A single premium policy is flexible life insurance that 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 they aid in 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 a fixed interest rate based on the insurance company’s investment experience.
Regular Premium Policy
Single premium variable life enables the insured to choose the plan from the list of professionally managed stock, bond, and money market sub-accounts, as well as fixed accounts.
Your choice to select the best single premium policies depends on your financial goals and ability to handle the market changes.
Difference Between Single Premium Policy and Regular Premium Policy
When you decide to buy the best life insurance policy, you may across 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.
| Policy | Pros | Cons |
| Single Premium Policy |
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| Regular Premium Policy |
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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 life insurance that takes a premium at one time. Most of the best single premium policies provide a life cover on payment of a one time. It entitles 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 constitutes 10% of the sum assured, then you are eligible for section 80C.
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 the 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.
1. LIC Single Premium Policy
LIC single premium policy is a non-linked endowment plan. In the event that the policyholder dies before the commencement of the risk date, the insurer will pay the return to the nominee, where the premium is paid in a lump-sum amount to the policyholder. This LIC single premium policy is better for the people who wants to lump-sum amount after a long time.
Jeevan Vridhi LIC Single Premium Policy
Jeevan Vridhi is an insurance plan that gives a sum assured with other loyalty programs after the maturity period. This plan has a fixed tenure period of 10 years. It is one of the best LIC single premium policies.
Features of Jeevan Vridhi LIC single premium policy
- The minimum age to opt for the plan is 18 years and the maximum age is 50 years.
- The minimum sum assured you will get Rs. 1,50,000.
- In the event if you are not satisfied with the policy, you will get the return within the 15 days from the date of insurance.
- You will get the tax benefits under section 80C of income tax.
- The sum assured is paid as a death benefit.
- Its additional features make it the best single premium policy.
Jeevan Nidhi LIC Single Premium Policy
LIC Jeevan Nidhi’s insurance policy provides death benefits of savings and protection to the policy holder. Under this plan you can avail multiple pension options for various phases of life. After the maturity period, the nominee will receive the sum assured along with additional benefits.
Features of Jeevan Nidhi LIC single premium policy
- The minimum age to opt for the plan is 18 years and maximum age is 50 years.
- The minimum sum assured you will get Rs. 1 Lakh to 2,95,000.
- The sum assured along with additional benefits.
- This pension plan comes with the flexibility of regular and single premium payments.
It is one of the best LIC single premium policies pension plans that premiums are affordable.
Jeevan Akshay LIC Single Premium Policy – 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 Jeevan Akshay LIC Single Premium Policy – 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.
- An annuity is payable for either 5 years, 10 years, or 15 years.
- Policy holder need to go for the medical examination before availing the best single premium policy.
Benefits of Jeevan Akshay LIC Single Premium Policy – VI Plan
- Tax on premiums is deductible under the section 80C of the income tax.
- Excellent retirement solutions.
- If a policyholder purchases high premiums he will get incentives.
Also read: HDFC Life Click 2 Protect 3D Plus
2. HDFC Life New Immediate Annuity Plan
In this traditional single premium policy, the policyholder pays the money in a lump-sum, and the annuity starts immediately. You can use this retirement plan where you get regular income when you have stopped earning.
Features of HDFC Life New Immediate Annuity Plan
- This single premium policy comes with a range of annuity options.
- A policyholder gets higher annuity rates on a large purchase.
- Individuals between 30 years to 85 years old 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 a 100% return on purchase.
- The 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.
Also read: Max Life Cancer Insurance Plan
3. 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 their retirement goals.
- It is the best single premium policy and comes with flexibility regarding receiving payments.
- No maturity benefits are provided to the insured.
4. SBI- Smart Wealth Assure Plan
It is non-participating, unit-linked, and one of the best single premium policies. A policyholder needs to pay the 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.
Conclusion
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 live hassle-free after availing one of these single premium policies.
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