With a growing focus on ease of transaction for the customers, the insurance industry has been innovating every day. They have been introducing innovative and flexible plan options for their customers, in a stride to leave a positive impact on the overall life insurance outreach in the country. Among the many options that policy buyers have today, single premium insurance plans have been gaining popularity.
A single premium insurance plan, as the name suggests, is a product that works on a one-time lump sum premium payment to offer life cover benefits in return. Therefore, this kind of plan saves you the effort of paying regular premiums for the coverage you need.
These insurance plans offer certain benefits over the regular premium payment insurance plan. First being that it saves you from the hassles of keeping a track of your regular premiums. Besides being convenient, such plans turn out more economical in the long run and the overall premium amount may be lesser.
Who must buy a single premium insurance plan?
A one-time premium plan or a single premium plan requires a large upfront payment. Therefore, it is ideally brought when you have a considerable amount of money collected for the purpose of your family’s safety. It could be worth for people who wish to achieve financial security but are not convinced on investing in market-linked products. So, in a nutshell, anybody who has surplus cash and are not confident committing to recurring premium payments for long durations, can buy a single premium insurance policy.
How do single premium insurance plans help?
iSelect Smart360 Term Plan is more than a regular term insurance plan, with a single bullet payment; you can customize the plan to your choices. You get a life cover with an in-built terminal illness cover, for no extra cost along with several benefits like payout options of your choice, spouse cover, accidental benefit and child benefit add-ons and much more.
In case you need more convincing, listed below are more benefits of a single premium plan:
1) Frees you from the worry of tracking and remembering to pay your monthly, quarterly or yearly premiums.
2) Helps you save on your overall premium amount.
3) Lower chances of a policy lapse, especially if you are a forgetful person and are a greater risk of forgetting your premium due date.
Also Read - Prepaid Insurance
What other options do you have?
Plans like iSelect Smart360 Term Plan offer multiple premium payment options including payment for a limited duration of 5/10/15/20/25 years, payment only during your working years i.e. till you turn 60, and payment throughout the Policy Term, besides the single bullet payment for entire term.
When you come to think of it, a term plan with single premium payment can have both advantages and disadvantages over a regular payment plan. However, both these payment modes offer similar benefits under a policy, so your actual decision should depend on the cash flow situation and your compatibility with the insurance provider. Though single payment plans are not often recommended for salaried individuals, it completely depends on you.
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