Single Premium Life Insurance – Get Free Quotes
When you are buying standard life insurance, you are making monthly or annual payments for the life of the policy. You are the owner of it but many things could happen in the meantime. That is why we usually buy a premium that is affordable but at the same time leaves as a certain cover in case something happens before we finish with paying it out completely.
Single premium is, on the other hand, a policy that is paid with a one-time payment. It works differently as you make a single payment to the insurance company and policy is yours. It is a great deal for those who are not fond of periodic payments and at the same time own some money that is lying idle.
As mentioned, when the single payment is made, you own your single premium life insurance with a specific death benefit (the one you agreed). It is the policy that you don’t have to worry about, as there are no other payments that you may miss that can affect the validity of your premium.
When should I think about buying a single premium policy and do I qualify?
Not every life insurance works for everyone. If you wish to be covered you could always choose the standard life insurance and pay your premium monthly. If on the other hand, you have money lying around, or you got some as a gift or inheritance that you don’t want to invest it in another way, then this policy is the right choice for you.
You can never know if you qualify for life insurance before filling out an application. It is usually a set of personal questions, such as information about your health history (your family history) and your lifestyle. In many cases, it even includes a medical exam. What will determine the risk is mostly your application. However, if you are denied or approved for the policy you want may differ from one insurance company to another. Not all companies underwrite the same, so choose wisely.
What are the benefits?
As being said, if you get a single premium life insurance, you don’t have to worry about the possibility of being late with your payments, which could cause the lapse of the policy. Also, when buying the policy you are locking the price. What it basically means is that you don’t have to worry about changing the price of a premium over years, which can happen sometimes when you are buying a regular life insurance policy.
Of course, the most important benefit is securing your life, which will cover the expenses you agreed on, in case something happens to you.
Find out some unclaimed benefits of life insurance, here.
Types of policies
There are two single premium life insurance policies that you can choose, depending on what you are investing in. Premium whole life insurance pays a fixed interest rate, which depends on the company’s experience and current economic conditions. On the other hand, if you prefer under performance more than the certainty of a fixed interest rate, variable life insurance policy could be the best choice for you.