What is it?
The Premium Payment Mode Calculator shows how much extra you pay by paying an insurance premium monthly instead of once a year. It shows the extra amount in a year and what that costs you as a yearly interest rate.
Who is it for?
Policyholders choosing monthly, quarterly or yearly premium payment.
How to use it
Enter the Yearly premium and the Monthly premium for the same policy from the quote. The answer appears as you type; there is no Calculate button. Tap Copy result to copy it, or Share on WhatsApp to send it.
Why monthly costs more
Insurers charge a loading for monthly, quarterly and half-yearly payments to cover collection costs and the interest they lose. A loading that looks small (like 4–5%) can be a high hidden interest rate, often 8–15% a year, because you are effectively borrowing part of the yearly premium.
Which to choose
Paying yearly is cheaper. If the monthly option costs more than you earn on savings, pay once a year. Set aside the monthly amount in an RD and pay yearly from it.
Good to know
For term plans, missing a monthly payment beyond the grace period can lapse the policy. If you choose monthly, use auto-debit.
Worked example
Yearly ₹24,000 vs monthly ₹2,080: monthly costs ₹24,960, ₹960 extra, which is a high hidden interest rate on money you effectively borrow.
Errors and how to fix them
- “Enter the yearly premium (more than 0)”
Open the tool: Premium Payment Mode Calculator
Still stuck?
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Questions, or an error not listed here?
Tell us in the comments: what you were doing, the exact message you saw, and your device and browser. We read every comment and add new fixes to this article.