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Single Premium Term Insurance
Single Premium Term Insurance
A hassle-free way to get comprehensive term% insurance coverage! Give your family the financial security they deserve with Tata AIA Term Insurance Plans.
A hassle-free way to get comprehensive term% insurance coverage! Give your family the financial security they deserve with Tata AIA Term Insurance Plans.
Get life cover up to 100 years of age*
Increase life cover at important milestones~
Save tax# up to Rs 46,800++
Get 1 Crore life cover
@Rs. 424/month$$
Get 1 Crore life cover
@Rs. 424/month$$.
Term plans have always been the preferred choice of life insurance for many policy buyers. And this is not surprising, given how you can get high coverage and sum assured for quite affordable premiums. Pure term plans that come only with a life insurance cover are ideal if you only want to protect your family from financial uncertainties. The working of a term insurance plan is quite simple, and in case of unfortunate demise of the life assured within the policy term, the death benefit, will be paid out to your family.
Another important feature of a term plan is that they are extremely flexible regarding the sum assured, the policy term, premium payment options, and the choice of riders. Since so many people opt for term insurance plans, it is natural that the plans need greater variety to cater to the individual needs of different policy buyers. The premium payment is an important component of any life insurance policy and also offers adequate options for policyholders, and one of them is the single premium term insurance plan.
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The single premium term insurance plan is one of the options under premium payment terms, along with regular premium pay and limited premium pay. The single premium term plan is a premium payment term, and a premium payment mode since you only need to make one-time lump sum premium payment to start enjoying your term insurance coverage.
By choosing a single premium term insurance plan, you can avoid the hassle of making regular premium payments towards your term insurance plan on a monthly, quarterly, semi-annual, and annual basis. This means your term insurance policy only needs a single lump-sum premium payment at the start of the policy term, and no other payments need to be made.
A lot of policy buyers tend to get confused between the annual premium payment mode and the single payment term insurance. The annual premium payment mode enables you to pay regular or limited premiums once a year until the premium payment term is over. On the other hand, if you opt for the one-time premium term plan, you do not have to pay anything more than the first lump sum premium.
The single time premium policy offers a lot of conveniences since you need not keep worrying about the upcoming premium dates. All you need to do is pay the premium once, purchase the policy and then let the term plan take care of you and your family. This lets you get rid of worries like policy lapses and termination, which is quite like in a regular pay or limited pay term plan if you default continuously on your premium payment.
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03)
TATA AIA
A single premium term insurance plan comes with several benefits. When choosing this premium payment option in a term plan, you should be in any of the following categories that ensure that you are at an advantage when paying a single premium:
People With Irregular Income
As you may be aware, term insurance plans are quite flexible and hence, not only designed for those with a steady and stable income. Hence, if you are a freelancer or a businessperson who tends to earn a large sum of money periodically, a single pay term plan is a good choice for you. That way, you will not have to worry about making premium payments during a time when your business or profession is not profitable enough.
People With Busy Schedules
Regular pay term plans come with premium payment frequencies where you can choose to pay monthly, quarterly, semi-annual, or annual premiums. But for people who have hectic schedules and have a lot of other things to take care of, a single premium term plan works out since they do not have to keep track of the due dates or risk a policy lapse in case of missed premium payments.
Lump-Sum Investment
A lot of investors, after making different investments, may have some amount left that they would like to invest. Moreover, if you inherit a lump sum from your family, receive a lavish bonus, or make a huge profit in your business, you can opt for a single premium term plan. Thus, not only is the money saved from being idle, but you can also protect your family with life insurance coverage by opting for a single premium term policy with a lump sum investment.
When you buy a one-time premium term plan, you and your family can start enjoying the life cover protection once the premium is paid and the policy coverage begins. However, there are also some other benefits that you should consider while getting a single premium term insurance plan. They are:
One-time Payment
With a single premium term policy, you do not have to keep track of the upcoming policy premiums as you would have to with a regular or limited pay term plan. All you need to do is make the single premium payment and then continue enjoying the coverage until the end of the policy period. You do not have to be concerned about missing any premium payments since there is no future commitment to paying any premiums. This means there is a low risk of a policy lapse that could happen with a regular or limited period plan.
Tax Benefits
The one-time premium term plan offers tax# benefits under Section 80C of the Income Tax Act, 1961, where the premiums paid on the policy will be tax deductible up to Rs.1.5 lakhs. Moreover, your nominees or family can also benefit from tax exemptions on the death benefit or maturity payout of the single payment term insurance under Section 10(10D) of the Income Tax Act.
Financial Security
Your family will start to receive life insurance coverage from the single payment term insurance plan once the premium has been paid. This means you do not have to risk your family’s financial security in case you miss a premium payment. Moreover, with a single premium term policy, you can also focus on other financial aspects and manage your financial planning better since you do not have to worry about any more premium payments. And in case of a misfortune, your family will be able to avail of the death benefit from the single premium term policy as soon as the term plan claim is approved.
Why should one opt for a single premium term insurance?
One should opt for a single premium term insurance plan if they want to avoid the hassle of paying premiums each month or each year as per a regular payment plan. Also, if one does not have a stable income and wants to invest a large sum of money for life insurance coverage, a single premium plan is suitable for them.
Is it possible to first choose a single premium payment and then opt for regular premium pay?
No, if you have selected the single premium payment, then you will have to make one lump sum premium payment towards your term insurance policy. You may not be able to switch from one option to the other.
Does the single premium pay only apply to term plans?
No, a single premium payment option is available with different types of life insurance plans.
Will I have to calculate the premium for my single premium term plan?
There is a minimum and maximum limit set for your premium payments, and even in case of the single pay, there will be a minimum and maximum amount, depending on your sum assured. While you can use a term insurance premium calculator to understand your single premium payment amount, it is a more useful tool for those who need to plan their premium payments over the policy term or more than just a single payment.
What is the difference between Single Pay, Regular Pay and Limited Pay?
Under Single Pay, you need to make one lump sum premium payment towards your term plan at the beginning of the policy period. On the other hand, a Limited Pay plan enables you to pay the premiums for a limited and fixed number of years that is less than the policy term. As for Regular Pay, the premium payment term is equal to the policy term you choose.
Will I be able to get tax benefits on a Single Pay plan?
Yes, you can avail of tax# benefits in a single premium term policy under Section 80C of the Income Tax Act. As per this section, your premiums paid towards the term plan will be eligible for a tax deduction.
Does a term insurance plan have cash value if it is surrendered?
No, a pure term plan does not have any cash value if it is surrendered. Hence, if you choose to cancel your term insurance plan, you will not get any surrender benefits. However, without a life cover, your family will be unprotected from financial uncertainties that could occur at any point in time.
Can I choose to have a Single Pay plan if I am a salaried employee?
Anyone can choose a Single Pay plan, irrespective of their profession. However, it is important that you are able to pay or have the means to pay the lump sum premium amount at the start of the policy.
How to file a claim for a term insurance plan?
If you want to file a claim with us, you can select any of the below channels –
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
Is a pure term plan with single pay better than a term plan with a return of premium?
You can choose a single payment term insurance that offers only life cover or a term plan with a return of premium as per your needs. The former is for those who are looking only for extensive life cover protection, while the latter is better suited for those who want a maturity benefit from their term plan.
How to increase the term plan coverage?
With Tata AIA Sampoorna Raksha Supreme, you can increase your term plan coverage with the Life Stage Option~ and increase your life cover at every important milestone in your life such as loan disbursal, marriage or birth of your child that calls for greater insurance protection.
How to choose a suitable term insurance plan for my family?
To buy a suitable term insurance plan for your family, you will have to take into consideration some important factors such as your present and future income, your family’s current needs and their future financial commitments and obligations, and any unforeseen emergencies or events that need financial assistance, the affordability of your term plan, the policy period, and the premium payment term.
How do I calculate my term plan premiums online?
You can calculate your term insurance premium online by using our term insurance premium calculator available on the official website of Tata AIA Life Insurance.
Can my nominee from outside India claim my term insurance on my death?
If the nominee wants to file a claim but is outside India, then they can file the claim online by uploading the attested copies of the required documents online or through email. On the other hand, if the nominee wishes to file the claim offline, then they can send their documents to their representative in India, who can visit our office and initiate the process.
Can an NRI purchase a term insurance plan in India?
Non-Resident Indians (NRIs) can purchase term plans in India, but they will have to present documents that show their proof of Indian nationality. They will also have to provide documents such as age proof and address proof that show they belong to a certain Indian state, city, or location.
Disclaimer
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