Life Goals Loading…

10 Blue cross

Notifications10

  • 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 Life Cover worth Rs.1 Crore at Rs.21 per day2 – Bajaj Allianz Life Smart Protect Goal

    CALCULATE NOW
  • Life Insurance Term Plan with Return Of Premium

    WATCH NOW
  • 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 sharing your details, A Sales 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

Have Us Call You
X

Terms & Conditions

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

Regular Premium Term Insurance Plan Explained

Regular Premium Term Insurance Plan Explained

Regular Premium Term Insurance Plan Explained


calender-blue

July 15, 2021

By : Bajaj Allianz Life

Life’s uncertainties can turn up when you least expect them. And while it is not easy to predict what emergency may crop up when, it certainly is easy to be prepared for such situations. If you’re wondering how this is possible, the answer lies in term insurance. It’s affordable, it offers a large life cover with several other optional benefits, and it can be customized as per your needs.

Let’s take a look at how term insurance plans work.

 

How Term Insurance Works

 

Term insurance plans offer you a life cover over the duration for which the plan is valid. In case of the life assured’s demise during this period, the death benefits guaranteed under the term policy are paid out to the nominee assigned. Being pure protection plans, term insurance policies are cost-effective type of insurance. You can get a higher sum assured in term insurance plans by paying comparatively lower premiums. If you’re unsure about the amount of sum assured you need, you can always make use of a term insurance calculator online.

Now, when it comes to premium payment, the duration over which you have to pay that premium can be customized. And based on the premium payment term, there are different types of term plans. In this context, the most common type is the regular premium term insurance plan. Let’s see what it’s all about.

 

What is a Regular Premium Term Insurance Plan?

 

A regular premium term insurance plan is simply a kind of term plan where the premium payment term is the same as the policy tenure. So, this means that you will have to continue to pay premiums from the date you purchase the policy to the date the policy term ends. Let’s look at an example to understand this better.

Say you use a term insurance calculator and see that you need a life cover of Rs. 1 crore. So, you purchase an appropriate term plan with a policy term of 30 years. If this is a regular premium term insurance plan, your premium payment term will also be 30 years. So, you will have to pay premiums to the insurer till the policy term ends (or till the insured incident occurs, whichever is earlier).

 

How does a Regular Premium Term Plan differ from a Limited Premium Term Plan?

 

As you’ve seen in the example above, in regular term plans, the policy term and the premium payment term plan are equal. These plans differ from limited premium term plans. In limited premium plans, the premium payment term is always shorter than the policy term. What this essentially means is that you need not pay premiums throughout the policy term. But your life cover will remain valid throughout the tenure of the policy.

Again, let’s look at an example to understand this. Say you purchase a limited premium term plan with a policy term of 30 years. But you will only have to pay your premiums for, say 20 years. Thereafter, you need not pay any premium for the last 10 years of the policy term, but you will continue to enjoy the benefits of the life cover. Here, the premium payment term of 20 years is shorter than the policy term of 30 years.

 

Benefits of Regular Premium Term Insurance Plans

 

A regular term insurance plan offers many benefits to policyholders. For instance, regular premium term plans give you the opportunity to spread the costs over several years, thereby reducing the financial burden. Also, the tax benefits on premiums are also distributed across the policy term.

 

When to invest in a Regular Premium Term Insurance Plan?

 

A regular premium term insurance plan may be suitable for you when:

  • You have a regular, fixed source of income like salary or rental income
  • You want more affordable premium payments, even if it means paying for a longer duration
  • You want to distribute your tax benefits across your earning years
  •  

    Conclusion

     

    That should make the details of regular premium term plans clearer for you. If you find that this kind of payment structure is more beneficial for your life goals and financial needs, make sure you purchase a plan accordingly.

    BJAZ-WEB-ECNF-01303/21

Bajaj Allianz Life Videos

Video Icon

Dancing Uncle Is Back | Special Bonus | Bajaj Allianz Life

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

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

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

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 67688888 (Call charges apply)

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

Find Us Online

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.