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Term Insurance Calculator
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Single Premium Term Insurance is a life insurance policy where you make a one-time payment during the policy purchase to safeguard the financial future of your loved ones. Unlike regular term plans that require regular premium payments, this policy simplifies your financial planning by consolidating all premiums into a single payment.
Tata AIA
Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN:110N176V01)
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Table of Content
The single premium term insurance plan is one of the options under premium payment terms, along with regular premium pay and limited premium pay. The single premium term plan is a premium payment term, and a premium payment mode since you only need to make one-time lump sum premium payment to start enjoying your term insurance coverage.
By choosing a single premium term insurance plan, you can avoid the hassle of making regular premium payments towards your term insurance plan on a monthly, quarterly, semi-annual, and annual basis. This means your term insurance policy only needs a single lump-sum premium payment at the start of the policy term, and no other payments need to be made.
When you buy a one-time premium term plan, you and your family can start enjoying the life cover protection once the premium is paid and the policy coverage begins. However, there are also some other benefits that you should consider while getting a single premium term insurance plan. They are:
With a single premium term policy, you do not have to keep track of the upcoming policy premiums as you would have to with a regular or limited pay term plan. All you need to do is make the single premium payment and then continue enjoying the coverage until the end of the policy period. You do not have to be concerned about missing any premium payments since there is no future commitment to paying any premiums. This means there is a low risk of a policy lapse that could happen with a regular or limited period plan.
The one-time premium term plan offers tax benefits under Section 80C of the Income Tax Act, 1961, where the premiums paid on the policy will be tax deductible up to Rs.1.5 lakhs. Moreover, your nominees or family can also benefit from tax exemptions on the death benefit or maturity payout of the single payment term insurance under Section 10(10D) of the Income Tax Act.
Your family will start to receive life insurance coverage from the single payment term insurance plan once the premium has been paid. This means you do not have to risk your family’s financial security in case you miss a premium payment. Moreover, with a single premium term policy, you can also focus on other financial aspects and manage your financial planning better since you do not have to worry about any more premium payments. And in case of a misfortune, your family will be able to avail of the death benefit from the single premium term policy as soon as the term plan claim is approved.
Feature |
Single Premium Payment |
Regular Premium Payment |
Limited Premium Payment |
Payment Mode |
A one-time lump sum payment made at the start of the policy. |
Periodic premium payments (includes monthly, quarterly, annually) throughout the policy duration. |
Premiums are paid periodically, but only for a fixed, shorter duration within the policy term. (e.g., 5, 10, 15 years). |
Coverage Duration |
Coverage lasts for the entire policy term. |
Coverage continues as long as premiums are paid regularly throughout the policy term. |
Coverage continues for the complete policy term, even after premium payments stop. |
Best Suited For |
Individuals with a lump sum available who prefer to avoid the hassle of multiple payments. |
Individuals who prefer spreading payments over time. |
Individuals who can afford higher payments for a shorter period and don’t want to pay later. |
Policy Benefits |
No need to worry about missed payments; policy premium is paid up. |
Premium payment can be done regularly, but risk of policy lapse if payments are missed. |
Offers a balance between upfront premium payment and long-term coverage. |
Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V01)
TATA AIA
A single premium term insurance plan comes with several benefits. When choosing this premium payment option in a term plan, you should be in any of the following categories that ensure that you are at an advantage when paying a single premium:
As you may be aware, term insurance plans are quite flexible and hence, not only designed for those with a steady and stable income. Hence, if you are a freelancer or a businessperson who tends to earn a large sum of money periodically, a single pay term plan is a good choice for you. That way, you will not have to worry about making premium payments during a time when your business or profession is not profitable enough.
Regular pay term plans come with premium payment frequencies where you can choose to pay monthly, quarterly, semi-annual, or annual premiums. But for people who have hectic schedules and have a lot of other things to take care of, a single premium term plan works out since they do not have to keep track of the due dates or risk a policy lapse in case of missed premium payments.
A lot of investors, after making different investments, may have some amount left that they would like to invest. Moreover, if you inherit a lump sum from your family, receive a lavish bonus, or make a huge profit in your business, you can opt for a single premium term plan. Thus, not only is the money saved from being idle, but you can also protect your family with life insurance coverage by opting for a single premium term policy with a lump sum investment.
Why should one opt for a single premium term insurance?
One should opt for a single premium term insurance plan if they want to avoid the hassle of paying premiums each month or each year as per a regular payment plan. Also, if one does not have a stable income and wants to invest a large sum of money for life insurance coverage, a single premium plan is suitable for them.
Is it possible to first choose a single premium payment and then opt for regular premium pay?
No, if you have selected the single premium payment, then you will have to make one lump sum premium payment towards your term insurance policy. You may not be able to switch from one option to the other.
Does the single premium pay only apply to term plans?
No, a single premium payment option is available with different types of life insurance plans.
Will I have to calculate the premium for my single premium term plan?
There is a minimum and maximum limit set for your premium payments, and even in case of the single pay, there will be a minimum and maximum amount, depending on your sum assured. While you can use a term insurance premium calculator to understand your single premium payment amount, it is a more useful tool for those who need to plan their premium payments over the policy term or more than just a single payment.
What is the difference between Single Pay, Regular Pay and Limited Pay?
Under Single Pay, you need to make one lump sum premium payment towards your term plan at the beginning of the policy period. On the other hand, a Limited Pay plan enables you to pay the premiums for a limited and fixed number of years that is less than the policy term. As for Regular Pay, the premium payment term is equal to the policy term you choose.
Will I be able to get tax benefits on a Single Pay plan?
Yes, you can avail of tax6 benefits in a single premium term policy under Section 80C of the Income Tax Act. As per this section, your premiums paid towards the term plan will be eligible for a tax deduction.
Does a term insurance plan have cash value if it is surrendered?
No, a pure term plan does not have any cash value if it is surrendered. Hence, if you choose to cancel your term insurance plan, you will not receive any surrendered or term insurance with maturity benefit. However, without life cover, your family will be unprotected from financial uncertainties that could occur at any time.
Can I choose to have a Single Pay plan if I am a salaried employee?
Anyone can choose a Single Pay plan, irrespective of their profession. However, it is important that you are able to pay or have the means to pay the lump sum premium amount at the start of the policy.
How to file a claim for a term insurance plan?
If you want to file a claim with us, you can select any of the below channels –
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
Is a pure term plan with single pay better than a term plan with a return of premium?
You can choose a single payment term insurance that offers only life cover or a term plan with a return of premium as per your needs. The former is for those who are looking only for extensive life cover protection, while the latter is better suited for those who want a maturity benefit from their term plan.
How to choose a suitable term insurance plan for my family?
To buy a suitable term insurance plan for your family, you will have to take into consideration some important factors such as your present and future income, your family’s current needs and their future financial commitments and obligations, and any unforeseen emergencies or events that need financial assistance, the affordability of your term plan, the policy period, and the premium payment term.
How do I calculate my term plan premiums online?
You can calculate your term insurance premium online by using our term insurance premium calculator available on the official website of Tata AIA Life Insurance.
Can my nominee from outside India claim my term insurance on my death?
If the nominee wants to file a claim but is outside India, then they can file the claim online by uploading the attested copies of the required documents online or through email. On the other hand, if the nominee wishes to file the claim offline, then they can send their documents to their representative in India, who can visit our office and initiate the process.
Can an NRI purchase a term insurance plan in India?
Non-Resident Indians (NRIs) can purchase term plans in India, but they will have to present documents that show their proof of Indian nationality. They will also have to provide documents such as age proof and address proof that show they belong to a certain Indian state, city, or location.
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