Premium Payment Term

Under life insurance policy, an individual can avail life cover for a fixed period of time in exchange of premium payments that are to be made over a period of a time. Premium payment term is the period of time or number of years/months under which the policyholder is required to make the premium payments for his/her life insurance policy. In most cases, the premium payment term is equal to the policy term of a life insurance policy. However, some insurance companies do allow the premium payment term to be shorter than the policy term.
For example, if you purchase a life insurance policy that provides coverage for upto 50 years, then the policy term for your life insurance policy will be 50 years and your premium payment term will be somewhere around 25 years. However, your insurance provider may allow you to pay premiums for 5,10 or 15 years.

There are several options of premium payment terms available for life insurance, you can choose a premium payment term according to your budget. Below mentioned are 3 different options f premium payment terms available for a life insurance:

1. Regular Pay: Under this premium payment option the policyholder is required to make premium payments equivalent to the policy term in different premium payment modes such as monthly, quarterly, semi-annually and annually.
2. Limited Pay: Under limited pay option, the policyholder makes premium payments for a pre-fixed period of time such as 5, 10, 12, 15 or even 20 years.
3. Single Pay: Under single option the policyholder pays the premium of a life insurance policy as a lump sum in one go.