All You Need To Know About Term Plan Premium Payment Options

Term insurance policies are usually a protective financial cover that is valid for a particular term. It has been gaining a lot of popularity in recent times due to its enhanced affordability. One of the most important factors while choosing the best term plan online in India is looking at the available premium paying options. Deep down, everyone is aware of the unpredictability of life. No one likes to think about what will happen to their family when they are gone.

However, a term insurance plan could offer financial stability and reassurance to your loved ones during such pressing times. Your financial responsibilities may become a huge burden on your loved ones without a protective financial cover. Even if you have been extremely careful with your finances and have no outstanding debts, life insurance helps your dependents lead a financially stable life. However, paying the premiums may become a bit difficult. There are different premium payment options in a term insurance plan that you can choose from as per your financial circumstances.

Premium Payment Options Available in a Term Life Insurance Plan

Different term insurance plans have distinct payout options. Some plans like iSelect Smart360 Term Plan offer premium payout options as short as 5 years or 10 years. You also have the option to pay during your working years, i.e., till you are 60 years old.

There are multiple premium payment options, including a lump-sum premium payment for the entire term or making payment for a limited period of 5/10/15/20/25 years. Mentioned hereunder are 3 top premium payment options for a term insurance plan.

1. Regular Payment Option

This is the most opted method for making a premium payment for a term insurance plan. Various people choose it because it extends monthly, quarterly, half-yearly, and yearly options to pay for the premium. In simpler words, it can be stated that the regular payment option allows periodic payments.

There is an array of financial commitments in a person's life. Paying for term insurance may disturb the financial equilibrium by impacting your monthly budget, especially if you are a salaried person. However, it would be best if you are cautious regarding choosing the payment of the premiums.

As the cost of payment is spread over a long duration, there can be higher chances of non-repayment, and it can further lead to a lapse of the policy. Hence, you must always choose the premium duration that you are comfortable with to avoid such issues.

2. Limited Payment Option

Gone are those days when 'One-size-fits-all' used to work in term insurance plans. Term plan solutions are now being tailor-made and curated according to the demands of the growing population. In the present times, clients always look for goods and services that are personalized to their needs.

Limited payment option allows the policyholder to choose a specific period, let say, 5 years, 10 years, or more, for paying their premiums. As it has a shorter liability duration, the lapse of policy is less likely to occur.

Learn the difference between limited and regular premium payment.

3. Single-Premium Payment Option

If you are not willing to go for a long-term financial commitment, you can choose this single premium term insurance option. Single-Premium Payment Option is a one-time payment solution option for those who do not want any financial problems of recurrent payments.

Make the payment in one single shot and become the proud policyholder. This is possible only when you have a huge amount of money lying idle, which can be put to good use. Also, as you will be paying the premium upfront, there is no chance of your policy lapsing in case of non-repayments.

iSelect Smart360 Term Plan by Canara HSBC Life Insurance

iSelect Smart360 Term Plan by Canara HSBC Life Insurance is one of the most comprehensive term plans. It offers flexibility to increase life cover aligned with changing life stages.

Apart from affordability, it allows you to add your spouse to the same policy along with a discount on the rates for the spouse. Also, if you are an existing customer of the company, you are entitled to receive a loyalty discount.

In addition to this, you can customize this plan according to your requirements and benefit from the multiple payment options available. Hence, invest in this extensive-term plan today, but all these worries to rest and enjoy a financially protected and secured future.