Best Life Insurance Plans From Top Insurers

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Best Life Insurance Plans From Top Insurers

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Paying a premium monthly, quarterly, half yearly and yearly is what we call a conventional mode of having an insurance policy. But, a single premium policy in way more better than any other normal policy, like it needs the insured to pay once and offers coverage throughout the chosen policy tenure.

Single premium policies are preferred over regular policies as it leads to substantial cost savings, apart from convenience. A normal person can save up to 30% when he chooses to buy a  Single Premium Policy instead of a regular plan. However, that's not enough, there are ample of more benefits than a single premium policy offers, such as:

  • Not to worry and keep a track about the premium due date
  • Most convenient for those who do not maintain steady cash flow, and unable to make a regular payment
  • A must-have for frequent travelers, as there are chances to miss the due date
  • People who are in their most productive years and can afford to make a one-time payment can take benefit of it in tough times

Benefit in Income Tax:  

The benefit of a single premium insurance policy is nearly similar to any other regular insurance policy in India. According to section 80(d) of the Income Tax Act, 1961, a premium paid for insurance is eligible for a tax deduction and under section 10 (10D), the maturity benefit is tax-free. But Insurance Regulatory and Development Authority (IRDA) issued new tax rules in the year 2012 for single premium policies according to which, the criteria for eligibility of tax benefit is that the premium should not be more than 20% of the sum assured.

For instance a life cover of Rs 1,00,000, the premium should not exceed Rs 20,000. If the premium is more than Rs 20,000, say Rs 30,000, the tax benefit under section 80(C) will be restricted to 20 percent of the sum assured. So, the tax-deductible amount will be Rs 20,000 (and not Rs 30,000). However, if the premium exceeds 20 percent of the sum assured, the tax benefit under section 10(10D) will not be applicable to the plan anymore.

If we talk about the glitches, due to the affordability factor, a single premium policy doesn't seem to work well for salaried individuals. Moreover,  it offers no flexibility in changing the coverage even if you are going through turning points of your life, like marriage or promotion at your workplace. So it's most recommended apt to get a single premium plan when you are married, a well-settled individual in your mid-30s.

One of the important points about single premium policy is that the fact that the tax benefit on this type of plan will be applicable just for the year in which you make a one-time payment. After which, there will be no more tax benefit as no subsequent contribution is made. Experts of the insurance sector say that's getting a life cover proves to be costlier but quite a tension free in single premium plans compared to the regular plans

Top 7 Single Premium Plans 2019

Moreover, despite these glitches, single premium policies continue to be a favorite among buyers. This is quite obvious as they are seen as a last resort of saving taxes at the end of the financial year. Well, we too agree that it is the best financial products with the dual benefit of insurance and investment. Here we are with a list of best single premium policy available in the market:

  • LIC Jeevan Vriddhi
  • Aviva Life Bond Advantage
  • IndiaFirst Smart Save Plan
  • HDFC Life Single Premium Pension Super
  • Bajaj Allianz New Risk Care II
  • Max New York SMART Steps Single Premium
  • ICICI Pru iAssure Single Premium 

Insurance Company

LIC

Aiva

India First

HDFC Life

Bajaj Allianz

Max New York Life

ICICI Pru

Name of the Plan

Jeevan Vriddhi

Life Bond

Smart Save Plan

Single Premium Pension Super

New Risk Care II

SMART Steps Single Premium

iAssure Single Premium

Type

Endowment Plan

ULIP

ULIP

Pension ULIP

Term Plan

Child ULIP

Endowment

Entry and exit age

8yrs to 50yrs

2 yrs to 65 yrs

5 yrs to 60 yrs

40 yrs to 75 yrs

18 yrs to 60 yrs

21 yrs to 50 yrs

3 months to 50 yrs

8 yrs to 75 yrs (for a 5 yr policy term)

13 yrs to 75 yrs (for a 10 yr policy term)

Policy term

10

10-73

15

10

5 – 40

10 – 25

5 or 10

Premium

Rs 30,000

Min- Rs 50,000  Max- No limit

Min- Rs 45,000

Max- No limit

Rs 25,000

Min- Rs 5,000

Max- No limit

Rs 50,000 – Rs 300K 

Rs 300K and above

Min- Rs 20,000 Max- No limit

Sum assured

Rs 1,50,000

Single premium x 5 (option A)

Single premium x 1.2 (option B)

Single premium x 1.25 (up to 45 yrs) 

Single premium x 1.1(above 45 yrs)

Higher of the two - Fund Value/ Single premium x 1.1

Min- Rs 2,00,000 Max- No limit

Single Premium x 5

Single premium x 1.25

  1. LIC Jeevan Vriddhi

You can say that LIC is the king of all single premium policies in the insurance sector. Among many successfully launched single premium policies in the market by LIC, we are here talking about Jeevan Vriddhi.  The guaranteed maturity sum assured on this plan depends on the single premium amount and the entry age of the insured. With 90% of the single premium paid back, the policy can be surrendered just after a year. Loyalty additions to the maturity benefit if the insured stays invested for a term as specified in the plan are few other benefits of the plan. The insured is also offered incentives by the company for higher single premium (up to 3%, when the premium is Rs 1,00,000). Moreover, a loan can be applied against this plan at an optimal interest rate.

Benefits:

  • Death benefit: On death, Basic Sum Assured shall be payable. The Basic Sum Assured shall be 5 times the Single Premium excluding extra premium if any.
  • Maturity Benefit: On maturity, the Guaranteed Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
  • Loyalty Addition: Depending upon the Corporation’s experience the policy will be eligible for Loyalty Addition on date of maturity at such rate and on such terms as may be declared by the Corporation.
  1. Aviva Life Bond Advantage

With one of the widest brackets for the policy term, LifeBond is a very flexible single premium ULIP. The premium starts with Rs 50,000 with no maximum limits. The insured becomes eligible for the tax benefits under the new IRDA guidelines, as the sum assured is 5 times the premium. Also most interestingly LifeBond Advantage is a great value for money. The plan comes with an inbuilt Accidental Death Benefit feature. After a lock-in period of 5 years, the insured can opt for systematic partial withdrawals with top-ups to earn additional life cover. The top-ups start with a minimum of Rs 5,000. But the string of benefits doesn't end here, the insured also gets to earn loyalty additions (4% of fund value) for staying invested for 10 years.

  1. IndiaFirst Smart Save Plan

IndiaFirst is well known across the country as one of the leading life insurers in India. The company is always in the headlines for designing new innovative insurance products. One such product is Smart Save plan, which boasted of a complete range of features. Although it is a ULIP with a fixed policy term of 15 years, the insured can make partial withdrawals as and when the need arises. In a choice of five funds with different growth potentials, it allows making the investment. To enjoy the freedom of switching from one fund to another the insured can allocate the premium proportionately among these five funds. The minimum sum assured is 125% of the single premium in case the entry age is 45 years or below and 110% of the single premium in case the entry age is above 45 years. The maximum sum assured is 500% of the single premium in case the entry age is 50 years or below and 110% of the single premium in case the entry age is above 50 years.

  1. HDFC Life Single Premium Pension Super

When we are listing any kind of insurance policy how can we forget to mention pension-related policy? Single Premium Pension Super is a Pension ULIP Plan. In the plan, the minimum sum assured is figured out as the higher of either two – fund value or at least 101% of the sum of all the premiums. So it's one profit for all for the policyholder or you can say the buyer. After a lock-in period of 5 years, the policy can be surrendered. The top-ups starting with a minimum of Rs 10,000 can be bought by the insured in order to enhance the existing coverage. With equity and debts, the investment is made in a way, so that it can maximize the potential of returns without exposing their funds to risk.

The following are the modes of the maturity benefit that can be availed:

  •    The 1/3rd amount will be paid as a lump sum and will not be taxable, the rest 2/3rd will be paid as a regular annuity and will be taxable
  •    The entire proceeds are converted to an annuity
  •    The entire proceeds are used to purchase another single premium health plan
  •    If you haven't reached the age of 55 yet, the policy term is extended
  1. Bajaj Allianz New Risk Care II

By paying a single premium, you get a cover for a specific term under the pure term plan of Bajaj Allianz New Risk Care II. The policy offers a high insurance cover at a very low premium, which has made it topped the list of one of the best single premium policies across India. As it's a pre-term plan, there are no maturity benefits which is the reason for the low premium. By opting for additional riders and benefits the cover can be enhanced. If the insured person opts for a high sum assured,  he gets to enjoy a discount in premium. The plan offers the insured the flexibility in choosing the sum assured and the policy term.

  1. Max New York SMART Steps Single Premium

To secure a child's future and make it bright, it is a must to include in the list of insurance policies, and nothing will be better than to invest in it, that too in a surplus amount. SMART Steps from Max New York is a Child ULIP offering the insured, liquidity and flexibility.  Frontline equity fund, dynamic floor fund, dynamic bond fund and so forth are few amounts a wide choice of funds the investment offers. Also, the insured gets to enjoy tax benefits under section 80C and section 10 (10D) along with regular maturity and death benefits. The policy offers the insured top-ups starting with a minimum of Rs 5,000. It also offers the facility for the buyer to avail partial withdrawals benefit for meeting unplanned expenses.

  1. ICICI Pru iAssure Single Premium

iAssure Single Premium offers a substantial risk-free return along with a life insurance cover, as it is an endowment plan. If unfortunately, the insurer dies during the policy term the beneficiary gets either sum assured or guaranteed maturity benefit, whichever is higher. Guaranteed maturity benefit is calculated taking into account factors such as premium amount, age, gender, policy term, sum assured multiple and the applicable reference rates, Guaranteed maturity benefit is calculated.125 percent of the single premium is the minimum sum insured, while the maximum sum assured is 500 percent of the single premium in case the entry age is 55 years or below and 125 percent of the single premium in case the entry age is above 55 years.

Conclusion

A single premium policy is highly recommended by the experts of the insurance sector, especially for business professionals. Few people might be habitual of collecting and making payments yearly. half yearly, quarterly or monthly, but for many of us, cash in and out might be an uncertain affair. For those spaying a lump sum amount for an insurance policy and enjoying its benefit when requires will be the best option available. We wish you all the best to choose the best policy of your need.