Notifications10

  • Get Life Cover worth Rs.1 Crore at Rs.17 per day2 – Bajaj Allianz Life Smart Protection Goal

    CALCULATE NOW
  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

    WATCH VIDEO
  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

    KNOW MORE
  • Here's a Comprehensive Tool To Plan Your Child's Future

    START NOW
  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

    WATCH VIDEO
  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

    KNOW MORE
  • Paying your Renewal Premium is Quick and Easy!

    PAY NOW
  • Know the right amount of Insurance you need in just a few steps!

    START NOW
  • Avail Term Insurance Tax Benefits under Section 80D

    READ MORE
  • Know how to invest money during the covid-19 pandemic!

    READ MORE

Thanks for showing your interest. A representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead

X

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

banne-img banne-img

Upto 11% Discount* on first year premium

calci-img

Calculate Premium

icon-img

*,6 T&C apply | BJAZ-WB-EC-04303/23

×

*5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. | 5% Discount for salaried customers, applicable only on first year’s premium. | 1% Discount on online purchase is available for regular premium payment and limited premium payment frequency.

6Term plan is a category of Life Insurance

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116.

×

*5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. | 5% Discount for salaried customers, applicable only on first year’s premium. | 1% Discount on online purchase is available for regular premium payment and limited premium payment frequency.

6Term plan is a category of Life Insurance

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Term Insurance: Limited Payout vs Regular Payout

A term insurance plan is a contract between an insured and an insurer, where the policyholder is provided with a life cover or sum assured. In the case of the policyholder’s death during the term of the policy, the sum assured is provided to the nominee. In the case of surviving the policy term, the policyholder doesn’t receive any maturity, unless he/she opted for Return of Premium (ROP) plan. Term insurance plan can provide your family a financial safety net and is much required for protecting the financial future of your family. But to receive the life cover, a policyholder has to make periodic payments to the insurance company. This is known as a term insurance premium.

 

Different Term Insurance Payout Options

 

At the time of entering into the contract with the insurer or purchasing the term insurance plan, you have to specify the type of premium payment tenure. Based on the frequency of payments, you can choose various types of insurance premium payment tenures depending on the terms and conditions of the product. Some types of the premium payment terms are as below:

 

1. Regular premium payment:

This type of premium payment is one of the most popular options. You need to make payments throughout the tenure of the policy, at regular intervals. You can choose to make regular payments on:

  • Monthly basis
  • Quarterly basis
  • Semi-annual basis
  • Annual basis.

 

2. Limited premium payment:

In the case of the limited premium payment option, the premiums payment term is less than the policy’s tenure. Here, instead of making payments for the entire tenure, you are required to pay premiums only for a pre-determined period. For example, suppose you have purchased a term life insurance with a tenure of 15 years and opt for the limited payment option, you can be required to pay premiums for any specified period which is lesser than the policy tenure. Despite paying premiums for a shorter period, the coverage will remain intact till the end of the policy term.

 

Limited Payout vs Regular Payout

 

Let’s compare the features and benefits of limited pay vs regular pay in term insurance:

 

1. Premium payment duration:

The biggest difference between limited and regular premium plans is the duration over which you pay the premium. In a limited premium plan, the premium payment term is shorter than the policy term. In a regular premium plan, you need to pay the premium throughout the policy term.

 

2. Financial commitment:

If you compare term insurance limited pay vs regular pay, regular pay requires a long-term financial commitment on part of the policyholder. But for limited pay, since the premium payment is made for a predetermined time, the financial burden is limited to a short span of time.

 

3. Lapse of the policy:

If you compare term insurance limited pay vs regular pay with regards to policy lapse because of non-payment, then both policies won’t provide any benefit on getting lapsed. However, the chance of non-payment is comparatively lesser in the limited pay option as you need to make premium payments for a shorter tenure.

 

How to choose the suitable Payout Option?

 

Selecting the suitable payout option is contingent upon your coverage requirements and your existing financial capacity to make premium payments.

The regular payout option is best suited for individuals with a steady income source. A regular salary or stable income can allow you to make premium payments for the long term. If you are a salaried or self-employed individual with a steady income, you can choose to purchase a term insurance plan with the regular payout option.

When it comes to selecting the limited payout option, individuals, such as business owners with fluctuating income, individuals with a short career or close to retirement, can choose to purchase term insurance with this option. If you think that, given the constraint of your present employment or profession, you will not be able to make a long-term financial commitment, you can choose this option.

 

Conclusion

 

Thus, before purchasing a term insurance policy, you must consider its key aspects, including the options for premium payment term. You must compare the benefits of term insurance limited pay vs regular pay and then select the alternative which suits you. Always consider your needs and financial position while selecting from the options. This will ensure that you pay the premiums in time and successfully create a financial safety net for your loved ones.

BJAZ-WEB-EC-00221/22

media-icon media-icon media-icon
Popular Blog

Bajaj Allianz Life Videos

Play

Presenting Shubman Gill as The New ACE Of India | Bajaj Allianz Life | Bajaj Allianz Life ACE

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM (IST)

Saturday - 9:00 AM to 1:00 PM (IST)

Customer Care Helpline:

1800-209-7272

Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:

1800-209-4040

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91-20-35125850 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.