Single-premium life (SPL) is a type of insurance in which a lump sum of money is paid into the policy in return for a death benefit that is guaranteed until you die.
With single-premium life insurance, the cash invested builds up quickly because the policy is fully funded.
What is the difference between single premium and regular premium?
In the single premium plan, an insurer gets coverage for full term by paying premium amount in a lumpsum. Whereas, in regular premium ULIP plan, an insurer needs to pay premiums in intervals such as monthly, quarterly, half-yearly or annually for the policy.
What is single premium payment?
1. A single premium policy is a type of life insurance policy wherein a lump sum is paid as premium instead of the yearly, quarterly or monthly form of premium payment. 2. The minimum and the maximum sum assured is predecided and ranges between 1.1 times the single premium, to about 10 times the single premium.
What is a level premium?
Level-Premium Insurance is a type of life insurance in which premiums stay the same price throughout the term, while the amount of coverage offered increases.
What is a premium in life insurance?
A life insurance premium is a payment made to the life insurance company, to pay for a life insurance policy. Premium can also contribute to growing the cash value of a permanent type of life insurance. This term is also applied to payments remitted for annuity contracts both fixed and variable.