5 Best Single Premium Insurance Plans in India

1. It is practical for individuals who lack a reliable financial flow or are too lazy to make a regular payment.
2. This plan works best for people who travel very frequently.
3. There is no requirement to keep track of and pay premiums by the due date regularly.
4. The tax advantages for single premium insurance and ordinary policies are essentially the same. The tax deduction for the premium paid is allowed by section 80C. The maturity benefit is tax-free under section 10 (10D). For single premium policies, however, the IRDA enacted new tax regulations in 2012 that stipulate that the premium cannot exceed 20% of the amount insured in order to qualify for the tax benefit.

When do you really require a single premium policy?

One insurance policy is offered by many different life insurance companies. Many of us choose to invest our money when we come across a sizable sum of cash. This could take the shape of an annual bonus, a payoff from an investment, or even an inheritance from family members. A considerable sum of money presents a wonderful opportunity for investment, and choosing one insurance plan is a wise course of action. When you file your taxes toward the end of the fiscal year, you can use this to take advantage of tax benefits. A maximum exemption of Rs.1.5 lakhs is yours.

Also, the main benefit of a single insurance plan is that you do not have to ever worry about your policy getting lapsed. As a large single amount has been paid as a premium for the policy, the plan will not require an additional payments to be made towards the premium. As this is the case, you will not have to ever worry about the policy lapsing due to a missed payment apart from other reasons.

Let us now take a look at the top 5 single insurance plans that are offered in India:

1. LIC's Jeevan Vriddhi: The Jeevan Vriddhi plan offered by LIC is a premium endowment plan that offers risk cover which is a multiple of the premium that is chosen by you. This plans offers a number of benefits with Loyalty Addition and Guaranteed Maturity Sum being the most evident ones.

1. Aegon Religare iMaximize Single Premium Insurance Plan: Reap investment benefits by making a one-time payment for this plan. Aegon Religare iMaximize single insurance plan provides 3 different choices of investment funds that helps in maximizing your funds. There are no allocation charges and therefore there are more funds that are made available for different investment purposes. You can chose to pick up this investment plan when choosing a life insurance policy as this plan doubles as an insurance policy.

1. ICICI Prudential iAssure Single Premium Insurance Plan: This endowment plan just requires one premium. Tradition is the main focus of this plan, which lacks any supplementary features. The other plans described here, and this scheme are comparable. You must pay a one-time lump sum in order for the insurance to remain in effect over the entire term. At the conclusion of the tenure and if the policyholder lives out the duration of the policy, a Guaranteed Maturity Benefit is given to them. However, in the event of an unexpectedly early death, the policyholder's nominee will receive the greater of the Guaranteed Maturity Benefit and Sum Assured.

1. Max New York SMART Steps Single Premium Insurance Plan: This is an endowment plan that is aimed at making the lives of children a lot better. It is mainly aimed at planning and providing for the financial needs of children.

1. HDFC Life Single Premium Pension Super: This is a ULIP policy that generates corpus over the term of the policy which would produce a post-retirement income.

Keep in mind that apart from financial stability, a single premium plan also offers tax benefits and is only available in the first year. You also ensure that you are making use of any lump sum of money that is lying around without just letting it rot in your piggybank. The number of different single insurance plans offered by insurance agencies is never lacking. You can also visit a policy aggregator website like bankbazaar.com to compare and check different policies and choose one that matches your needs and requirements perfectly.