• Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

Single premium insurance- when should you opt for

December 12, 2018
With growing focus on consumer satisfaction and the rising levels of innovation in the insurance industry, insurers today are well versed with kind of flexibility that the average policyholders demand. This has had a very positive impact on the overall insurance outreach in India and the general increase in financial awareness. Among one of the many options that have come up today, single premium insurance plans count among the very popular ones. As the name suggests, a single premium insurance plan is an insurance product which offers complete coverage benefits in return of a one-time payable premium. Therefore, in a single premium insurance plan, the calculated premium can be paid in one go and there is no need for regular paying of the premium.

A single premium insurance plan offers certain benefits over the regular premium plan. For one, it saves the policy subscriber from the hassles and inconvenience of having to track the schedule for paying regular premiums. Besides being more convenient, it is more economical when viewed from the long term perspective of premiums involved in payments over years (payable premiums in regular premium policies). However, there are certain things that you must consider before investing in single premium insurance plans. The exemption on taxes for instance is variable and if 10% of the main corpus (sum assured) is less than the paid annual premium, then no exemption can be claimed. Besides a regular premium plan inculcates financial discipline and keeps you in know of the exact fund position. There is also the factor of rupee cost averaging which actually works in the favor of single premium policies. This factor cushions your corpus from market related risks. This is not possible with single premium insurance plans.

Before taking any decision regarding purchasing a single premium insurance plan, you must list your requirements and prepare a suitable plan of action accordingly. The saving and investment portfolio that you maintain must be diverse and this should ideally mean that if you have had a profit or an unexpected gain in the form of any monetary benefit or reward etc., then you must consider having a single premium insurance plan for added benefits. The plan must suit your needs and must have clearly listed and mentioned terms and conditions. You must keep in mind the various factors that count. For instance, your plan must be cost effective. For instance, in the event of the subscriber's death, a regular premium plan entitles the nominee(s) for the death benefit. However, in case of single premium insurance plan, the lump sum amount paid by the subscriber is actually of no use to the nominee(s) in the event of demise of the subscriber before the policy term.

HDFC Life offers several term plans that have been formulated keeping the financial interests of your loved ones in prime focus. These plans offer complete and extensive financial coverage and allow you to lead a stress free life with no financial woes of any sort. For details, click on the mentioned link: https://www.hdfclife.com/term-insurance-plans.



Show Full Article
Hide Full Article

Investment Articles Investment Articles

HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.

Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.

For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.

  • IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.