Quarterly : The premium has to be paid every 3 months in a policy year. Usually there are no rebates given for this mode of premium payment.
Half yearly: The premium amount has to be paid every 6 months of the policy year. Usually rebates are given to this kind of payment. However the rebate percentage varies according to the policy.
Yearly: This the most welcomed mode of payment by LIC of India. The highest rebate is given to this mode of payment since it eases the managing and accounting processes of the company for the particular policy holder.
Monthly: The policy premium has t be paid every month of the policy year. A 5% percentage of the premium amount has to be paid extra for this mode of premium. This is not the recommended form of premium payment since it increases the overhead for both the policy holder as well as the insurance company.
Salary savings scheme(SSS):
In this mode of premium payment the policy premium will be deducted from the salary of the policy holder every month automatically. The difference between monthly mode and this mode is that the extra premium has not to be paid in this mode of premium. For selecting this mode of premium the organization in which the policy holder is working should support this practice.
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- Changing the mode of premium payment
