• A single premium plan is usually taken by those individuals who prefer to pay the entire amount of premium in a single premium because they want to get away from the monotonous way of paying a premium on a regular interval and also they want to enjoy the policy amount thereafter till their lifetime to boost their financial stability in order to compensate for the daily expenses. The main reasons to opt for this plan are as follows: • People are busy in their life and much of the time they don’t get time to pay their premiums on time so this plan comes in handy for them. • It is also convenient for those people who do not have a regular income. People who don’t want to follow a fixed schedule of paying premiums regularly
SINGLE PREMIUM PLANS
The single premium plan is described as a one-time premium paying plan in which a policyholder pays a premium at one go to receive the maturity amount and enjoy the money forever whereas in other traditional plans the premium is paid at regular intervals like monthly, quarterly, semi-annually, and annually..
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As the name suggests Single premium plan can be inferred. The single premium plans are those plans in which an individual chooses to pay the entire premium of the amount in one go. This plan is made for those individuals who prefer to pay the entire amount of premium instance rather than paying monthly, quarterly, half-yearly, and annually. There is an important reason why people opt for a single premium plan because this plan helps in providing extra savings on the premium at one go rather than paying on a regular period. In this plan, a policyholder can save up to 30% of the premium amount giving the individual a great boost in his savings and is released from the pressure of paying the premium on a regular interval, and on top of that, he or she enjoys maturity amount till the entire life.
How Single premium plan is different from other plans?
The single premium plan is described as a one-time premium paying plan in which a policyholder pays a premium at one go to receive the maturity amount and enjoy the money forever whereas in other traditional plans the premium is paid at regular intervals like monthly, quarterly, semi-annually, and annually. There is another major difference in single premium plans which is the cost of the premium which is lower than the traditional premium plans. The single plan is suitable for those who have a large amount of money with themselves for a single payment of premium and for a salaried person other traditional plans are more suitable because their premium frequency is based on a regular interval.
WHAT ARE THE BENEFITS PROVIDED IN A SINGLE PREMIUM PLAN?
- No worries to pay a regular premium on a specific date because it is a one-time premium payment method.
- It is comfortable for those who do not prefer to pay a regular premium and also who do not have continuous income.
- It is also beneficial for those people who travel a lot on a frequent basis.
- Exemption from tax on income under sections 80c and 10(10D).
F.A.Q
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WHY OPT FOR A SINGLE PREMIUM POLICY?
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WHAT IS THE MOST IMPORTANT FACTOR TO LOOK AT BEFORE BUYING A SINGLE PREMIUM PLAN?
Sum assured: The sum assured should be a feasible amount in the sense that it should pertain to the income of the individual so that the policyholder could bear the expenses of paying the premium for the assured amount.