Do we have to renew Term insurance every year! or is it a one time payment!

POSTED BY avi ON November 1, 2010 9:06 am COMMENTS (3)

3 replies on this article “Do we have to renew Term insurance every year! or is it a one time payment!”

  1. rakesh says:

    Manish,

    Incase of yearly premium the rate is lesser than quarterly premium.
    Moreover it is easy to manage your finance this way, it works for me.
    Incase of one time payment there is a risk. Suppose I take a term plan for 25 yrs and opt for one time premium payment of say 1 Lakh, however if i day in the 3rd year then i would loose on the premium amount. However if i opt for yearly premium of 7k then i can invest the balance amount in MFs where i can get good long term gains.

    Rakesh

  2. rakesh says:

    Avinash,

    We have to renew TERM insurance every year, unless you have opted for one time payment in which case the premium will be very high. It is always better to opt for yearly premium.

    Rakesh

    1. Rakesh

      Why is it better to choose yearly premium always ?

      Manish

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