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Term Insurance Payment Options
Term insurance Plan offer different payment options that include Regular, Single and Limited payment. Paying the premium on a monthly, quarterly, half-yearly, or annual basis is considered regular payment. You can pay for a shorter period of time and take enjoy the benefits for a longer period of time with limited payment. Although a single payment is a one-time premium, inflation considerably impacts the money's value.
1 Crore Term Insurance@Rs.19/day***
To delay is to regret
You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.
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Return of Premium (ROP) Option^
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Individual Death Claim Settlement Ratio of 99.50%##
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Same Day Claim Processing#
:1800-266-9777
Know All the Term Insurance Premium Payment Options
Table of Content
Term insurance gives you a high coverage against risk of Life. It is economical and hence is gaining popularity. One of the factors before investing in a term insurance plan is to check the payment options. Insurance policies come with different payment options. Consider that before selecting a policy suited for you.
Understanding the Payment Option in Term Insurance
Regular Payment Option-
This involves paying the premium monthly, quarterly, half yearly or yearly and is the most recommended option. If you are a salaried person, paying premium together can burden you. That’s why periodic payments make sense. It also allows you to discontinue the policy once there are no liabilities and you believe that your dependents are financially independent.Limited Payment option-
It’s a method where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a longer time. Its for two people- Those who don’t like paying for premiums for a longer period of time, and people who have seen a sudden rise in their income, like somebody who has been posted abroad for a few years for work or a businessman whose business is doing well lately. Limited payment option is also a good one for those who would be retiring before the term plan expires. In this case, there is no expense on the insurance post-retirement as the premiums are already paid. At the same time, the cover extends for a longer period even post-retirement. The premium that is paid, however, is higher than the premium paid in regular insurance policiesSingle Payment options-
For instance- a 30 year old person pays an annual premium of Rs.10,000 for 30 years for a sum assured of Rs 1 Crore. That comes to effectively Rs 3 lacs for 30 years. However, a single premium on the same policy one-time for the same sum assured costs Rs 2.4 lacs. While this is less by Rs 60,000 inflation changes the value of the money significantly. So considering that the inflation is at 6%, the single premium of Rs.2.4 lacs amounts to Rs.13.75 lacs after inflation in 30 years. It means you are actually paying a lot more for the policy in terms of time value of money. This is something you must consider and make the calculations upfront before you decide which right product is for you.
Mode of premium payment |
Amount of premium |
Payout |
Regular (Yearly) |
12,478 |
1,00,00,000 |
Single |
2,33,137 |
1,00,00,000 |
Limited |
13,076 subject to 35 years payment term |
1,00,00,000 |
(Assuming for a 30-year old non-smoker male buying a term plan for 40 years)
HDFC Life offers its patrons the best plans in the Industry. Choose a term life insurance plan that is best suited for you and help secure your family’s financial future.
https://www.hdfclife.com/life-insurance-plans
Related Articles
- ROP option: Understand the pros and cons
- Pure Term Insurance Vs Return of Premium Vs Permanent Life Insurance
- Comparing Regular and Return of Premium Term Plans
- What is digital life insurance
- What is term life insurance plan
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99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
Disclaimer: By submitting your contact details, you agree to HDFC Life's Privacy Policy and authorize ...Read More
99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
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Here's all you should know about life insurance.
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HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
^ Available under Life & Life Plus plan options
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
##Individual claim settlement ratio by number of policies as per audited annual statistics for FY 23-24
***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
**If a customer is a Salaried individual and has opted for a cover of INR 2 Cr with Limited pay, then the total discounts applicable shall be: 10% +7% = 17% discount on the first year premiums.
@As per integrated annual report FY24-25, available on www.hdfclife.com. As of May 2025
~Tax benefits of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 30% on life insurance premium u/s 80C of ₹ 1,50,000 and health premium (Critical illness rider) u/s 80D of ₹ 25,000. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961. Please consult your tax advisor for more information.
ARN: ED/12/19/17049
