Which is better Single Premium Or Yearly Premium for Insurance Plan.


Recently, I was researching about the term insurance plan that would fit to my pocket and also i would able to pay it on financial status.

As I have some insurance policy of LIC, I believed to go with them for term plan too. then i have found one plan that good for mine.

Product Number : 190
Product Name : Amulya Jeevan

and as per my requirement, i need 30 lacs insurance for my life ..and need for 20 years .

And after researched about this policy with my requirement and years, firstly i found that single premium option is good and looked nice ..but ..think ..more ....


think ..more ..


i have to pay 77,700 as single premium and i have not bother about premium, i insured with 30 lacs for next 20 years ..and its nice ..

also second option for yearly premium, i have
to pay 6900/- rs for next 20 years so if you calculated howmuch you would pay after 20 yrs then you have to pay 20*6900 = 138000

So you would think ..instead of paying 138000 for 30 lacs.20 year, you would think that 77,700 single premium would work better ...and you would go with this ..is'nt it ? but you should not go ..

i will explain you why is yearly premium is better than single premium for my case and even better for your too ..
Lets think that instead of paying 77,700 as single premium for your policy, do one thing
As per current FD(fixed deposit) is 10.25 % and even for senior citizen is 10.75% *( could be different for others bank .i am disclosed bank name here)

Lets take you would get minimal 9% for FD and if you put your 77,700/- on FD after deduct your first year premium 6900/- , it would 70,800 and put on FB ..so after one year, means on second year when your yearly premium time is come ..your FD would be 77,172 and give your 6900 from this amount and keep remaining 70,272 rs on FD ..and continue follow this process ..

Did you think ..what are benefit of this ?

1)Your 77,700/- rs would not block ..
2)You could stop policy any time ..and you would not lose any money or minimal money
3)You would easily pay yearly premium from FD , not from salary
4)Any time, in future if you need money ..you could stop FD and get all money ..and use it ..


And you could get maturity amount in term insurance plan that wont possible, wont offer in any insurance company ..

Enjoy this my first personal finance blog :)

Thanks


Comments

Post a Comment

Popular posts from this blog

Step by step guide on how to pay Income Tax that is due

Image
1. Select Challan 280 Go to the tax information network of the Income Tax Department and select Challan 280. Click here to go to the government website and pay your tax 2.Enter Personal Info For individuals paying tax, select  . Please choose the Assessment Year correctly  . Choose   if you are paying taxes after the Financial Year has ended. View mandatory fields to be filled in Note:  Choose "(100) ADVANCE TAX" if you are paying taxes during the financial year. Choose "(400) TAX ON REGULAR ASSESSMENT" if you get a demand notice from the Tax Department. 3.Double check info You will be redirected to the net banking page. Double check the information entered here and enter the income tax amount to be paid in the income tax field. Tip:  You can leave surcharge, education cess, interest and penalty blank. 4. Check Receipt (Challan 280) This is your Challan 280. You will be able to see details about your payment on...
Read more

Simple way producer–consumer problem's implementation in NodeJs

Problem Name :  Producer-Consumer Problem (Also Known as Bounded Buffer Problem ) Goal :  It's explain you "multi-process resource synchronization problem". Problem Statement :  there are many producers and many consumers, the work of producer is to generate/produce things/jobs/items any things and the work of consumer is to consume things/jobs/items/any things produced/generated by producer. What is the NodeJs ?                   Node.js is a platform built on  Chrome's JavaScript runtime  for easily building fast, scalable network applications. Node.js uses an event-driven, non-blocking I/O model that makes it lightweight and efficient, perfect for data-intensive real-time applications that run across distributed devices. Code : var express = require('express'); var app = express(); var queue = []; //Default Handler app.get('/',function(req,res){ res.send('Producer/Consumer Server');...
Read more

Rajiv Gandhi Equity Savings Scheme

    (I) Introduction to Rajiv Gandhi Equity Savings Scheme, 2012 1) What is Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS)? With an objective to encourage flow of savings of the small investors in domestic capital market, the Government of India announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS). 2) Does RGESS offer any tax benefits? A new section 80CCG under the Income Tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ has been introduced to give tax benefits to ‘New Retail Investors’ who invest up to `50,000 in ‘Eligible Securities’ and have gross total annual income less than or equal to Rs.10 Lakhs. 3) Who is a ‘New Retail Investor’? A ‘New Retail Investor’ is any resident Individual  ü who has not opened a demat account and has not made any transactions in the equity or derivative segment as on the date of notification of the scheme i.e., November 23, 2012. OR ü ...
Read more