Single Premium Term Life Insurance – Best SP Term Life Insurance Plans in India 2025
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As the sole earning member of a household, it is your duty to secure the dependents financially, especially for the future when you may not be there. Getting a Single Premium term life plan is the best way to do so. Let’s find out more!
It is important to strategies your financial requirements by investing in funds which can help you reap benefits later in life. One such best strategy is to buy a Single Premium Term Life Insurance policy. Let’s take a look at the Single Premium Term Life Insurance rates and other details in this post.
What is Single Premium Term Life Insurance?
Single premium term life insurance is a type of life insurance policy where the policyholder pays the entire premium in a single lump sum payment. This is in contrast to traditional term life insurance policies, where the policyholder typically pays the premium in regular, recurring payments (e.g., monthly, annually).
The main advantage of single premium term life insurance is that it can provide life insurance coverage for a longer term than traditional term life insurance, while requiring only a single premium payment. This can be an attractive option for individuals who want to ensure that their loved ones are financially protected in the event of their death, but who may not want to make ongoing premium payments.
However, it’s important to note that single premium term life insurance policies typically have higher premiums than traditional term life insurance policies. This is because the insurer is receiving a larger premium payment up front, which helps to offset the risk of providing coverage for a longer term. Additionally, the policyholder may not have the flexibility to make changes to their coverage or renew their policy at the end of the term, which is another factor to consider when deciding whether this type of policy is right for you.
Single Premium Term Life Insurance – Overview
In simple words Single Premium Term Life Insurance policy is a term plan that covers the policyholder and his/her family. When you purchase a term plan, you get the assurance from your insurer that your family or nominee would get a particular sum assured as death benefit in case of your sudden death within the policy tenure. In return, you have to pay a premium for the plan which can be paid on a monthly, quarterly, semi-annually or on an annual basis. However, in the case of a single premium term insurance policy, it allows the insured to make the entire payment of the premium in one go as a single amount.
Key Benefits of Single Premium Term Life Insurance Plans
Here are some key benefits of term life insurance plans available with one premium:
- You pay a premium only once– Since you pay the entire premium amount in one go, you need not worry about paying the premium on a regular basis. You can just pay the total amount for your SP life insurance plan in one lump sum pay and relax. This way, the possibility of getting a policy lapsed is reduced
- Supports your family when you are not there – Under single premium term life insurance plans, you make the payment of the premium at one go. Hence, even when you are gone forever, you can be assured that the plan coverage would safeguard the financial needs of your family
- Single premium serves your purpose – The SP term life insurance ensures the security of your family in terms of finances during your absence too. So, you can ensure that the education, daily requirements and other necessary things are taken care of by the death benefit. All that the beneficiary of the plan requires to do is to claim the policy amount to get paid.
- Tax Benefits – Another benefit of this plan is that it allows the insured to enjoy tax benefits. So, you can enjoy tax deductions under Section 80C of Income Tax Act and thereby save over INR 1.5 lakh under this plan. Further, the benefit received by beneficiary is also tax free as per section 10(10D).
Top 4 Single Premium Term Life Insurance Plans in India 2025
Below are some of the single premium term life insurance policies that are offered by insurers in India:
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Best Single Premium Term Life Insurance Plans in Detail:
1. LIC’s Single Premium Endowment Plan
LIC being the most trusted brands in insurance business, offers one of the best single premium term insurance policies. The LIC Single Premium Endowment Plan is a remarkable investment option that allows the insured to pay the premium in one go for the complete duration of the policy.
Here are some of the benefits of the plan:
- The plan allows maturity benefit in the form of sum assured + reversionary bonus + final bonus in case of completion of policy tenure
- The plan provides death benefit to the nominee in the event of sudden death of the insured during the policy term
- In case of surrendering the plan, the insurer pays 70% of the paid premium back to the insured. And if the policyholder surrenders the plan within the first policy year, you can have 90% of paid premium back
- The policyholder can get a loan on the policy after the initial policy year
2. ICICI Prudential iProtect Smart Term Policy
For young professionals with dependents at home, it is best to opt for this single term insurance plan. This plan covers the insured completely against 34 terminal and critical illnesses including AIDS.
Further,
The insured is given the choice to avail death benefit as per their wish
You get tax benefits for the single premium paid towards policy as well as for the maturity received as death benefit
Further, you can get the policy with the option of MWP Act or Married Women’s Property Act by buying it online.
3. Bajaj Allianz Life Smart Protect Goal
This is a pure term life insurance plan that offer wide coverage on various variants to choose from, such as:
- Option of Life Cover
- Option of Increasing Life Cover
- Option of Extra Cover on Child Education
- Joint Life Cover etc.
Also, the policyholder can opt for return of premium benefit as a payback option to receive maturity benefit. The insured can also choose added coverage in the form of critical illness rider as well as rider against accidental disability for both partial and complete disability. Further, plans can be chosen that allow coverage till the insured turns 99 years of age.
4. HDFC Life Click 2 Invest ULIP
A renowned ULIP policy, Click 2 Invest is crafted to allow maximum benefits to the insured along with the death benefits and maturity benefit. The policyholder under this plan gets maturity benefits at the end of the tenure which is 105 percent of the maturity benefit along with extra bonuses. The policy has a lock-in period of 5-years. Once that gets over, it allows the insured to withdraw partial money if required.
Single Premium Term Life Insurance
Single premium life insurance plan is a good option for people who have access to a surplus amount of money and they want to put that into good use. So, if you have enough money and you are not sure about the premium payments on a regular basis, a single premium term insurance would be perfect for you.
Under single-premium life insurance, the insured is required to pay a single lump sum amount of money in one go to receive guaranteed death benefit in return. Thus, this policy requires that insured pay a large amount of money as a single payment, which may not be feasible for many.
Under a single premium life insurance policy, the insured makes the payment of the policy as a single lump sum amount as compared to paying on a monthly, quarterly or annual basis. Once the lump sum payment is made, the policy stays active throughout the policy term and the beneficiaries can get death benefit in case of sudden demise of the policyholder during the term of the plan.
Single premium term insurance policies cannot lapse because the premium of the policy is paid in full in the first go itself while buying the plan. So, the policyholder doesn’t have to worry about getting the policy lapsed or about missing out on premium payment.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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