Transcription of the above video : Should I pay my insurance premium monthly?
Hello, Shailesh from Insurance Samadhan. You must be aware of the payment options and methods available to you while paying the premium amount – yearly, half-yearly, monthly, or quarterly. All these options are available in the form and we pay the premium according to our convenience. Different types of people choose different ways of payment – some may choose, some may choose annually, according to their convenience.
Now, in my opinion, I would recommend you to pay the premium ANNUALLY. If you are paying monthly, you are paying Rs 108 for the Insurance product of Rs 100, which is a huge loss. A product of 6% return and 8% expense rate, is making you receive -2% of return. If you are paying the same premium in half-yearly, you are paying 4% extra. If you are paying quarterly, you are paying 6% extra. So, while taking up the Insurance, always go for annual payment. Do not fall in the trap of choosing up monthly, half-yearly, or quarterly payments. Go for the annual policy, according to your budget. If you take any other mode other than the annual payment, there are high chances of Lapsation. Hope this piece of information was useful to you!