Types of Insurance Premiums | Insurance Premium Payments in Singapore

Insurance

There is no such thing as a one-size-fits-all insurance policy. Similarly, when it comes to paying for our insurance plans, whether in the hundreds or thousands, there are bound to be different payment terms preferences. Some people may prefer to pay their premiums monthly, viewing them as recurring monthly expenses. Others may prefer to pay one-time bills each year. In this blog, we tell you about types of insurance premiums.

Types of Insurance Premiums

Premiums are the fees you pay for an insurance policy in order to receive coverage. Before we get into limited premium payment terms, here are some of the premium payment types available for insurance plans:

Single Premium

These are premiums paid once in a lump sum to enjoy coverage until maturity. Endowment and retirement plans are examples of insurance plans with single premiums.

Regular Premium Payments

must be made on a consistent basis, such as annually, bi-annually, quarterly, or monthly. This is frequently true of endowment, health, life, and critical illness plans.

Renewable Premiums

Renewable Premiums are premiums that you can pay to extend your coverage for an additional year. Renewal insurance plans include general insurance such as home, maid, and car insurance, as well as some health and term life insurance. You can either renew your policy or purchase a new one to continue receiving coverage. However, upon renewal, your premium may be revised based on your age and other factors.

Level term premiums – Types of Insurance Premiums

Your premiums tend to rise as you get older. However, with level-term premiums, the premium amount remains constant. They are available for life insurance plans and are based on factors such as your age and health. They are, however, not guaranteed.

Some policies also include a guaranteed renewable feature, which allows you to keep your coverage regardless of your health condition as long as you pay your premiums on time. However, these premiums can still rise due to a variety of factors.

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