Single Investment Plan that offers financial protection with the potential to grow your money.
What is Single Investment Plan?
A Single Investment Plan is a one-time payment insurance policy whereby the policyholder has to make a single lump-sum payment to enjoy life cover for the entire tenure. It eliminates the need to make periodic payments and keep a regular track of the plan. It is like a ‘fire and forget’ missile. You just have to buy a single-premium term plan and forget about it.
A Single Investment Insurance is a one-time payment insurance policy that has been created for customers who do not want to endure the hassle of keeping a tab on the plan and making regular periodic payments.
This type of plan can be termed as a “fill it, shut it, forget about it” type of policy. Here, you make one large payment, become the owner of a single premium policy, and then forget about it until the term of the policy expires.
Benefits of Single Investment Plan
- No Future Obligations: It’s only the one time when you have to strain your finances for paying the premium once as a lump sum. After paying the premium at the commencement of the policy, you don’t need to pay any other premium amount under the policy. So, no worries after paying the one time premium.
- No Policy Lapse: A single premium policy comes with the one time premium option, which helps you to avoid the policy lapse and you don’t have to lose the policy benefits. As you have to pay the premium once, you don’t have to track the due date of premium payment. After paying the premium, you can enjoy the policy benefits through the entire policy tenure.
- Easy Liquidity: Most of the single premium policies offer an option to acquire the surrender value at any time during the term of the policy.
Loan Benefit: These types of policies provide an approximate 90% loan of insurance value, which you can use in fulfilling the financial obligations. Also, you don’t have to pay taxes on the loan amount.
- Tax Benefit: Under a single premium policy, the sum assured chosen should be at least 10 times the premium amount to avail tax-free maturity proceeds. The death benefit applicable is fully exempt from tax. In order to avail income tax deduction on premium amount, the single premium paid should not exceed 10% of the sum assured and the maximum exemption available up to Rs 1.5 Lacs during the year, you made the premium payment.