Single Premium Life Insurance

1. Single Premium Life Insurance

2. 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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