When you purchase a life insurance policy, you are expected to make regular premium payments to your insurer as per the premium payment schedule. Policy buyers can usually choose to pay their premiums on an annual, bi-annual, quarterly, or monthly basis. However, certain life insurance providers also offer insurance policies, where the premium can be paid as a one-time lump sum amount.
Single premium insurance plans are an especially good choice for individuals who have a lump sum amount of money in-hand and are looking for a financial avenue to invest in. They are also ideal for individuals without a steady flow of income since they don’t have to go through the hassle of making repeated premium payments. A few other benefits of these policies are listed below:
Almost all leading life insurance providers offer at least a few single premium insurance plans within their product suite. Listed below are 5 single premium insurance policies that are offered by life insurance firms with the highest claim settlement ratio in FY16-17.
1. LIC’s Jeevan Akshay – VI Plan: The Jeevan Akshay – VI Plan from LIC is a non-linked, single premium payment, immediate annuity policy that provides annuity payments throughout the lifetime of the policyholder. This policy comes with various annuity options and annuity payment mode options.
2. Max Life Guaranteed Lifetime Income Plan: The Guaranteed Lifetime Income Plan is a non-participating, non-linked, immediate annuity plan that provides guaranteed income to the policyholder for their entire lifetime.
3. HDFC Life New Immediate Annuity Plan: The New Immediate Annuity Plan from HDFC Life is a traditional, non-linked, single premium, immediate annuity policy that provides you the means to live a comfortable life even after your retirement.
4. Aegon Life iReturn Insurance Plan: The iReturn Insurance Plan provides you a life cover for the duration of the policy tenure and also returns all premium paid back to you if you survive till maturity of the policy. Policy buyers can choose to pay the due premiums for five years, for the duration of the policy tenure, or as a one-time lump sum amount.
5. SBI Life – Smart Wealth Assure Plan: This is a non-participating, unit-linked, life insurance policy that can be purchased by paying a single premium. This policy offers financial security to the policyholder’s family, flexibility, and offers liquidity from the 6th policy year onwards. Further, these plans are also affordable.
The Bottom Line
While there are a plenty of single premium life insurance plans, across various product types, available in the market, you will need to do your due research, compare various plans, and opt for a policy that offers premium rates and coverage as per your needs.
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