Check Best Single Premium Insurance Plans in India

Single premium insurance plans in India are a one-time investment option where you have to pay the premium only once.  It comes with the features of an investment option, a partial withdrawal benefit, and tax returns. While the investment option allows you to invest your money in debt or equity market instruments, the partial withdrawal feature enables you to withdraw a portion of your invested funds or the sum assured at any point during the policy tenure.  The tax returns make sure that the premiums paid by you are exempted from taxes. In some cases, the maturity benefit is exempted from taxes as well, thereby augmenting the money you receive at maturity. 

This kind of insurance policy is a good option for those individuals who want to maximize their investments without the hassle of paying periodic premiums. Single premium insurance plans might not be as flexible as life insurance policies but are more popular as a tax-saving investment product. 

5 top Single Premium Insurance Policies in India

The following is a detailed account of 5 top single-premium insurance policies in India -

1. LIC Single Premium Insurance Plan

The LIC Single Premium Insurance Plan belongs to one of the most reputed insurance providers in India. This insurance policy comes with a life cover as well as an investment option. It has a minimum sum assured of INR 50,000 and comes with a maturity benefit that is payable to the policyholder at the end of the policy tenure along with a final bonus. The nominee is liable to receive the sum assured and accumulated bonuses as a death benefit, in case the policyholder suffers an untimely death. The LIC Term insurance plan also comes with a specific surrender value that is equal to 75% of the premiums paid if the policy is surrendered within 12 months. 90% of the premiums paid will be refunded as surrender value if the policy is surrendered after the second year. This plan also allows its subscribers a loan facility after one year has elapsed from the date of policy commencement. 

2. ICICI Pru Easy Retirement SP

This ICICI Term insurance plan is designed to offer financial support for post-retirement days. The most attractive feature of this plan is its investment option in the form of top-up insurance that guarantees greater protection and comes with a minimum sum assured at 101% of a single premium. The policyholder can increase their sum assured amount by investing funds in either of the two fund options, namely, the Easy Retirement SP Balance Fund or the Easy Retirement Secure Fund option, as per their risk profile. The ICICI prudential term insurance plan also offers a higher promised death benefit or fund value to the nominee in case the policyholder dies during the tenure of the plan. The total fund value is paid as a surrender benefit under this plan and can be obtained only after the first 5 years. In case the policy is discontinued before 5 years, the policyholder will receive a reduced surrender value. 

3. Kotak Single Invest Advantage

This is a flexible option and allows its policyholders to have access to its funds and features upon completion of 18 years of age. It comes with a minimum sum assured amount at 10 times the single premium. This Kotak term insurance plan allows the policyholder to choose from 5 different fund options for their investment needs. It also offers a partial and systematic withdrawal facility where the policyholder can utilize their fund value for their requirement at any point in the tenure. In case the policyholder dies a premature death or suffers an accident, the nominee would receive a higher of either the fund value, the top-up sum assured, or 105% of premiums paid till death. Loyalty additions are an added feature of this plan. 

4. HDFC Life Click 2 Invest ULIP

The HDFC Life Click 2 Invest ULIP is a combined life insurance and investment option. With a minimum sum assured amount at 125% of a single premium, it comes with as many as 8 fund options for your investment requirements. The plan has a ‘Settlement Option’ that allows the policyholder to redeem their maturity benefit after 5 years of policy commencement. This is supplemented by 4 free switch options, whereby the policyholder can move their funds between different fund options to meet their financial goals. The HDFC term insurance plan offers the nominee a death benefit in the unfortunate occasion of the policyholder’s demise; payable as the highest of the fund value or the sum assured or 105% of the premiums paid. Subscribers of this plan can opt to receive their entire fund value as a surrender benefit in case the policy is after the first 5 years of the policy term. If it is surrendered before 5 years, the policyholder receives a reduced surrender benefit. An additional partial withdrawal benefit is also available, whereby policyholders can withdraw a portion of their funds at any point in the policy tenure. 

5. SBI Life Smart Wealth Assure

This insurance policy is the best option in case an individual is looking forward to investing a high fund amount and maximizing their savings. It has a minimum sum assured amount of 125% of the single premium and comes with two fund options for investment requirements. The policyholder can utilize the switching facility to move their money from one fund option to the other, thereby meeting their financial goals. The SBI term insurance plan also offers the total fund value as a maturity benefit that will be payable to them at the end of the policy.  If the policyholder suffers an untimely death, their nominee is eligible for a death benefit; payable as the highest of either the fund value or 105% of the total premiums paid. This policy also has a rider that offers a minimum coverage of INR 25,000 and a maximum coverage within the ceiling of the sum assured amount or INR 50 Lakh. 

These are the features and benefits of the 5 top single-premium insurance plans in India. You are advised to compare each of these plans before hurriedly investing or purchasing one. However, the best plan suited to you will ultimately correspond with your short and long-term financial goals. 

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Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.