Single premium policies are for people without regular income

Complete tax benefits will only come if the sum assured is at least 10 times the premium

In the past year, single premium life insurance policies have seen significant traction. Data from the Insurance Regulatory and Development Authority of India (Irdai) show that in September, individual single premium saw new business collection at Rs 3,098 crore, up 52 per cent year-on-year (y-o-y). This has been a trend in FY18. In the first two quarters, new business premium in this segment grew 26 per cent to Rs 12,831 crore, against Rs 10,180, a year ago. Demonetisation and a push by life insurers were primarily responsible for this growth.

Vighnesh Shahane, chief executive officer and whole-time director, IDBI Federal