Single Premium Term Insurance in India 2025

What is a Single Premium Term Insurance Plan? 

A Single Premium Term Life Insurance plan is a special type of term insurance in which a policyholder is required to pay a full premium only one-time at the time of buying the policy, in exchange for life cover. This is different to a regular premium payment plans, as there you would have to pay premiums regularly to keep the plan active. 

The single premium term insurance payment makes it easy for the policyholder to get covered for the entire policy term without worrying about missing premium payments and ultimate policy lapses.

What is the Need for the Single Premium Term Plan in India?

With this type of term insurance policy, you can simply buy the plan and relax since you don’t have to worry about policy lapse due to the non-payment of premiums. It is suggested that you opt for a single premium term plan when you have an additional amount of money and are looking for the right insurance options to secure your family at affordable premiums. On the contrary, if a person is not sure about meeting the recurring demands of paying a premium, then a single premium term life insurance plan might be the right choice. 

What are the Benefits of Buying the Single Premium Term Insurance in India?

You can understand what is term insurance benefits for single premium term plans by taking a look at the following points:

• No Regular Premium Payments: The payment for the one time payment term insurance is hassle-free plan as you do not have to make recurring premium payments yearly or monthly.

• Affordable Plans: While the premiums for a single premium term plan may be higher than those of a regular term plan, they are much more affordable than those of any other type of life insurance policy.

• Removes Hassles: The single premium term life insurance payment process is simple, so you don’t have to remember the premium payment due date.

• No Fear of Policy Lapse: With the one time payment term insurance, there is no worrying about policy lapsing or termination of policy with a single premium term plan.

• Tax Benefits: You can claim term insurance tax benefits as per the prevailing tax laws with the single premium term insurance. 

What are the Best Single Premium Term Life Insurance Plans in India 2025?

Here are the single premium term plans available in India 2025:

*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

* You can estimate the premiums you would need to pay using the term insurance premium calculator in India.

What is the Difference Between Annual Premium Payments and Single Premium Payments?

The difference between annual premium payment and single premium term insurance is simple. With an annual premium payment, you pay a set amount every year until the payment term ends. In contrast, single premium term life insurance requires just one lump sum payment upfront, covering you for the entire term.

One time payment term insurance offer convenience as you only pay once, eliminating the need to remember annual payments and reducing the risk of policy lapses. Compared to regular or limited pay plans, this can be a hassle-free option, where missing payments can lead to policy termination.

Who Should Consider Buying Single Premium Term Life Insurance?

Single premium term insurance offers various benefits and is ideal for individuals in specific situations:

1. People With Irregular Income

   A single premium term plan is a great option if your income is not stable, like a freelancer or businessperson. By making a one-time payment, you won't have to worry about regular premium payments during times when your income might be lower or unpredictable.

2. People With Busy Schedules

   For those with hectic lifestyles, keeping track of regular premium payments can be challenging. A single premium term plan eliminates the hassle of remembering due dates and the risk of policy lapses due to missed payments.

3. Lump-Sum Investment

   If you receive a lump sum, such as an inheritance, a bonus, or profits from a business, buying a single premium term plan is a smart way to use that money. This approach not only keeps the lump sum amount from sitting idle but also provides life insurance coverage to secure your family's future.

How to Choose the Single Premium Term Insurance Policy?

Selecting the right single premium term life insurance policy can secure your family's financial future with a one-time payment. Here’s how you can choose the best one time payment term insurance:

1. Assess Your Coverage Needs

   Start by assessing your financial obligations, such as loans, children's education, and living expenses. Choose a sum assured that will cover these needs to ensure your family’s financial security.

2. Select the Right Policy Tenure

   Choose a policy term for your one time payment term insurance that meets your long-term goals. Consider how long your dependents will need financial support, and select a tenure that provides adequate coverage.

3. Compare Premiums and Coverage

   Use online tools like term insurance calculator to compare different single premium term insurance premiums. Look for a plan that offers a high sum assured, more benefits, and suitable features for the one time payment term insurance premium will pay.

4. Check the Claim Settlement Ratio

   Opt for insurers with a high claim settlement ratio. This indicates reliability and a good track record of paying out claims, which is important for your beneficiaries.

5. Evaluate Additional Features

   Consider policies that offer useful features and term insurance benefits like accidental death benefits, critical illness cover, or the return of premium options. Choose the features that meet your needs.

Wrapping it Up!

Choosing a single premium term insurance plan involves understanding your financial needs, comparing options, and selecting a trusted insurer. With careful consideration, you can find a one time payment term insurance that offers peace of mind and financial security for your loved ones.

Note: Check all the best term insurance plan in India.