Sabse Pehle Life Insurance

Sabse Pehle Life Insurance is a campaign by Life Insurance Council launched on 4th Dec 2019. The motive behind this campaign was to raise awareness about the importance of Life Insurance in Indian households and to encourage them to opt for a suitable life insurance cover. After the Association of Mutual Funds in India (AMFI) launched the Mutual Fund Sahi Hai campaign across the country, the Life insurance council launched this initiative.

Let us understand in detail what Sabse Pehle LIfe Insurance is all about.

Understanding the Concept of Sabse Pehle Life Insurance

According to IRDA’s Annual Report for FY20, India has a 3.62% insurance penetration rate, which is among the lowest in the world.

As per the general belief, there are several Indians who only buy life insurance for peripheral advantages such as tax benefits, without considering their needs and requirements.

To change this thought of Indian mass, it was imperative to create something influential in order to change the notion of Life Insurance Policy. Thus, with a combined effort of 24 life insurance companies, Life Insurance Council of India came up with the Sabse Pehle Life Insurance campaign. The campaign is actively reaching out to people to raise awareness about life insurance.

Moreover, the campaign has gained a broader reach among the Indian population through the means of digital & social media promotion, advertising, and media coverage in several regional languages.

Objectives of Sabse Pehle Life Insurance Campaign

1. To establish the importance of life insurance policies

   Sabse Pehle Life Insurance Campaign aims to raise awareness about the value and importance of life insurance among Indians.

2. To make life insurance easily accessible to the customers

   The Life Insurance Council can simplify and clarify the terms and conditions of life insurance policies by explaining them in an easily accessible way through this campaign.

3. To make the process simple

   The campaign aims to simplify the processes involved in purchasing insurance policies by emphasizing the importance of life insurance as a protective cover rather than merely a tax-saving tool.

What is Life Insurance & Why Is It Important?

Life insurance is a contract between the policyholder and the insurance company in which the company agrees to pay a predetermined amount to the nominee in the event of the policyholder’s death or after a predetermined period, in exchange for the insured paying the premium for a predetermined period.

Furthermore, a life insurance policy may be used as an investing vehicle, with maturity benefits available if you outlive the policy term. The money will help you achieve life’s milestones, such as your child’s further education or their wedding, and so on. A life insurance policy provides peace of mind in addition to financial security.

Perks of Having a Life Insurance Policy

Along with life coverage, a life insurance plan also offers several benefits to you & your family in case of any uncertainty such as death or disability. Read below to explore some of the benefits of having a life insurance policy:

1. Achieve your Life’s Milestone without burdening your pocket

   Having a life insurance policy helps in getting prepared for your life’s milestones such as planning your retirement, or financing the educational and various other needs of your child. Also, having a life insurance policy offers a financial cushion aiding financial independence post-retirement.

2. Insurance with savings

   Life insurance policies enable policyholders to develop the habit of saving money. Saving money over a long period of time allows you to establish a substantial corpus to satisfy your financial needs at any stage of life.

3. Loan facility

   Life insurance policies allow the policyholder to avail loan against their life insurance plan to meet any unforeseen situation.

4. Tax advantage

   Life insurance policies offer you the benefit of the tax deduction on payment of premiums and provide a tax-free sum assured under Section 80C and 10(10D) of the Income Tax Act, 1961.

What Are the Types of Life Insurance Policies?

1. Term Insurance

   It’s the most basic type of life insurance.The beneficiary will get the death benefit only if the insured passes away within the policy’s term. The insurance company is no longer obligated to provide benefits after the policy has matured.

   A term insurance plan is beneficial for people who wish to protect their family’s financial future while paying low premiums.

2. Know More About: Term Insurance

3. Whole Life Insurance

   Whole Life Insurance Plans stay in effect as long as the policyholder is alive and pays the requisite premiums. The plan pays the nominee an amount assured plus bonus (if any) upon the death of the policyholder. A whole life term policy might assist you in leaving a legacy for your children.

4. Know More About : Whole Life Insurance

5. Endowment Plan

   Endowment policies, often known as traditional life insurance plans, are a combination of a life coverage plan and a savings plan. In addition to life insurance, a policyholder can set aside money on a regular basis for a certain amount of time. If the insured lives longer than the policy term, the insurance company will pay him a maturity benefit.

6. Know More About: Endowment Plan

7. Child Insurance Plan

   A Child Insurance Plan is a combination of insurance and investment that protects your child throughout his or her life. It provides financial security for your child’s future requirements, allowing you to plan his or her future in the best way possible.

8. Know More About: Child Insurance Plan

9. Pension Plan

   Pension Plans aid you in financially safeguarding your post-retirement life. The benefits are paid out once a year or once once the policyholder reaches the age of 60 (depending on the insurer/policyholder). If the policyholder outlives the policy term, the plan provides a vesting benefit (maturity benefit).

10. Know More About: Pension Plan

11. Unit-Linked Insurance Plan (ULIP)

    Unit-Linked Insurance Plans combine investing and insurance into one package. In the same way, a small percentage of your money is used for life insurance, while the remainder is invested in the stock market.

12. Know More About: Unit-Linked Insurance Plan

13. Investment Plans

    A policyholder can use an investment plan to improve his or her savings by investing small sums (on a regular basis). Investing can be done on a weekly, monthly, or quarterly basis. One also has the benefit of insurance coverage in addition to the savings.

14. Know More About: Investment Plans

15. Money-Back Plan

    A money-back plan entitles the policyholder to a certain proportion of their sum assured at regular periods. This sort of life insurance is suitable for people who wish to invest while still having access to cash.

Conclusion

Having a Life Insurance Policy should be the foundation of your financial strategy. Before you consider other financial tools, be sure you’ve safeguarded and supplied for the people who mean the most to you. Securing your loved ones’ future with a life insurance policy will be one of the best gifts you can give them as it will financially secure them throughout their lives while you are there for them and even while you aren’t.