What is the Difference Between Single Premium and Regular Premium in ULIP

What Is Single Premium ULIP Plan?

What Is Regular Premium ULIP Plan?

Difference Between Single Premium ULIP Vs Regular Premium ULIP

Both single and regular premium plans offer great benefits if aligned with your financial goals and future plans. Given below are the key differences between the two:


Single Premium Plans

Regular Premium Plans


More convenient option as you do not have to worry about payment delays, inability to meet the payment deadline, etc.

You have to pay your premium instalments regularly within the due dates without forgetting. Therefore, it could be a hassle.


These are less affordable if you are not backed with a strong financial support to pay a large sum at once.

Regular payment plans are more affordable, as you have to pay smaller amounts at regular intervals.

Tax Benefits

As per Section 80C of the Indian Income Tax Act, you can get a tax benefit of up to ₹5 Lakhs only for the year you pay the premium.

In this option, you will receive tax benefits every year till the end of your plan’s tenure.

Premium Amount and Frequency

Since insurance policies are long-term investment plans, the total investment amount generally stays on the higher end.

You have to pay a smaller amount each instalment, but at regular intervals till the plan matures.


The risk is much higher as you pay a large amount of premium at once, exposing you to risks and volatile market conditions.

The risk is lower as you pay a smaller amount across a more extended period and benefit from the averaging cost of the market fluctuations.


Less customisable, as you may not be able to add rider options because of the fixed and one-time premium payment.

With regular premium options, you can add on benefits and increase your premium amount accordingly.

Maximum Returns

Less chance of discontinuation as there will be no payment miss. Hence, you will receive maximum returns.

If you fail to pay your premiums regularly, there is a chance of discontinuation within the first 5 years. Therefore, there is a chance of minimum returns.

From the above table, you can have a better understanding about how single and regular premium plans operate. So, if you have a secured cash flow from other sources, and want to secure maximum benefits for your loved ones in the future, opting for a single premium plan would be favourable. On the contrary, if you are looking for affordable premiums with added rider facilities, choosing the regular premium option would be wise.

Going through the difference between single premium and regular premium, you can gauge which type of ULIP plan suits your financial goals better. While one offers a guaranteed benefit of maximum returns, the other offers customisability and affordability.

Moreover, with regular premium plans, you can reduce exposure to market risks by paying smaller premiums. Therefore, before you opt for one, you must do a thorough research and assess your needs and goals to make a wise choice.

Frequently Asked Questions

What are the different ULIP investment options?


In ULIP, you can invest a portion of your premiums as life insurance and the other portion in any market based investment plan such as:

When should I start planning for my ULIP plan investments?

There is no hard and fast rule regarding when you should start investing in ULIP plans. However, it is always preferable to start them at an early stage to reap the maximum benefits as well as meet your financial goals.

Why is ULIP a dual benefit option?

ULIP plans are often regarded as a dual benefit option because from a single premium, it pays for your life insurance cover as well as lets you invest in a fund of your choice to generate higher returns and meet your financial goals.

When can I withdraw from my ULIP investment?

You can take out money from your ULIP policy after completing 5 years from the day of investment. However, in this case, you can only withdraw about 5% or less of your fund value, and it is tax-free.