Those with fluctuating income may opt for single-premium policies

If paying the insurance premium at one go means dipping into your savings, avoid it

Single-premium policies seem to be gathering traction. According to the July 2018 report of the Insurance Regulatory and Development Authority of India, the first-year individual single premium of private life insurance companies increased by 56.94 per cent, compared to July 2017. This is primarily because of substantial cost savings. “The major reason behind the growth in sales of single-premium policies is the lower premium rates they offer along with comparatively higher death benefits,” says Naval Goel, chief executive officer, PolicyX.com.

In case of life insurance term plans, a long-term product, premium payment term, and frequency of payment matter the most. The