Single Premium Life Insurance

There are two well known single premium policies that offer distinctive investment options.

Single premium life insurance. In other words it becomes paid up after one premium payment with nothing else to pay for the rest of the insured s life. For example if a 40 year old male in good health can get a 30 year term life insurance for an annual premium of 980. This single premium whole life insurance policy provides lifetime protection with only one premium payment. Here we look at some of the.

Single premium life insurance is also known as paid up insurance or single pay life insurance. Lifebond is a very flexible single premium ulip with one of the widest bracket for the policy term. The premium starts with rs 50 000 with no maximum limits. Single premium life spl is insurance in which a policyholder pays a lump sum of money upfront in exchange for a guaranteed death benefit.

A few of the insurance carriers accept advance single premium for a term life insurance plan. No additional payments will ever be required. The sum assured is 5 times the premium hence the insured becomes eligible for the tax benefits under the new irda guidelines. The policy by nature requires that the holder has.

Despite how convenient it sounds single premium whole life or spl may be one of the most overlooked misunderstood and hence rarely recommended forms of life insurance available today. Single premium life spl is a type of insurance in which a lump sum of money is paid into the policy in return for a death benefit that is guaranteed until you die. This differs from other life policies such as whole life insurance where premiums can be paid on a monthly or annual basis. Once you ve purchased a single premium policy you would receive a permanent death benefit that extends until you die.

Single premium whole life pays a fixed interest rate depending on the insurer s investment experiences and existing economic circumstances. When you purchase a paid up life insurance policy you pay a certain amount of cash up front to the insurance company to secure that your life insurance beneficiaries will receive a certain death benefit payment when you die. The cumulative premium of 30 years will be 29 400. By doing so the insured ends up with substantial premium savings.