In today’s uncertain life, having a life insurance plan is a must for every individual. A life insurance plan is the best way one can financially secure the future of their loved ones. Usually, life insurance plans come with a conventional mode of premium payment, i.e. monthly, half-yearly, quarterly and yearly. However, for the convenience of the insurance-seekers, many insurance companies offer single premium payment option.
This option is best suited for those individuals who do not want to opt for the conventional mode of premium payment. The single premium policies are more evolved process of premium payment in which the insured just needs to pay the entire premium at one go and can stay covered throughout the tenure of the policy. Besides this, one of the major advantages of a single premium policy is that it can result in substantial cost savings as compared to the regular method of premium payment. Here, we have illustrated the same in the tabular form.
|Policy Term||Regular Premium(Annual)||Single Premium||Savings|
5 Best Single Premium Policies in India
|Plans||Types||Entry Age||Policy Tenure||Premium|
|LIC Jeevan Vriddhi||Endowment Plan||Minimum-8 years
|Aviva Life Bond||ULIP||Minimum-18 years
|10 -73 years||50,000-no limits|
|India First Smart Save Plan||ULIP||Minimum-18 years
|15 years||45,000-no limits|
|HDFC Life Single Premium Pension Plan||Pension ULIP||Minimum-40 years
|ICICI Prudential iAssure Single Premium||Endowment||Minimum-8 years
|5 or 10 years||20,000-no limits|
LIC Jeevan Vriddhi
LIC Jeevan Vriddhi single premium policy is an endowment plan that offers guaranteed maturity benefit. As one of the best endowment policy, LIC single premium policies offers the dual-benefit of savings and insurance. The sum assured offered by the policy is 5-times the single premium paid. Some of the salient features of this LIC single premium policy are:
- This is a traditional endowment plan without bonus facility, which offers the death benefit and maturity benefit.
- The sum assured is paid as the death benefit to the beneficiary, in case of the demise of the insured.
- The maturity benefit is paid as guaranteed maturity sum assured plus loyalty addition(s).
- The tax benefit can be availed under section 80C of the Income Tax Act.
LIC Jeevan Shanti
This is another LIC single premium policy wherein the insured are offered the benefit to choose the deferred or immediate annuity. The plan comes with a 9 different options of annuity and guarantees lifelong income to the insured. Jeevan Shanti LIC single premium policy can be bought online and offline in a simple and hassle freeway. Let’s take a look at some of the benefits offered by Jeevan Shanti LIC single premium policy.
- The plan provides the option to choose either deferred annuity or immediate annuity.
- 9 different annuity options are offered by Jeevan Shanti LIC single premium policy.
- The policy provides loan facility after the completion of 1 year of policy.
- Guaranteed additions are applicable at the time of deferment period.
The plan provides tax benefit under section 80C of Income Tax Act 1961.
AVIVA Life Bond Advantage Plan
This is a unit-linked insurance single premium policy that offers the dual-benefit of investment and insurance. Under this policy, the death benefit is paid as the higher of the sum assured or fund value to the beneficiary. Let’s take a look at some of the salient features of this policy.
- At the maturity of the policy, the fund value is paid to the policyholder.
- In case of unfortunate demise of the insured person, the beneficiary of the policy receives a higher of the sum assured or fund value.
- The plan also offers inbuilt accidental death benefit rider.
- After the completion of 5 years, the plan offers the facility of systematic withdrawal.
- After the completion 10th year, the plan also offers the loyalty addition(s).
India First Smart Save Plan
This is a unit-linked insurance single premium policy that offers the combined benefit of insurance and investment. Under this policy, the death benefit is paid as the higher of the sum assured or fund value to the beneficiary of the policy. Some of the salient features of this policy are:
- The plan offers 5 funds investment option to choose from.
- The tax benefit is offered under section 80C of the Income Tax Act.
- On the maturity of the policy, the fund value is paid to the policyholder as per the investment option chosen.
HDFC Life Single Premium Pension Super
This is a deferred annuity single premium policy that offers 5 annuity options to choose from, i.e.
- Life annuity
- Joint life annuity
- Life annuity with return purchase price
- Life annuity with 15 years guarantee
- Life annuity return of balance purchase price
Some of the key features of the policy are:
- The tenure of the policy is 10 years.
- This is a single premium deferred annuity plan
- 101% of the single premium paid plus bonus (if any) or the fund value, whichever is higher, is accumulated as the maturity benefit and is paid as an annuity to the insured.
- In case of demise of the person insured, the beneficiary of the policy receives 101% of the single premium paid plus bonus (if any) or the fund value whichever is higher. The nominee can take the death benefit as a lump sum or as an annuity.
ICICI Prudential iAssure Single Premium Policy
This is traditional endowment without bonus single premium policy that offers the dual benefit of saving cum insurance to the insured. Under this plan, the insured just need to pay the premium of the policy as a lump sum and the policy continues for the tenure of 5-10 years. Some of the key features offered by the policy are:
- Along with the life cover, this plan offers guaranteed maturity benefit.
- In the event of the insured’s demise, higher of the sum assured amount guaranteed maturity bonus is paid to the nominee as the death benefit.
- In case the insured outlives the policy tenure of the policy, the maturity benefit stated at the time of policy purchase will be paid to the policyholder.
- The insured is also eligible for tax exemption up to a maximum of Rs.1,50,000 on the premium paid and maturity proceeds under section 80C and 10(10D) of Income Tax Act, 1961.
As single premium policy avoids the hassle of regular payments, these policies are best-suited for individuals who are lazy to make regular payments and can afford to make a one-time payment. These are some of the best single premium policies in India, which an individual can consider buying. However, before zeroing in on a policy, it is important to compare various plans online and check different aspects of each policy.