As the name suggests, in a single premium policy, you pay premium only once while the benefits continue throughout the policy term. It's a one-time premium payment policy so you do have to pay premiums periodically. Besides, the premium that you pay is comparatively lesser than the premium paid in any other regular premium policy. Also one can avail tax benefits under section 80C of Income Tax Act.

Mostly, a single premium policy is considered by following people:

1. Those who are busy travelling and do not have time to pay premiums every month.
2. Those who have a large chunk of money and wish to invest it for a long term benefit.
3. Those who have a regular flow of cash.