When you buy a term insurance policy, it is important to keep the policy coverage active for your family’s benefit. And to do so, you must make premium payments towards the policy.
An insurance policy, be it a term insurance plan or a savings plan, comes with different premium payment options. It is an important aspect of any insurance you will purchase.
For this reason, it is important to understand the different payment options available to you. The choice of the premium payment option can also impact your financial capacity in some ways. So, let’s understand what are the different premium payment options available to you and which one will suit you best.
Types of Premium Paying Terms
There are several ways to pay the term insurance premium:
- Regular Pay: This mode of premium payment aligns with the duration of the policy. It is the most opted-for method of premium