Looking for an investment plans with tax benefits to investing a lump sum of money lying idle? Single premium plans are the ideal tool to consider in that case.
Unlike a traditional insurance plan wherein you need to pay a premium at periodic intervals, single premium plans are characterized with a lump-sum premium payment feature, which requires the policyholder to pay the one-time insurance premium. Single premium plans make up for a great investment coupe for those who want to make an investment without having to keep up with it at periodic intervals.
Single premium plans are known for their tax benefits. The investor is eligible to claim tax deductions under Section 80 C. The maturity benefit also qualifies for tax deductions under Section 10 (10D). However, single premium plans are not as flexible as life insurance; rather they are more popular as an instrument of investment and tax saving.
Know More About: How To Save Tax Under Section 80C
To help you understand better, we have elaborated on the top 5 single premium insurance plans based on the minimum sum assured.
Company | Insurance Plan | Policy Term (Years) | Age at Entry | Maturity Age | Minimum Premium (Rs.) | Minimum Sum Assured | Claim Ratio |
LIC | LIC Single Premium Insurance Plan | 10 and 20 | 90 days - 65 years | Min: 18 years Max:75 years | NA | 50,000 | 97.79% |
ICICI Pru | ICICI Pru Easy Retirement SP | 10, 15, 20, 25, and 30 | 18 - 80 years | 30- 90 years | 48,000 | 101% of single premium | 98.58% |
Kotak Life | Single Invest Advantage | 10 and 15 | For 10 year plan Min: 8 years Max: 45 years For 15 year plan Min: 3 years Max: 43 years | For 10 year plan: Min- 18 years Max- 55 years For - 15 year plan: Min- 18 years Max- 58 years | 3,00,000 | 10x Single Premium | 97.40% |
HDFC Life | HDFC Life Click to Invest ULIP | 5 - 20 | 30 days- 65 years | 18 - 75 years | 24,000 | 125% of single premium | 99.04% |
SBI Life | SBI Life Smart Wealth Assure | 10 and 30 | 8 - 60 years | Min: 70 years | 50,000 | 125% of the single premium | 96.69% |
The above mentioned single premium plans are elaborately discussed below.
LIC is one of the most trusted names in the insurance industry, catering to the insurance needs of the customers for more than six decades. LIC's single premium insurance plan serves as a life cover as well as a considerable investment option for those who want to invest a lump sum at once. The plan comes with the following benefits:
The ICICI Pru Easy Retirement SP helps you build a corpus for retirement at your own risk appetite. The plan comes with a minimum assured benefit and accumulated bonus on top of that. The plan also allows the investment of more money to the plan in the form of top-ups. The policyholder will also be allowed to choose between two fund options in equity and related securities, money market and debt.
The features of this plan are mentioned in the points below:
The guaranteed death benefit equals 105% of single premium plus top-ups.
The Kotak Single Invest Advantage is a single premium insurance plan that offers much flexibility to the policyholder to choose from among various funds for investment, and have access to the money after the completion of 18 years of age.
Some of the key features of the plan are listed below:
The HDFC Click 2 Invest ULIP combines the benefits of life insurance cover with investments. The plan is designed to maximize your investments while providing you benefits at maturity and payout to the nominee at death. The plan also offers as many as 8 fund options to the insured to choose from as per his/her risk appetite.
The key features of this plan are discussed below:
Written By : Naval Goel
Last Updated : May, 2021
The SBI Life Smart Wealth Assure is one of the best plans if you are looking forward to investing in a lump sum and maximizing your savings. The plan offers two funds to the insured for investment- equity fund and bond fund.
Let's take a look at the key features of the plan:
The policyholder will be paid the complete fund value as maturity benefit.
In the event of the death of the insured, the nominee will be eligible to receive the higher of the below-mentioned options as death benefit:
The plan also features an additional raider which comes with a minimum coverage of Rs. 25,000 and maximum coverage that equals the lower of:
Up to two fund switches, partial withdrawals and free look period are some other features of this single premium insurance plan.
You can select the single premium plan that meets your investment requirements. Before you purchase a plan, you can compare them side by side at a reliable third-party website. Buy your first single premium plan by comparing plans and choosing the one that best suits your long term financial goals.
Written By : Naval Goel
Last Updated : December, 2019
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