Life Insurance

List of Best Single Premium Life Insurance Plans In India

Nov 24, 2021

The Best Single Premium Life Insurance Plans available in India

Single-Premium payment mode is available with almost all types of plans like the Term Plans, Endowment Plan, ULIP Plans and Pension Plans across all insurance companies in India. In these plans, you are allowed to pay only once and reap the benefits throughout the policy term without worrying about keeping renewal dates in mind or preparing for payment at a regular instalment, like monthly, quarterly, half-yearly or annually. Thus in case a specific corpus is at your disposal that might or might not be available again at some specific interval then you can easily go for an investment in any single premium policies or maybe use it to buy a term plan. In that way, your investment or coverage would be taken care of respectively and you would also not be under a pressure to provide for the policy again.

  1. Single-Premium in Term Plans
    Term Plans is pure protection plans that are core products provided by any insurance company. And if you want you can avail the product by paying only once and stay covered for the entire term. You would also be entitled to other benefits in the plan like the return of premium or coverage against Critical Illness and so even if you opt for single premium as the payment mode for your policy. Below are the two most well-known Term Plans that provide you with the option to pay a Single Premium and stay covered for the entire term:
    1. HDFC Life Click 2 Protect Plus plan
      Key features of the plan are as follows:
      1. Coverage is available at an affordable premium
      2. Coverage available upto the age of 85
      3. Provides financial protection against the loss of the life of a family member on whose income the family was dependant.
      4. Various types of coverage and maturity options are provided like

         
Variant Option of HDFC Life Click 2 Protect Plus PlanBenefit
Life OptionA Lump Sum amount that is the Sum Assured of the policy is paid on death
Extra Life OptionSum Assured + An extra Sum Assured is paid to the nominee in case of accidental death if the insured person
Income OptionThis plan pays 10% of the Sum Assured at the time of death of the insured person to the nominee + the leftover 90% is paid to the nominee in equal monthly payout for a period of 15 years thereafter.
Income Plus OptionSum Assured is paid to the nominee in case of death of the life insured + a monthly income of 0.5% of Sum Assured is paid to the nominee for 10 years (the monthly income can be fixed at a level of increased at a rate of 10% on the completion of each policy year)
  1. The option Life stage allows you to increase the premium at a certain stage of life without any medicals
  2. Non- tobacco users premium is quite low
  3. Various payment options are available as Single, Limited and Regular mode of payment
  4. Riders like Accidental Disability Rider and the Critical Illness Plus Rider is available.
  5. Tax benefit is available for premium paid up to INR 1.5 lakhs a year u/s 80C
  6. ICICI Pru iProtect Smart Plan
    Key Features of the plan is as follows:
    1. Coverage against death, an illness or disability that might prove to be terminal
    2. You can choose to take Accelerated Critical Illness Benefit and Accidental Death Benefit
    3. You can choose from the array of options that are available for the payout mode. This enables you to design the product as per your own needs. The different payout modes are as follows:

       
Life OptionDeath Benefit + Terminal Illness benefit + Waiver of premium in case the Life Insured faces permanent disability
Life Plus OptionDeath Benefit + Accidental Death Benefit + Terminal Illness  Benefit +  Waiver of premium in case the Life Insured faces permanent disability
Life and Health OptionDeath Benefit + Accelerated Critical Illness Benefit + Terminal Illness  Benefit +  Waiver of premium in case the Life Insured faces permanent disability
All in OneDeath Benefit + Accelerated Critical Illness Benefit + Terminal Illness  Benefit + Accidental Death Benefit + Waiver of premium in case the Life Insured faces permanent disability
  1. Attractively low premium rates for non-tobacco users
  2. Women Life Insured provided with Special rates for Death Benefit and Accelerated Critical Illness Benefit 
  3. Accelerated Critical Illness Benefit covers female lives for cancer in female organs like cervical cancer and breast cancer
  4. You are provided with flexible premium payment options like Single-Premium, Limited Payment and Regular payment option
  5. The tax benefit is available u/s 80C for the premium paid upto INR 1.5 lakhs a year

Thus you can use a single premium policy to get a term plan and keep your nominee protected against any financial atrocity that they might face in case of any mishap for the entire term of the plan.

  1. Single-Premium in Endowment Plans
    Endowment Plans are non-participating traditional plans that give you coverage during the term of the policy and a specific return in case of survival.  Some such endowment plans allow the customer to pay only once and maintain its benefit for the entire term.
    1. LIC’s Single Premium Endowment Plan
      It is an endowment plan that keeps you covered for the term of the policy, providing financial security to the nominee in case of death and also gives you the maturity benefit if you outlive the term of the plan. And LIC provides you with the chance of obtaining an Endowment Plan by only paying once for it. Below are some salient features of the plan:
      1. It is a protection plan that can be used as a savings plan too.
      2. Allows you to pay only once and enjoy the benefit for the entire term.
      3. Sum Assured paid to the nominee in case of death of the life assured within the policy term.
      4. Maturity Benefit if the life insured outlived the policy term
      5. It is a non-linked participating policy and thus bonus would be declared against the sum assured depending on the profits made by the company
      6. Liquidity in the policy comes with the loan option that one can avail against the policy
      7. Income Tax Benefit is available for premium paid upto INR 1.5 lakhs u/s 80C of the Income Tax Act 1961.

         
  2. Single-Premium in ULIP Plans
    The ULIP Plans Unit Linked Insurance Plans are savings plans that allow a customer to invest in the stock market or debt market and also provide financial support to the nominee against the loss of life of the life insured. And few insurance companies provide a ULIP plan that can be obtained by paying the premium only once.
    1. HDFC Life Classic One 
      It is a Unit Linked Single Premium Life Insurance Plan that provides you with a unique feature where two individuals are covered under the same plan. Features of the plan are as follows:
      1. The option of taking a single or joint life coverage
      2. 10 times of the single premium is offered as death benefit even on the death of the second life assured
      3. Choose to invest in any of the 11 funds
      4. Unlimited amount of switches are allowed free of cost
      5. Loyalty additions are offered so that the fund value of the policy receives a spike from time to time
      6. Rupee Cost Averaging is a benefit that is provided
      7. Tax Benefit is available
  3. Single-Premium in Pension Plans
    Pension Plans are an integral part of the array of the products provided by the insurance company to its customers. These plans allow a customer to pay a premium in his policy for a certain period of time and then receive a pension throughout his life once he reaches his annuity age. Such pension plans are also available with the option of paying premium only once and are generally known as Single Premium Pension Plans. Below is the detail of one such single premium pension.
    1. ICICI Pru Easy Retirement Single Premium
      This plan provides a chance to grow the money as it invests in both equity and debt funds and provides you with the opportunity to switch as per your convenience. This plan allows you to pay once and chose between a variety of annuity options at the vesting age. The features of the plan are as follows:
      1. Capital Guarantee of the Investment – 
        The Fund Value or the Assured Return (1015 of the premiums paid, inclusive of the top-ups paid if any) whichever is higher is paid out at the vesting age
      2. You can defer the date of maturity that is the vesting date if you feel that the Fund Value is inadequate till the time you are 55 years of age.

         
Name of FundFund StructureObjective
Easy Retirement SP Balanced fundInvested in equity and debtEnsure balanced return
Easy Retirement Secure FundInvested in  Debt Market, Money Market, and Cash InvestmentBalance of return and security from sudden market fall
  1. 2 Fund Options to chose from 
  2. Pension booster available to enhance the fund value in the policy
  3. Loyalty benefits would be added at the end of each year starting from the completion of the fifth policy anniversary
  4. There are several options that you may avail to receive your money:
    1. Regular Income Option – Portion of the fund value would be given to you as monthly, quarterly or yearly income
    2. Lump-Sum + Regular Income – You may withdraw up to 60% of the Fund Value as a lump sum amount and t6ake an income at a certain frequency from the leftover amount.
    3. Postpone the Vesting Age – The vesting age cab=n be postponed if in case you do not want to withdraw your fund value taking the present scenario of the market and want to stay invested for a certain amount of time till the time you are 55 years of age.
    4. Single-Premium Deferred Pension Product -  You can invest the amount in a fresh pension plan to postpone the annuity age and take the regular income at a later stage of your life
  5. An annuity is a regular income that you would get against the lump sum investment. The annuity amount depends on the annuity rate that is applicable at the time of your vesting. The several types of annuity options available are:
    1. Life Annuity – Get pension in the form of equal instalments for your lifetime
    2. Life Annuity with Return of Purchase Price - You would be getting a pension for your life as per the annuity rate and post your life your nominee would receive the purchase price.
    3. Joint Life Last Survivor Without Return of Purchase Price – You get the payout for your lifetime and post your life your spouse gets the payout of the same amount.
    4. Joint Life Last Survivor With Return of Purchase Price – You would receive a pension as per the annuity rate, your spouse would receive the same payout in your absence. And in the event of both your demise the purchase price would be paid to the nominee of the plan.
    5. Life Annuity guaranteed for 5/10/15 years and thereafter – In this option, you chose a term of 5/10/15 years and your annuity rate would be decided accordingly. You would be paid the same amount for the opted term. Even in case of your demise, your spouse would continue to enjoy the same benefit till the end of the term. At the end of the term, no one receives any further payout be it you or your spouse, whoever survives the term
  6. Guaranteed Death Benefit is available in case of the demise of the life insured within the period of the policy term. The Guaranteed Death Benefit is the Fund value or 105% of the premiums paid including top-ups, whichever is higher
  7. Tax Benefit Under Section 80CCC and Under Section 10(10A) is available

Thus it is clearly evident that whatever be the type plan you would wish to invest in or take up as a life coverage plan you would get an option of investing in the form of Single Premium. And it is good to avail this option if you feel that the corpus you want to invest is available to you for once and you would not want to get into the hassle of a regular premium. In such situations, a Single Premium Plan is genuinely beneficial.

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