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It is important to strategies your financial requirements by investing in funds which can help you reap benefits later in life. One such best strategy is to buy a Single Premium Term Life Insurance policy. Let’s take a look at the Single Premium Term Life Insurance rates and other details in this post.
Single premium term life insurance is a type of life insurance policy where the policyholder pays the entire premium in a single lump sum payment. This is in contrast to traditional term life insurance policies, where the policyholder typically pays the premium in regular, recurring payments (e.g., monthly, annually).
The main advantage of single premium term life insurance is that it can provide life insurance coverage for a longer term than traditional term life insurance, while requiring only a single premium payment. This can be an attractive option for individuals who want to ensure that their loved ones are financially protected in the event of their death, but who may not want to make ongoing premium payments.
However, it’s important to note that single premium term life insurance policies typically have higher premiums than traditional term life insurance policies. This is because the insurer is receiving a larger premium payment up front, which helps to offset the risk of providing coverage for a longer term. Additionally, the policyholder may not have the flexibility to make changes to their coverage or renew their policy at the end of the term, which is another factor to consider when deciding whether this type of policy is right for you.
In simple words Single Premium Term Life Insurance policy is a term plan that covers the policyholder and his/her family. When you purchase a term plan, you get the assurance from your insurer that your family or nominee would get a particular sum assured as death benefit in case of your sudden death within the policy tenure. In return, you have to pay a premium for the plan which can be paid on a monthly, quarterly, semi-annually or on an annual basis. However, in the case of a single premium term insurance policy, it allows the insured to make the entire payment of the premium in one go as a single amount.
Here are some key benefits of term life insurance plans available with one premium:
Below are some of the single premium term life insurance policies that are offered by insurers in India:
|Plan Name||Eligibility||Policy Term in years||Features|
|LIC’s Single Premium Endowment Plan||90 days to 65 years||10 – 25 years||Offers guaranteed returns with bonus|
|ICICI Prudential iProtect Smart Term Policy||25 years to 40 years||30 years (or till 99 years of the policyholder)||Allow the option to buy with MWP Act|
|Bajaj Allianz Life Smart Protect Goal||18 years to 65 years||till the age of 99 of policyholder||Cover major and minor critical diseases|
|HDFC Life Click 2 Invest ULIP||30 days to 65 years||5 to 20 years||Allow maturity benefit in 2 options – benefit option and fund option|
LIC being the most trusted brands in insurance business, offers one of the best single premium term insurance policies. The LIC Single Premium Endowment Plan is a remarkable investment option that allows the insured to pay the premium in one go for the complete duration of the policy.
Here are some of the benefits of the plan:
For young professionals with dependents at home, it is best to opt for this single term insurance plan. This plan covers the insured completely against 34 terminal and critical illnesses including AIDS.
The insured is given the choice to avail death benefit as per their wish
You get tax benefits for the single premium paid towards policy as well as for the maturity received as death benefit
Further, you can get the policy with the option of MWP Act or Married Women’s Property Act by buying it online.
This is a pure term life insurance plan that offer wide coverage on various variants to choose from, such as:
Also, the policyholder can opt for return of premium benefit as a payback option to receive maturity benefit. The insured can also choose added coverage in the form of critical illness rider as well as rider against accidental disability for both partial and complete disability. Further, plans can be chosen that allow coverage till the insured turns 99 years of age.
A renowned ULIP policy, Click 2 Invest is crafted to allow maximum benefits to the insured along with the death benefits and maturity benefit. The policyholder under this plan gets maturity benefits at the end of the tenure which is 105 percent of the maturity benefit along with extra bonuses. The policy has a lock-in period of 5-years. Once that gets over, it allows the insured to withdraw partial money if required.
A SP term life insurance plan can be purchased and availed by anyone. This plan is good for people who are into such professions where they do not have a consistent revenue or income. Under this plan, you can make the payment of the premium once and stay relaxed with the surety to avail the benefits over time. And that too without worrying about any further premium payment issues. To evaluate or calculate the fund received under this plan, you can use the single premium term life insurance calculator. This way, you can evaluate the premium amount that you need to pay as well as the maturity amount received under the single premium term life insurance plan.
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Single premium life insurance plan is a good option for people who have access to a surplus amount of money and they want to put that into good use. So, if you have enough money and you are not sure about the premium payments on a regular basis, a single premium term insurance would be perfect for you.
Under single-premium life insurance, the insured is required to pay a single lump sum amount of money in one go to receive guaranteed death benefit in return. Thus, this policy requires that insured pay a large amount of money as a single payment, which may not be feasible for many.
Under a single premium life insurance policy, the insured makes the payment of the policy as a single lump sum amount as compared to paying on a monthly, quarterly or annual basis. Once the lump sum payment is made, the policy stays active throughout the policy term and the beneficiaries can get death benefit in case of sudden demise of the policyholder during the term of the plan.
Single premium term insurance policies cannot lapse because the premium of the policy is paid in full in the first go itself while buying the plan. So, the policyholder doesn’t have to worry about getting the policy lapsed or about missing out on premium payment.
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