RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Know All the Term Insurance Premium Payment Options

down-arrow
Know All the Term Insurance Premium Payment Options
October 04, 2023

Term insurance gives you a high coverage against risk of Life. It is economical and hence is gaining popularity. One of the factors before investing in a term insurance plan is to check the payment options. Insurance policies come with different payment options. Consider that before selecting a policy suited for you.

  1. Regular Payment Option-

    This involves paying the premium monthly, quarterly, half yearly or yearly and is the most recommended option. If you are a salaried person, paying premium together can burden you. That’s why periodic payments make sense. It also allows you to discontinue the policy once there are no liabilities and you believe that your dependents are financially independent.

    2. Mode of premium payment

    Amount of premium

    Payout

    Regular (Yearly)

    12,478

    1,00,00,000

    Single

    2,33,137

    1,00,00,000

    Limited

    13,076 subject to 35 years payment term

    1,00,00,000

    (Assuming for a 30-year old non-smoker male buying a term plan for 40 years)

  2. Limited Payment option-

    It’s a method where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a longer time. Its for two people- Those who don’t like paying for premiums for a longer period of time, and people who have seen a sudden rise in their income, like somebody who has been posted abroad for a few years for work or a businessman whose business is doing well lately. Limited payment option is also a good one for those who would be retiring before the term plan expires. In this case, there is no expense on the insurance post-retirement as the premiums are already paid. At the same time, the cover extends for a longer period even post-retirement. The premium that is paid, however, is higher than the premium paid in regular insurance policies

  3. Single Payment options-

    For instance- a 30 year old person pays an annual premium of Rs.10,000 for 30 years for a sum assured of Rs 1 Crore. That comes to effectively Rs 3 lacs for 30 years. However, a single premium on the same policy one-time for the same sum assured costs Rs 2.4 lacs. While this is less by Rs 60,000 inflation changes the value of the money significantly. So considering that the inflation is at 6%, the single premium of Rs.2.4 lacs amounts to Rs.13.75 lacs after inflation in 30 years. It means you are actually paying a lot more for the policy in terms of time value of money. This is something you must consider and make the calculations upfront before you decide which right product is for you.

HDFC Life offers its patrons the best plans in the Industry. Choose a term life insurance plan that is best suited for you and help secure your family’s financial future.

https://www.hdfclife.com/life-insurance-plans

Related Articles

CALCULATE PREMIUM

ARN: ED/12/19/17049

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Term Insurance and Life Insurance

Term Insurance and Life Insurance

The differences between term insurance and life insurance are explored, comparing coverage, premiums, benefits, and flexibility to guide informed financial decisions.

How to Choose the Right Term Policy Period?

Eligibility Criteria for Buying Term Insurance in India

Term Insurance Age Limit

Term life insurance age limit is the age range for buying a term plan. In India, you can start at 18 years, and the maximum age is usually up to 65 years.

Term Insurance Age Limit
What Is Renewable Term Insurance and What Are Its Benefits? Previous
Term Insurance for Millennials: Planning for a Secure Future Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches