax deduction?▾
Yes. Premiums paid for a term insurance policy on your own life, spouse, or children qualify for a deduction under Section 80C of the Income Tax Act, within the overall ₹1.5 lakh annual 80C limit (only under the old tax regime). The death benefit paid to your nominee is generally tax-free under Section 10(10D), subject to conditions on the premium-to-sum-assured ratio.
How much term insurance cover do I actually need?▾
A commonly used starting point is the Human Life Value method: roughly 15-20 times your annual income, plus any outstanding loans or liabilities, minus existing life cover and savings earmarked for dependents. This calculator's Cover Needed tab estimates this for you based on your income, liabilities, and dependents.
Is LIC term insurance better than private insurers?▾
LIC has a strong claim settlement ratio (around 98.55% in recent data) and the trust of India's largest and oldest life insurer with sovereign-linked credibility, but its term plan premiums are often somewhat higher than several private insurers for the same cover, and its rider options tend to be more limited. Neither is universally 'better' — it depends on how much you weigh brand trust and service network against a potentially lower premium and richer rider choices elsewhere.
What is the maximum age to buy an LIC term plan?▾
For LIC's New Jeevan Amar plan, the maximum entry age is 65 years (last birthday), with cover permitted up to a maximum maturity age of 80 years, so the policy term you can choose shrinks as your entry age increases.
Do smokers pay a higher LIC term insurance premium?▾
Yes. LIC, like all insurers, charges a higher premium to tobacco or nicotine users because of the increased mortality risk, typically loading the premium by roughly 50-60% or more compared to a non-smoker of the same age and profile. This calculator applies an indicative smoker loading when you select 'smoker' in the calculator.
Is LIC regulated by IRDAI, SEBI, or RBI?▾
LIC and all life insurance products, including term plans, are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) — not SEBI, which regulates securities and mutual funds, and not the RBI, which regulates banks. IRDAI approves every LIC plan (each carrying a unique UIN) and sets rules for claims, disclosures, and policyholder protection.
Does increasing sum assured cost more than level sum assured in a term plan?▾
Yes. An 'Increasing Sum Assured' option, where your cover amount grows each year (helping keep pace with inflation and rising responsibilities), typically costs roughly 25-30% more in premium than a 'Level Sum Assured' option with the same starting cover, since the insurer is pricing in a larger average payout over the policy term.

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