Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Should you pay your insurance premium once or every year? Here’s a simple breakdown of single vs regular premium plans — with pros, cons, and when each one makes sense.
When you buy life insurance, you’re not just choosing how much cover you need — you’re also deciding how to pay for it.
Should you pay just once and be done with it?
Or spread the cost over years with manageable annual payments?
That’s the choice between single premium and regular premium — and picking the right one can make a big difference to your cash flow, flexibility, and financial future.
Let’s break it down in plain terms.
Both give you life cover, but they suit different needs.
Let’s say you’re 35 and buying a ₹50 lakh life cover for 20 years.
With a single premium policy, you might pay ₹1.5 to ₹2 lakh upfront — and you’re done.
No future payments.
No worries about lapsing due to missed deadlines.
This is great for people who have surplus cash, like a bonus, inheritance, or maturity amount from an old investment.
Think of it like buying your policy in full, just like you’d buy a car outright.
Now take the same ₹50 lakh policy, but you opt for regular payments.
Instead of ₹2 lakh at once, you pay around ₹7,000–₹8,000 per year for 20 years.
That’s much easier to manage if you earn a monthly income and don’t want to block a huge amount at once.
It’s like paying EMIs for a house — smaller amounts spread across time.
In pure math terms, single premium is cheaper in the long run.
Why? Because insurers usually offer discounts for paying upfront, and they avoid admin costs of yearly billing.
BUT…
That only makes sense if:
If you discontinue the policy early — especially in ULIPs or savings plans — you could lose part of that lump sum.
Go for a single premium plan if:
This works well for:
Choose regular premium if:
Regular premium is best suited for salaried individuals, freelancers, or anyone who wants to keep cash flow fluid.
You pay as you earn — just like your phone or broadband plan.
🧾 Feature | Single Premium | Regular Premium |
---|---|---|
Payment Type | One-time lump sum | Monthly, Quarterly, or Yearly |
Tax Deduction (80C) | Claim full amount (up to ₹1.5L) in one year | Claim each year as paid |
Best for | Surplus cash, short-term needs | Salaried people, long-term plans |
Flexibility | Low — fixed upfront | High — can modify, add-on later |
Many people buy single premium plans thinking they’re one-time investments. But beware:
Always read:
Here’s the truth: there’s no “best” option for everyone.
The key is to match your premium mode with your financial reality and future needs — not just go with what your agent says.
Because in the end, the right insurance plan is the one you can sustain, grow with, and rely on — no matter what life throws your way.