Monthly vs Anuual Premium | 1 minute Insurance EP 29

When you pay annual premiums you save almost a month’s worth of premium there is a formula that the whole industry uses - annual premiums *0.9 becomes your monthly premium so that means when you pay the annual premium you’re almost saving almost a month’s premium. Because you’re paying upfront the insurance company gives you an extra discount and if the premium is large it does make a lot of difference. If your premium is a big amount maybe the money you end up saving can help you buy another term. When you’re buying a whole life policy and if you can afford it then I always suggest paying an annual premium. A lot of people ask what happens if you paid an annual premium and one month and you want to cancel it or somebody dies is then the insurance company would give you your money back on a prorated basis. If you feel like you can’t afford annual at this point then go for monthly.

[sourabhpatil]

Pay insurance premiums annually but save money separately for them monthly to avoid burden on them coming up.

[abhy]

Liked your approach maam. Would love to hear more from you

[Mahtab]

Dear madam,
Good day.

I have puchased the HDFC term insurance for 1 CR with return of premium.
After wathcing your video got impressed and need to do changes for pure term.

Is it possible to do or Not.

If not then what are the possibility for surrender the policy where I have less loss.

As of now so far I have paid 8 premium on monthly basis.

Kindly advice best possible availble means.

Thank you very much for cooperation and understanding in this regard.

[rahuljadhav-inwd]

If I pay my 1st year premium on a monthly basis and I die before completing 1 year. In that case how will the company settle my term insurance policy claim.