Limited Premium Insurance Policies

By | June 20, 2013
Usually for an insurance policiy, one has to pay premium till end of the policy term. For example, If policy has taken for 20 years, premium should be paid for 20 years. If premium payment is stopped before the said period, then policy will lapse.

Since many people do not want to commit for long term, they usually wants to stay from taking an insurance policy.

For those kind of people, the Limited Premium Insurance policies are suitable. Here, the Premium Paying Term (PPT) is usually less than the Policy Term. For example, if the policy is taken for 20 years, the premium ¬†shall be paid only for 5 or 10 years as per the customer’s choice. But insurance cover and other benefits lasts till 20 years and the policy will mature at the end of 20 years.

This is suitable for those who can’t foresee their income for long term and for those who do not want to commit for long term.

Most of the insurance companies offer this kind of policies in traditional endowment, term and ULIP plans.

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