Best Single Premium Insurance Plans in India
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.
To help you understand better, we have elaborated on the top 5 single premium insurance plans based on the minimum sum assured.
List of Top 5 Single-Premium Insurance Policies
CompanyInsurance PlanPolicy Term (Years)Age at EntryMaturity AgeMinimum Premium (Rs.)Minimum Sum AssuredClaim RatioLICLIC Single Premium Insurance Plan10 and 2090 days – 65 yearsMin: 18 years
Max:75 yearsNA50,00097.79%ICICI PruICICI Pru Easy Retirement SP10, 15, 20, 25, and 3018 – 80 years30- 90 years48,000101% of single premium98.58%Kotak LifeSingle Invest Advantage10 and 15For 10 year plan
Min: 8 years
Max: 45 years
For 15 year plan
Min: 3 years
Max: 43 yearsFor 10 year plan:
Min- 18 years
Max- 55 years
For – 15 year plan:
Min- 18 years
Max- 58 years3,00,00010x Single Premium97.40%HDFC LifeHDFC Life Click to Invest ULIP5 – 2030 days- 65 years18 – 75 years24,000125% of single premium99.04%SBI LifeSBI Life Smart Wealth Assure10 and 308 – 60 yearsMin: 70 years50,000125% of the single premium96.69%
The above mentioned single premium plans are elaborately discussed below.
LIC Single Premium Endowment Plan
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 plan comes with maturity benefit, wherein the maturity benefit is paid after the completion of the policy tenure. In addition to the sum assured, a reversionary bonus (as a percentage of sum assured) and final bonus (paid at once at the end of the policy term) is paid as a maturity benefit.The plan also includes a death benefit in the event of the unfortunate demise of the insured. The beneficiary would be paid only the sum assured in case the insured passes away before the commencement of the risk. If the insured passes away after the commencement of the risk, the beneficiary will be eligible to receive accrued bonuses as well.The plan also guarantees a specific surrender value for the policyholders which is equal to 75% of the premium paid if the policy is surrendered within the first year. 90% of the value of the premium will be paid as surrender value in case the policy is surrendered after the second year.The policyholders are allowed to take a loan on the plan after the first year of the policy tenure. Tax benefit under Section 80C and Section 10(10 D) is yet another advantage.
ICICI Pru Easy Retirement SP
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:
Under this plan, the policyholder will be eligible to receive an assured benefit which is equal to 101% of sum assured plus top-ups. To boost your sum assured, you can choose the Easy Retirement SP Balance fund or the Easy Retirement Secure Fund, depending on your propensity for risk.The plan also includes a death benefit for the nominee in the event of the death of the insured which is higher of the:The guaranteed death benefitThe fund value
The guaranteed death benefit equals 105% of single premium plus top-ups.
The policyholder is allowed to surrender the policy after the completion of the first 5 years. If the insured surrenders the policy after the completion of the first 5 years, the insured will be paid the total fund value without any charges. However, in case he discontinues the policy before the first 5 years, the fund value minus charges towards policy discontinuation will be deposited to the Discontinued Policy Fund Account subjected to the accumulation of interest at 4% p.a.The fund also comes with additional features like loyalty additions, free-look period, partial withdrawals, and pension boosters.
Kotak Single Invest Advantage
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 insured has the option to choose from five different fund options.The accidental death benefit is offered to the beneficiary in the event of an unfortunate demise of the policyholder. The beneficiary will be eligible to receive higher of:The fund valueTop-up sum assured105% of the premiumsPartial and systematic partial withdrawals, loyalty addition and 15-day free look period are some other features of the fund.
HDFC Life Click 2 Invest ULIP
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:
This plan provides maturity benefits to the insured on completion of the policy term which can be redeemed over a period of 5 years via the Settlement Option.The fund pays out a death benefit in the event of the unfortunate demise of the insured. The death benefit will be the highest of:Fund valueSum assured105% of the premium paidThe plan may be surrendered by the policyholder after the completion of 5 years of the policy wherein the entire value of the fund will be paid to the policyholder. If the policy is surrendered before the span of 5 years, the fund value minus discontinuation charge will be credited to the Discontinued Policy Fund which shall earn an interest of 4% p.a.The plan also comes with the option of partial withdrawal and up to 4 free-switches between funds.
SBI Life Smart Wealth Assure
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:
Fund value net partial withdrawals105% of the total premium paid
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.
Last Updated : December, 2019
Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
