Hi guys,I dont quite understand what a recurrent single preium policy is.How is it different from a regular premium policy.
A recurrent single premium policy is more flexible. For a conventional regular premium policy, the policyholder agrees to pay a set amount of premium for a specified period in return for the benefits. If any premium is missed or changed then an alteration is needed to the policy to amend the benefits that will be paid. For a recurrent single premium policy, each premium is treated independently of the rest and buys its own benefits. This makes it much easier to pay different premiums in different years, eg moving broadly inline with a changing level of disposable income.
