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.

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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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Thank You