How many of us know the details about the life insurance policy premiums? Insurance premium is the set amount of money that the person pays to the insurance company at regular periodic intervals of time.
Do you know that there are discounts available on these premiums? Depending on the sum assured, mode of payment and periodicity of payment the discount or rebate on the premiums vary. Most insurance companies offer good amount of rebate for higher sum assured, for premiums that are paid in one shot (annually rather than monthly or quarterly) and for premiums paid online. Since the service cost of the policy for the company is considerably reduced, these rebates are offered to the policy holders.
Are there are tax benefits for the premiums? Yes! The premium that you pay can be claimed deduction under section 80C if the life insurance premium is for yourself, your spouse or your children but not for any other family member.
In case you miss to pay the premium on or before the due date, it will lead to the policy getting lapsed and you might end losing the benefits of the policy. Most companies do allow some grace time beyond the due date for the premium payment.