Life Insurance Corporation of India (LIC), the country’s largest life insurer, has introduced a new fortnightly premium payment facility through mobile wallets such as MPaisa and MyCash.
This feature is aimed at making insurance more flexible and accessible, especially for people who do not have access to salary deduction facilities or prefer digital modes of payment.
Why This Move Matters
- Greater Flexibility for Policyholders
Until now, LIC premiums were mostly collected on a monthly, quarterly, half-yearly, or yearly basis. With this fortnightly option, policyholders can now spread their payments into smaller, more manageable installments. - Support for Informal Sector Workers
Many Indians working in the unorganized or informal sector get paid on a weekly or fortnightly basis. This new facility ensures that they can pay their premiums without financial strain. - Digital Push for Insurance
By integrating with mobile wallet services, LIC is tapping into India’s growing digital ecosystem. Platforms like MPaisa and MyCash provide seamless, secure, and instant transactions, even in areas with limited banking facilities.
How It Works
- Policyholders can choose fortnightly payment mode at the time of purchasing or renewing a policy.
- Payment can be done via authorized mobile wallets like MPaisa and MyCash.
- Customers will receive an SMS/e-mail confirmation after every successful transaction.
- Late payment penalties will not apply if the premium is paid within the scheduled window.
LIC Introduces Fortnightly Premium Payments
MPaisa & MyCash supported for easy payments.
Split premiums into smaller, budget-friendly payments.
Easier cash flow management for household budgets.
Reduces chance of policy lapses due to large payments.
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Benefits of Fortnightly Premium Payments
- Smaller, Budget-Friendly Payments – Instead of paying a big amount once a month or quarter, customers can split it into smaller sums every two weeks.
- Better Cash Flow Management – Especially useful for families with daily or weekly income cycles.
- Improved Policy Continuity – Reduced chances of policy lapses, since smaller payments are easier to maintain.
- Convenience of Digital Wallets – No need to visit LIC branches or agents; payments can be made on the go.
Expert Views
Insurance experts believe this step will help LIC reach a wider audience in semi-urban and rural areas. With UPI adoption at an all-time high and more Indians using mobile wallets, such initiatives can boost insurance penetration in India.
They also point out that fortnightly payments will encourage young policyholders and first-time buyers who may find monthly or quarterly premiums too heavy.
Why It’s Good for Indian Families
For a typical Indian household managing school fees, EMIs, groceries, and medical expenses, breaking down insurance premiums into fortnightly payments reduces stress. It ensures that protection remains affordable without affecting other household priorities.
LIC’s introduction of fortnightly mobile wallet premium payments is a strong move to align with India’s digital-first financial ecosystem. It makes insurance more flexible, affordable, and convenient, ensuring that no family has to drop their policy due to payment difficulties.
This innovation not only benefits customers but also strengthens LIC’s position as a customer-friendly insurer adapting to modern needs.
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