Should I Invest in single premium policy?

To be honest, it varies from person to person needs and convenience. However, the company may ask you for single premium policy as it is beneficial for them and from a recent survey it is clear that people move towards the single premium policy more as compared to the regular one. If you are a person who use to forget things then you must go for a single premium policy as you might forget the premium payment and your policy will get lapse. But it is always advisable to go for a regular premium policy as it is a better deal. Under the same, you don't have to make a higher upfront payment, allows you to avail tax benefits, long term advantage, saves on commission, and accurate cover as well.

Moreover, under single premium plans you pay upfront for the policy, but what if death occurs in the 5th year, premiums for 20 years would have been paid already. While the amount of premium paid is more with regular plans, keep in mind the time value of money.

I agree with the opinion illustrated above by the PolicyX that investing in a single premium policy or regular policy completely depends upon the requirements and comfort of the individual. Single policy premium can give a selected amount of benefit such as-

1. Maturity Benefits - If the insured person survives till the maturity period of the policy, then he/she is entitled to receive the benefit of full payment of sum assured and other reversionary and final additional bonuses.
2. Death Benefit - If policyholder met his death before the commencement of risk, then the single premium (ignoring service tax and extra premium) paid will be returned to the nominee of the insured. If death occurs after the commencement of risk, then the sum assured plus additional bonuses will be paid.
3. Income Tax Benefit - In regard to the section 80C and Section 10 (10D) of Income Tax Act, the policyholder can get the benefit over premium paid and claims received. Moreover, LIC single premium policy provides guaranteed surrender value where the insured have right to receive 70% of premium paid if the policy is surrendered during the first year. If the policy reaches its second year, then 90% of premium paid is given.

If you want to include your family members in your life insurance policy then you should go for other plans which suit your needs.