Last Updated on: March 12th, 2026
Reviewed by Kyle Wilson
Single premium insurance is a type of life insurance policy where you can make one large payment at the start of your policy. After that payment, the policy will remain active for life and for the term selected.
This plan does not require any monthly or annual payments, life insurance single premium plans required on the one payment to secure the coverage.
For example you pay $25,000 once, the insurance company provides life coverage and your beneficiaries will receive the death benefit when you pass away. This means that you never have to worry about missing payments or increasing premiums. A single premium life insurance policy can also build cash value overtime depending on the type of policy.
There are several types of single premium life insurance policies that are available in the market. Each one has its different benefits and features.
Single premium whole life insurance is one of the most common options. This type offers lifetime coverage and guaranteed cash value growth. With a single premium whole life insurance policy your one time payment can create a policy that stays active for life.
This plan also guarantees a death benefit, stable cash value growth, lifetime coverage and there are no additional payments required.
Whenever you are competing for single premium whole life insurance rates, the cost usually depends on your age, health and the coverage amount.
Another option is single premium universal life insurance. This type of policy provides more flexibility in how the cash value grows. The universal life insurance can allow interest based growth, flexible death benefits and adjustable policy features. People who want more control over their policy can often consider single premium universal life insurance.
Although less common,single premium term life insurance is also available in the market. This policy will provide coverage for a fixed time such as 10, 20 or 30 years.
With this plan you can pay on the one single premium and your coverage will last for the entire time. This option can be useful if you want coverage for a specific financial responsibility like a mortgage, children’s education or business loans. However once the terms and then the coverage will usually expires
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There are so many people who consider single premium life insurance because it offers so many financial benefits. Below are the benefits of single premium life insurance
Before choosing a policy it is very important to understand the single premium whole life insurance pros and cons.
| Pros | Cons |
| Lifetime coverage | Requires a large upfront payment |
| No ongoing premiums | Limited flexibility after purchase |
| Guaranteed death benefit | Possible tax considerations |
| Cash value growth | Not ideal for people with limited savings |
The cost of single premium life insurance rates depend on several factors. Insurance companies calculate the premium based on your age, health condition, coverage amount, policy type and life expectancy.
For example a healthy 40 year-old can have to pay a lower single premium insurance as compared to someone older or with health issues.
If you are comparing the policy it is always helpful to request a single premium whole life insurance quote for multiple providers.
Single premium insurance is not the right choice for everyone, but it works well for certain people. You can consider it if you have a large lump sum of money, if you want lifetime coverage without any future payments or you are planning for an estate or wealth transfer. You can also consider if you want a policy that builds cash value or you are preferring simple financial planning.
Single premium insurance is a life insurance plan where you can make one big payment at the start and your coverage will stay active for life. You don't have to make monthly or yearly payments.
A single premium means that you have to pay the full cost of the insurance, instead of paying small amounts overtime.
A single premium plan is a type of insurance where you make one payment to get coverage for life or for a set term . It is simple and long lasting
In Single Premium you have to pay once and coverage will last for life and in non-single premium you have to pay monthly, quarterly or yearly to keep the coverage active
With a Colonial Penn $9.95 a month usually gives you a life insurance policy that will pay money to your family when you pass away. This is a small payment for basic coverage.
Prices estimates taken from https://headstonemakers.com/
Senior Writer & Licensed Life Insurance Agent
Jazmine Cooke is a dynamic and insightful senior writer with a passion for life insurance and financial planning. With over 8 years of hands-on experience in the insurance industry, Jazmine Cooke has earned a reputation for delivering clear, actionable advice that empowers individuals to make informed decisions about their financial future. At Burial Senior Insurance, she not only excels as a licensed insurance agent but also as a trusted guide who has successfully advised over +1500 clients, helping them navigate the often complex world of life insurance and annuities. Her articles have been featured in top-tier financial publications, making her a respected voice in the industry.
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