A single premium policy is a flexible life insurance which allows you to pay a lump-sum amount monthly, half-yearly, and yearly. Apart from flexibility, the reason why the best single premium policies are preferred over regular premium policies is that it aids to substantial cost savings.
Types of Best Single Premium Policies
There are types of single premium policies that are listed below-
Single Premium Policy
Single premium whole life pays fixed interest rate based on the insurance company’s investment experience.
Regular Premium Policy
Single premium variable life enables insured to choose the plan from the list of professionally managed stock, bond, and money market sub-account, as well as fixed account.
You choice to select the best single premium policies depend on your financial goals and ability to handle the market changes.
Difference between Single Premium Policy and Regular Premium Policy
When you are decided to buy best life insurance policy, you may across with one question whether you go for the best single premium policy or regular premium policy. To help you out, we have mentioned the key difference between them in a tabular form. So, let’s get read them.
|Single Premium Policy||· You are not required to remember the premium dates because it is paid at one go.
· The charges on premium are also deducted at one time and comparatively nominal than regular premium policy.
· There is no worry about transferring fund to discontinued fund which only gives a merge of 3.5% returns on the invest
|· The single premium policy life coverage is just 1.25 times the premium paid.
· This plan offers you one-time tax benefit.
· This policy doesn’t offer you cost averaging benefits.
|Regular Premium Policy||· One of the significant advantages you will get in this life insurance premium policy is that it offers you cost averaging benefits.
· When you pay premium on a regular interval of time it lowers the investment cost and other premium charges
· A policy owner receives tax benefits up to Rs. 1.5 Lakhs on the premium paid every year.
|· When the policy holder is denied to pay the premium then the policy will lapse. Once the policy is lapsed you will not get the benefits of the policy.
· During the initial investment periods of the first five years, if you unable to the regular premium the money will get shifted to the discontinued fund.
The premiums of both the plans are same; it’s all up to you in what frequency you are willing to invest in the life insurance policies. But, when it comes to money, the regular premium policies are more powerful than the single premium policies.
Tax Benefits of Single Premium Policy
A single premium policy is the life insurance which take premium at one time. Most of the best single premium policies provide a life cover on payment of a one time. It entitle investors to a tax deduction of Rs. Up to 1 Lakh on premium paid under the section 80C and also free tax death maturity benefits under the section 10 (10) D.
All life insurance policies are now eligible for the tax deduction under the 80 C and Section 10 (10) D of the income tax. This amendment is applicable for both the best single premium policy and regular premium policy. If minimum assured amount throughout the policy term remains 10 times the single premium then you are eligible for section 10 (10) death maturity tax benefits. If the annual premium is 10% of the sum assured then you are eligible for the section 80 C.
So, we hope now you understand the tax benefits of the single premium policy. Now we are coming to the best single premium policies that have gained attention of the customers in the market.
Best Single Premium Policies in India
Almost all renowned financial companies are offering the single premium policies to cater to the requirements of the customers. Below we have mentioned top single premium policies. So, let’s read them.
LIC Jeevan Akshay- VI Plan
This single premium policy is an immediate annuity plan, which can availed by paying lump-sum amount at one time. If a policy holder get died, this company offers death benefits to the nominee.
Features of LIC Jeevan Akshay – VI Plan
- The minimum age to avail this policy is 30 years and maximum age is 85 years.
- The minimum purchase price of this policy is Rs. 1.5 Lakhs.
- Annuity payable for either 5 years, 10 years and 15 years.
- Policy holder need to go for the medical examination before availing the best single premium policy.
Benefits of LIC Jeevan Akshay – VI Plan
- Tax on premiums is deductible under the section 80C of the income tax.
- Excellent retirement solutions.
- If a policy holder purchase high premiums he will get incentives.
HDFC Life New Immediate Annuity Plan
This single premium policy is a traditional plan where the money need to be paid in lump-sum and the annuity starts immediately. You can use this plan for a retirement where you get regular income when you have stopped earning.
Features of HDFC Life New Immediate Annuity Plan
- This single premium policy is come with range of annuity options.
- A policy holder get higher annuity rates on a large purchase.
- Individuals between 30 years to 85 years can opt for this policy.
Benefits of HDFC Life New Immediate Annuity Plan
- It is one of the best single premium policies because it offers 100% return of purchase.
- Purchase price is payable if surrendered within 7 years.
- Tax on premiums is deductible under the section 80 C of the income tax.
- There is no loan facility in this plan.
Max Life Guaranteed Life Insurance Plan
It is the guaranteed life insurance plan that provides guaranteed income to the policy holder for their entire lifetime.
Features of Max Life Guaranteed Life Insurance Plan
- It is one of the best single premium insurance policies which come with 4 annuity options.
- Individuals purchase this plan between 50 years to 80 years.
- Once purchased this plan, a steady income will be given to the policy holder.
Benefits of Max Life Guaranteed Life Insurance Plan
- This plan offers individuals a guaranteed income to meet your retirement goals.
- It is the best single premium policy come with flexibility regarding receiving payments.
- No maturity benefits are provided to the insured.
SBI- Smart Wealth Assure Plan
It is non-participating, unit-linked, one of the best single premium policies. A policy holder need to pay lump-sum amount at one time. Along with that you can choose to pay due premiums for five years.
Features of SBI- Smart Wealth Assure Plan
- Individuals between 8 years and 65 years can opt for this life insurance policy.
- This life insurance policy offers coverage throughout the policy tenure.
Benefits of SBI- Smart Wealth Assure Plan
- This life insurance plan offers security to your family in terms of financial protection.
- This life insurance plan offers flexibility to manage your fund.
- You will get reliability through periodic assured additions.
We hope this comprehensive guide on the best single premium policies help you a lot and guide you whether you choose the best single premium policy or not. You can safeguard your family with these plans and let them to live in hassle-free after availing one of these single premium policies.