How to Pay LIC Premium Through Credit Card?

The Life Insurance Corporation of India (LIC) is one of the most trusted names in the insurance sector and continues to enjoy a lot of popularity, till this date. Thanks to various breakthroughs in the world of finance, paying your insurance premiums has become easy and convenient, more than ever before. 

However, what if someone wants to pay their insurance premiums with their credit cards? In this blog, we will give you a brief idea on how to complete your LIC premium payments with credit cards, whether it is a good idea to do so and more. Keep reading!

How do I pay my LIC premium with the credit card?

It is very easy to pay your LIC premiums with a credit card. Here is how you can do it:

1. Log in to the LIC website 

• Visit the official LIC website (www.licindia.in).
• If you are a registered user, log in with your credentials. If not, you will need to register by providing your policy details and creating a username and password.

1. Open the LIC premium payment section

• Once you have logged in, go to the ‘Online Services’ section.
• Next, click on ‘Pay Premium Online.’

1. Enter your details

• You will be required to input your policy number and the instalment premium amount.
• Verify the details to ensure accuracy.

1. Choose the payment method 

• Select credit card as your preferred payment method.
• You will be redirected to a secure payment gateway.

1. Complete your LIC premium payment

• Enter your credit card details, including card number, expiration date, CVV, and cardholder name.
• Follow instructions to complete the transaction.
• You will receive a confirmation message and an email once the payment is successful.

Read more: Test your financial fitness

What are the added benefits of paying LIC premium with a credit card?

Paying your LIC premium using a credit card offers numerous benefits. Here are some of them:

Adds to your convenience

Paying through a credit card is quick and easy, eliminating the need to visit LIC branches or banks. In addition, you can make payments from the comfort of your home or office, at any time, without being restricted to business hours.

Extra rewards and cashbacks

Most credit cards offer reward points or cashback on utility payments, including insurance premiums. This means you can earn points for every rupee spent, which can be redeemed for various benefits like gift vouchers, discounts, or even as a statement credit. Some credit cards provide additional cashback or bonus points during promotional periods, enhancing your savings.

Safer transactions with a credit card

Online payments through credit cards are secured by advanced encryption technologies, ensuring your financial information remains safe. You receive instant SMS and email alerts for every transaction, allowing you to monitor your account activity and detect any unauthorised transactions promptly.

Flexible payment

Many credit cards offer the option to convert large transactions into easy monthly instalments (EMIs). This feature is particularly useful if you have a high premium amount, as it helps in managing your finances better. In addition, credit cards typically offer an interest-free period of up to 50 days, depending on the billing cycle. This means you can defer the actual outflow of cash without incurring any interest charges.

Automatic payments with your credit card

Some credit cards allow you to set up an auto-debit facility for recurring payments. This ensures that your premiums are paid on time, avoiding any late payment charges or policy lapses.

Read more: 10 credit card hidden charges that you should know about

Things to remember when you pay insurance premium with credit card

While paying LIC premiums via credit card has numerous benefits, there are a few considerations to keep in mind:

Extra transactional charges can be levied

Some credit cards may levy a convenience fee for insurance premium payments. This fee can vary from 1% to 2.5% of the premium amount. It’s advisable to check with your card issuer about any additional charges before making the payment.

Paying premiums means more credit limit is used

Paying large premium amounts might lead to high credit utilisation, which can temporarily affect your credit score. It’s important to manage your credit card spending and keep the utilisation ratio below 30% of your credit limit.

Choosing the right credit card

Use a credit card that offers the maximum benefits for utility payments. Cards with high reward rates, low convenience fees, and attractive EMI options are ideal for paying LIC premiums. One such card is the Airtel Axis Bank Credit Card from Airtel Finance, which you can get from the Airtel Thanks app. 

Paying your LIC premium through a credit card is a smart choice that combines convenience with financial benefits. It simplifies the payment process, but beware of extra charges and the other factors that we have mentioned above. Start paying with your credit card wherever you go and unlock an entirely new world of benefits!