SACHA ADVICE. ACHA ADVISOR.
back arrow Back

Term plan payment options

reply Share
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?

like like
0
Purchase
Opinion

2 Answer

Post
19 Oct, 2020
Associate Professor, BIMTECH

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.

like like
0
icon-comment 0 Comments
icon-reply Reply
connect with advisor

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.

like like
0
icon-comment 0 Comments
icon-reply Reply
connect with advisor

Tired of dealing with call centers!

Get a professional advisor for life!

LIFETIME FREE

Rs. 1799

or

Discover the best tips for insurance every week!

Beshak is not regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and does not have any alliance or association with any Insurance business.
© Copyright 2022 Beshak Solutions Pvt. Ltd. All Rights Reserved.

Disclaimer: The content on the website is purely for information purposes for the public at large, and does not constitute personal financial advice for a specific individual reader.
If you are reading this, it means you love reading the fine print. Why not get paid for what you love doing - Join us by writing to info@beshak.org now 🙂