Single Premium Term Life Insurance Plans in India: A Beginner’s Guide

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Nowadays, buying a policy has become one of the quintessential actions to take, Amid all the noises of paying hefty premiums on a recurring event might seem a little difficult. That’s where a single premium term plan comes into influence which allows you to pay your premiums in one go. 

It provides a betterment of saving taxes with one-time payment flexibility, saving lots of your efforts to remember a particular date of premium payment or a worry of lapsing the policy. 

What is Single Premium Term Life Insurance?

Single premium term insurance is a plan that requires a lump sum upfront amount from the policyholder in the assurance of getting a guaranteed death benefit for their future. 

A single premium term plan can save you lots of money and provide you with a backbone for building cash value. 

How does a Single Premium in Term Life Insurance work?

How a one-time term insurance plan’s premium works would be easy to understand with an example:-

Chetan, a 29-year-old man purchased a single premium term insurance which has a policy term of 10 years and he has opted for coverage of Rupees 10 lakh. He pays an amount of Rupees 1 lakh in the form of an upfront premium.

If Chetan dies without completing the policy term, the beneficiaries on his policy will receive rupees 10 lakh as a lump sum. But if he survives the policy tenure without any fail, he will receive the maturity benefit of his policy.

Is it good to pay a Term Insurance Single Premium?

Yes, though it’s not a mandate clause for every policyholder. But a single premium for a term life policy is a good option for those who want to avoid the hassle of making payments of premiums regularly. If you think you’ve enough amount to make a collective premium payment then it’s good to secure your policy in advance to get full coverage for life. 

What are the Benefits of Single Premium Term Insurance?

Single Premium Term Insurance is not only beneficial for getting full-time coverage for life, but it’s also a way to invest your money in a good place so that you can get a better return.

Here are some of the major benefits of a single premium term plan:- 

  • Can be an aid to those who have no steady income source
  • No hassle of paying recurring premiums every month or yearly
  • This plan has built-in futuristic options that increase your policy cover
  • You need not to worry about terminating your policy or facing a policy lapse
  • Policyholders who opt for one-time term insurance plan can also avail of tax benefits

Best Single Premium Term Life Insurance Plans in India 2023

There are several insurance-providing companies in India that offer one-time payment term insurance

  • ICICI Pru iProtect Smart Term Plan:- 

This plan provides the policyholder with the benefits of death, disabilities, and protection from more than 30 ailments, You can also add riders to the plan while enjoying the maximum benefits of the plan.

  • Bajaj Allianz Life Smart Protect Goal:-

This is a pure protection plan that has an optional return of premium against the maturity benefit payouts. It offers critical illness benefits to the policyholder. 

  • Canara HSBC OBC iSelect Smart360 Term Plan:-

You can avail of monthly income or just take a lump sum amount of your policy coverage under this plan. This plan covers an individual up to 99 years of age offering the tax benefits under sum assured return. 

Conclusion

Making the right decision about paying your policy premiums at one time is mandatory and much suggested. If you have ample financial support such that you can pay your premiums in one go, you can opt for a single premium term insurance plan. But if you have a fixed source of income and cannot afford a one-time payment premium term insurance plan, then you should choose a recurring premium payment option.  

Be smart to opt for the suitable option according to your requirements and the situation you’re in. Or you can consult from trusted advisors. Customer care executives at Policyx.com will save you from falling down the trap, give us a call to raise a query.

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