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Term plan payment options
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19 Oct, 2020
by Abhishek
So my term plan expires next month and usually I used to pay the premium on a yearly basis but I am thinking of going with the monthly payment option. Why is there a difference in the premium by some Rs. 800 when I am choosing the payment option on a monthly basis?
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17 Feb, 2022
It is advisable to have yearly premium option as frequent payment like monthly pay might be a little more costlier then yearly premium payment option. secondly in case of payment bounce due to any reason let it be technical or personal probability of higher bank penalty charges on bounced payment may be levied.Thirdly chances of medical might arise in case it is delayed beyond specfic date of grace period.
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Normally insurance co extend some rebate on yearly / half yearly premium as the money come in advance & they earn some investment income. In a monthly mode that possibility is not there. So this increase is because of the withdrawal of that payment mode related rebate.