If you have sold your house recently or have received a handsome amount of money after a business deal, you can invest in a single premium insurance policy. A lot of individuals, who have spare money or reasonable savings, prefer this option over policies where premiums have to be paid at regular intervals. Also known as one-time investment plan, a single premium policy is a scheme in which a lump sum of cash is paid up front by the insured individual to cover the life. After the onetime payment to the insurer, the policy remains valid for five or ten years or as per the terms and conditions implemented by the company.
Why is it Important to Consider Single Premium Insurance Plan?
The single premium insurance plan comes with an array of benefits for the insured individual. The very first plus point of this form of life insurance is that the premium paid once is less when compared to the sum of premiums paid on regular intervals, thereby making it a wise investment. This is like buying insurance in cash instead of installments, where the total sum of EMIs is more than one time payment.
Another perk is that you don’t have to remember the due date of premium payment. This means the policy will not lapse in case you are unable to pay the premium. With a single premium plan, you only need to pay the premium once on commencement of the policy, so no need to worry about delay in premium payments.
It is suitable for those individuals who are not having a stable source of income. They don’t have to worry about the next installment of the premium. If we talk about the tax benefits, you receive an exemption of 1.5 lakhs after investing in this scheme. One thing is to be noted here that you get tax benefits only for the first year, unlike the regular premium policies in which tax benefit is received each year.
Best Single Premium Plans to Invest
There are numerous life insurance companies offering single premium plans for their customers. We have singled out best amongst all the available options.
1. Bajaj Allianz Fortune Gain Plan
Bajaj Allianz Fortune Gain Plan is an endowment plan lets the individuals switch the funds systematically for better investments. The minimum eligible age for this plan is one year, which means an individual can also use it to secure the future of his/her child. The minimum amount of the single premium is Rs. 50000, whereas there is no maximum limit related to it.
2. Bharti AXA Life Future Invest Plan
Bharti AXA Life Future Invest Plan is investment cum insurance plans allow the individuals to switch the funds up to 12 times without paying any additional charges. The individual is not charged premium allocation charge in the policy. After the completion of five years, the individuals are eligible for partial withdrawals. The benefit period for the policy is ten years, and it also allows the individuals to the pay the premium on installment basis for five years.
3. Aviva Life Bond Advantage Plan
Aviva Life Bond Advantage Plan is a single premium unit linked insurance plan that allows the individual to invest a lump sum amount for medium to long term. This plan provides you the flexibility to access the money after five years, along with life cover. The investor receives the benefit of loyalty additions if she/he stays invested in the plan for more than 10 years. Partial withdrawals are also available in which the individual doesn’t have to surrender the policy. You can also take fund value as maturity benefit.
4. Future Generali Bima Gain Plan
Future Generali Bima Gain Plan is a single payment allows the investors to get life cover and enjoy wealth creation. Some of the funds associated with the policy allow investing in equities and interest securities. This ensures that the individual enjoys stability, as well as capital growth. The age of the insured individual should be between seven years to 65 years while enrolling in it.
5. ICICI Pru Elite Wealth II Plan
In ICICI Pru Elite Wealth II Plan the investor can either manage his/her money as per the risk appetite or can take the support of experts to handle the money. There is feature called ‘Wealth Boosters’ through which savings can be increased without any extra investments. The policy’s aim is to help the investors handle the inflation and secure the future of the loved ones.
6. Aegon Life iMaximize Single Premium Insurance Plan
Aegon Life iMaximize Single Premium Insurance Plan is a life insurance cum investment plan allows the individuals to select from six unit-linked funds on the basis of the objectives. There is a specific fund in which the investment is made in mid-sized companies that have potential to achieve success in future. This online plan helps you to boost the fund value through Top-ups.
With numerous life insurance plans related to single premium options, it is a wise idea to invest in it if you have a reasonable budget for the same. You can take the support of policy comparison portals ComparePolicy.com to get detailed information on popular policies. You must also contact customer support representatives of the respective insurer to clarify your doubts before purchasing the best policy.