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What are Term plan premium payment modes – Which is good

Term plans are pure Life Insurance plans which is good for those who seek high-value insurance cover. A person traveling frequently, High net worthy individuals, Company CEOs, Directors etc., can require Life insurance cover in Crores due to their employment and status. For those people, Term Plans are a big relief.

Term plans come with many riders like Double Accident cover, Critical Illness rider, and premium waiver benefit rider. Along with basic insurance cover premium, if any proposer chooses any of the riders, then the particular rider premium would be added to the premium.

GST is applicable on all premiums. The GST would be 18% of the total premium.

There are many types of modes available in the term plan.

They are :

Regular premium,
Limited premium
Single premium and
Return of premium.

Regular premium,

The policyholder has to be the premium till the end of the term. Policyholder lives till the end of the term, no premium would be paid back.

Limited premium,

The Policyholder has to pay the premium for a limited period like for 5 yrs, 7 yrs, and 10 yrs. After that no payment for the rest of the term. No returns of premium at the end.

Single-Premium

Premium to be paid one time. Term plan coverage would continue till the term ends.

Return of premium (RO),

Premiums to be paid like regular premium. The policyholder may get back the premium paid after deducting GST and other rider charges.