Single Premium Life Insurance - PowerPoint PPT Presentation

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Single Premium Life Insurance

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A single premium policy is one in which a lumpsum amount can be paid instead of monthly, quarterly payments. learn more about these policies to make an informed decision. – PowerPoint PPT presentation

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Title: Single Premium Life Insurance


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Single Premium Life Insurance
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What is Single Premium Life Insurance ?
  • A single premium life insurance is one in which a
    lump sum amount can be paid instead of monthly,
    quarterly or yearly payments. This makes it an
    attractive option for many people.
  • But still, awareness is low when it comes to life
    insurance. In fact, many people do not even know
    that there are choices available when it comes to
    premium frequency as well. There are generally
    two options, regular premium and single premium
    insurance policy.

3
Here are some pointers that you should know for
making an important decision
  • 1. Cost
  • Cost is the first consideration before making any
    purchases. Single premium insurance may be more
    expensive in terms of price. despite the fact
    that it might not appear that way at first. For
    instance, you choose to purchase a policy of
    insurance that promises an amount of 2,000,000.
    You must pay this insurance policy 10,000 each
    year for 15 years. This implies that your final
    cost would be 1,50,000 in total.
  • 2. Convenience
  • When it comes to convenience, the single premium
    policy has an edge. You are not required to keep
    track of ongoing payments with these rules. For
    individuals who are concerned about forgetting to
    make a payment or the policy expiring, this makes
    it one of the finest solutions.
  • 3. Risk Factor
  • In general, life insurance is a long-term
    product. This indicates that it has existed for
    at least ten years. The risk is diminished in the
    event that you invested in a market-linked
    insurance policy thanks to rupee cost averaging.
    On the other hand, a single premium policy may
    expose you to greater market risk.
  • 4. Tax Benefits
  • Under Section 80C of the Income Tax Act, you
    would receive tax benefits of up to 1.5 lakhs
    regardless of whether you choose a regular
    insurance or a single payment one. With a single
    premium insurance, you receive the benefits all
    at once, but with a standard plan, they are
    dispersed throughout the course of the policy.

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