Term Insurance with Limited Pay Option: Pay Less, Cover More

With this plan, you pay all premiums within a short, fixed period—such as 5, 10, or 15 years—while the coverage continues for the full policy term. If the insured individual passes away during the policy term, their beneficiaries get death benefits from the insurer. 

This premium payment option is ideal if you plan to finish paying the premium well in advance while enjoying the benefits of the whole tenure. It’s also an excellent choice for expatriates or NRIs — they can pay the premium within 5 years while enjoying the benefits of the entire term, even if they plan to go back to their native country.  It offers early financial freedom, reduces the burden of future payments, and ensures your loved ones remain protected for years to come.

Why is a Limited Pay Term Plan a Better Option?

Limited pay term plans are designed to reduce the financial stress that comes with paying the premium in instalments for a longer duration. With this limited pay term insurance, you can choose the limited premium payment duration while being covered for the entire policy duration. 

Mentioned below are the benefits of a limited pay term plan —

✅Pay Premium in a Short Period – The major benefit of the limited pay option is that it helps you pay the premium early on. The premium needs to be paid for a pre-decided and limited tenure, while the plan duration is longer. By opting for limited pay term insurance, you can pay off the premium during your active working years

✅ Savings Assured – Since you pay the premiums in advance, you can easily save on your premiums. 

✅Decreased Chances of Policy Lapse – Since you pay the premium for a pre-decided limited duration, there are lower chances of policy lapse. This way, you can avail yourself of uninterrupted coverage without worrying about the policy lapse.

✅Enjoy Extended Coverage – Since you end up paying premiums for only a limited period, you can opt for a coverage that goes into your retirement, offering coverage for risks for a longer duration.

How Does Term Insurance with Limited Pay Work?

To understand how a limited pay-term plan works, we would like to introduce Zhaviar to you. He does not have a regular salary — his income per month keeps fluctuating. He bought term insurance with a limited pay option. Here’s the rundown of the payment plans and savings on the premium he got when he explored buying plans at different ages. 

Key details to know:

• The plan is for 30 years 
• The amount will be paid annually

Who Should Buy a Limited Pay Term Plan?

The Limited Pay option in term insurance offers early freedom from premium payments. However, it’s best suited for specific situations.

• To Avoid Long-Term Payment Burden – If you prefer not to carry the responsibility of paying premiums for many years, Limited Pay can help. You complete your premium payments in a shorter period while staying protected for the full policy term
• Suitable for Those Buying a Long-Term Policy – Plans with coverage up to 80, 85, or even 99 years often require premium payments well beyond your working years. Limited Pay lets you finish paying before retirement, so you don’t have to worry about payments later in life
• For Those With Dynamic Work Environment – For those employed in a dynamic work environment, like artists, performers, or athletes, committing to long-term premiums can be tough. Limited Pay helps manage this by allowing you to pay during financially stable years

What Can You Do with the Saved Amount?

The amount you save by opting for term insurance with limited pay can be invested to achieve other future goals, including —

• Creating a retirement corpus
• Planning your child’s future education
• Planning for a business
• Setting aside for marriage

Our Tip For You: You can easily invest the amount you save on premiums in strategic investment-cum-insurance plans.

Where to Opt for Term Insurance with Limited Pay?

You can easily get term insurance with a limited pay option on Policybazaar.ae. The process is straightforward. Here’s what you need to do:

Visit Policybazaar.ae and go to the Term Insurance option in the Insurance tab.

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You will be directed to the lead form page. Fill in your personal details— name, contact number, and monthly income. Then, click on the View Plans tab. 

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You will be directed to the Quotes page. But before you can see the plans, fill in the basic details. Once done, click on the Submit button. 

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Click on the Limited Pay Term button. 

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You will find out the payment options. Choose the one that works for you. Once done, click on the Save Money Now button. From there, you can select the plan that meets your requirements. 

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