Life insurance is a crucial part of financial planning as it ensures that our loved ones are financially secure in the event of our untimely demise. Life insurance premiums are charged to provide coverage against the risk of an uncertain event, and it is important to pay them regularly to keep the policy active. However, the question that often arises is whether one needs to pay all the premiums at once or if there is any flexibility in payment. In this blog, we will answer this question and explore a life insurance plan that offers flexibility in premium payment.
What are premiums?
Life insurance premiums are charged by insurance companies to provide life cover to the policyholder. The premiums are determined based on various factors such as the age, health, and lifestyle of the policyholder, the amount of coverage, and the duration of the policy.
Can I pay my Life Insurance Premiums at Once?
Most life insurance policies offer various payment modes, such as yearly, half-yearly, quarterly, or monthly. The premium payment mode can be chosen as per the policyholder’s preference. Generally, it is recommended to choose a premium payment mode that is manageable and doesn’t become a burden on your finances. Some plans also offer a limited premium payment mode or a single premium payment mode. Choose your premium paying frequency as per your financial horizon.
Pay As You Like with Canara HSBC Life Insurance iSelect Guaranteed Future
The Canara HSBC Life Insurance iSelect Guaranteed Future Plan is a great option for those looking for flexibility in premium payment. The ‘Pay As You Like’ feature allows you to choose your premium payment frequency.. This feature is ideal for individuals who may not have a steady income or who cannot commit to paying a fixed premium amount every year. You may pay the premiums for 5,7, or 10 years– in accordance with your financial goal.
Other features
Apart from the flexibility in premium payment, the plan also offers several other features that make it one of the best saving plans. Let’s take a closer look at these features:
- Gift of Guarantee: This feature ensures that your family receives a guaranteed payout in case you pass away. The payout amount is predetermined at the time of buying the policy and is paid out irrespective of market conditions. This feature provides peace of mind as you are assured that your family will be financially secure in your absence.
- Boost your Maturity Benefit: With this benefit, during the last five years of the policy, guaranteed additions accumulate to increase the benefits of your policy.
- Payor Premium Protection Cover: If you pass away during the policy term, the premiums are waived off, and the policy remains active. This feature ensures that the policy remains in force even if you are not there to pay the premiums.
- Tax Benefits: The Canara HSBC Life Insurance iSelect Guaranteed Future Plan offers tax benefits under sections 80C and 10(10D) of the Income Tax Act, 1961. The premiums paid towards the policy are eligible for tax deductions under section 80C, and the maturity benefit received is tax-free under section 10(10D). This feature helps the policyholder save on taxes and maximize their returns.
It is a good plan that offers flexibility in premium payment and several other features that make it an attractive option for anyone looking to secure their financial future. You may check out the website to know more about the plan.