Single Premium Life Insurance: Save Hassle-Free

Insurance penetration in India has started to improve in recent years and is likely to cross 4 per cent by the end of 2017, as per a research paper released by ASSOCHAM. The insurance penetration which is the percentage of insurance premium with reference to the Gross Domestic Product (GDP), was at 3.3 per cent in 2014 and increased to 3.44 per cent in 2015.

Many barriers to adoption are being broken now thanks to a concerted effort being put in by the incumbent government and the regulatory agency which is Insurance Regulatory and Development Authority of India (IRDA).

Single Premium Life Insurance – For A Hassle-Free Investment

One such common misconception regarding life insurance and one that keeps people away from investing is that you have to keep paying premium for the majority or the rest of your life. The single premium life insurance, as the name suggests is a option most suited if you have idle money with you and are not willing to take the risk of paying premiums in the future or consider high risk investment alternatives such as mutual funds. It is a life insurance policy offering similar benefits and protection as you will get from a traditional life insurance plan.

Forget Keeping a Tab on Dates

A common deterrent for most people when they consider life insurance policies is the fact that the periodic payment of the premium amount is something that they don't want to commit to. With a single premium life insurance policy, they can make a lumpsum payment of the premium and leave all their worries aside. You no longer have to worry about remembering and complying with the different dates when you have to make your insurance premium payments.

Tax Benefits – You can be rest assured that investing in such a policy will not deprive you of the promised tax benefits that come with such a life insurance cover. For instance, you will be eligible for the tax benefits at the time of investment as prescribed in the Section 80C of the Income Tax Act as well as the Section 10 (10D) tax-related benefits at the time of maturity.

By incurring that one payment against your single premium life insurance, you end up creating an asset in the form of the life insurance policy without having to worry about managing your future wealth to keep provisioning for premium payments from time to time. Before investing in any such a policy, it is always advisable to read the terms and conditions in great detail to make sure everything is as per your needs only.