Sabse Pehle Life Insurance

Sabse Pehle Life Insurance

What is Sabse Pehle Life Insurance Campaign about?

It is important to ensure that you bestow a protective cover for the ones who matter in your life so that they can be financially equipped and stay worry-free when you are not around them. One such means of providing financial stability to your loved ones in your absence is by providing them with Life Insurance plan and this should be a crucial part of your financial planning as well.

In order to stress the fundamental need and importance of Life Insurance, all the 24 Life Insurance companies in India have joined hands to educate the people about their responsibility towards prioritizing on buying the life insurance plan. Named as “Sabse Pehle Life Insurance”, this campaign was recently announced by Life Insurance Council and has been launched with both digital and conventional mediums. Along with the aim of raising awareness of Life Insurance plan, this campaign also intends to encourage the investors to buy sufficient life cover for their family. The “Sabse Pehle Life Insurance” campaign is the very first collective mass media drive in India’s insurance industry and draws its inspiration from the mutual fund’s drive (Mutual Funds Sahi Hai) launched by AMFI.

Why Sabse Pehle Life Insurance?

Looking at the statistics and annual reports of the insurance industry, it was found that the penetration of life insurance has shown a downfall since 2009 (4.6%). Also, many people across the country buy Life Insurance for secondary benefits without even knowing how crucial it is in one’s life. And hence life insurance still remains at the back seat while most think it as only an investment option. The “Sabse Pehle Life Insurance” is an imperative step to educate the people about why having a life insurance policy is a must and also re-build the willingness to buy or invest in this long term investment option.

 

The campaign will be an encouragement factor for individuals to come forward and protect themselves and their family’s financial future. It will also shed some light on the benefits of life insurance policy in a seamless manner and encourage people to buy this plan not just as a tax-saving option but as a primary protection plan.

Do you have a life insurance plan?

If you still don’t have a life insurance plan, then you must surely buy one as it offers life protection to your family in your absence. A life insurance policy will take care of your family’s finances when you are not around.

Apart from the perks of financial security that the plan offers, a term life insurance plan also comes with other benefits of highest life cover for the lowest premium rates, long term protection, tax benefits and other add-on benefits and riders such as critical illness cover, accidental cover etc.

How to get Rs.1 Crore Term Life Insurance Cover?

It is highly recommended to go with a term insurance plan at an early age, as the sooner you buy, the cheaper you get. So, if you are planning to buy a term life insurance cover, it is suggested to go with enough amounts (Rs. 1 crore) that can help your family efficiently in your absence. When it comes to buying a term life insurance cover, there are various insurers who provide a cover of Rs. 1 crore. With the new regulations passed by IRDAI, the price of the premiums has dropped significantly for cover for Rs. 1 crore or more. To get more insights, into which insurer would be an apt option, you can visit the website of various web aggregators or insurance brokers such as Probus Insurance wherein you can compare with the various policies online and find the best which suits your needs.

While looking out for the 1 crore term life insurance plan, the selection might be quite tough, however, meticulously going through details such as plan benefits, inclusions and exclusions can make the task easier. Also, comparing premium rates, riders and claim settlement ratio of various insurers will smoothen up your task of deciding the right fit.

Let’s keep the most important thing, the most important thing: Sabse Pehle Life Insurance

As the campaign says “Sabse Pehle Life Insurance” which means “Life Insurance before anything else”, truly means that one must definitely consider buying a life insurance plan as the top priority investment plan. It is indeed important for the people to understand about this primary protection tool and realize the need to step ahead toward prioritizing life insurance plan as a fundamental necessity in their lives.

Life Insurance

OVERVIEW

A life insurance policy could offer pure protection (insurance); another variant could offer protection as well as investment while some others could offer only investment. In India, life insurance has been used more for investment purposes than for protection in one’s overall financial planning.

Pure Insurance Products

  • Term Plans

    There is only one product available which is called term insurance.Term insurance policy covers only the risk of your dying. You pay premium year on year to the insurance company and if you die, the insurance amount, called the Sum Assured, is paid out to the nominees. If you survive, you don’t get anything and lose the yearly premiums you paid.

    Since everything that you pay goes towards covering the risk on your life, term insurance is the cheapest. There are no investments clubbed with a pure term insurance plan.

    There is a variant of term insurance called term-insurance-with-return-of-premium wherein the premiums you pay are returned to you at the end of the policy term. The premium for such policies will obviously be more as compared to pure term plans.

Insurance-cum-Investment Products

  • As the name goes, these are plans that provide insurance and along with its return on investments.
    Endowment Plans Take a term plan and add an offer of some returns on the premiums you pay – that is an endowment policy for you. If you survive the policy term, you get the sum assured plus the returns and if you die during the policy tenure, you still get the sum assured plus some returns. To get these returns along with the life cover, you end up paying more premiums. Depending on fact whether or not insurance company shares its profit with the policyholder, there are two types of variants:
    Without-profit endowment plans: These plans do not participate in the profits the insurance company makes each year. Apart from the sum assured, you could possibly get a loyalty bonus, and which a onetime payout is made in appreciation of you’re sticking to the insurance company.
    With-profit endowment plans: These plans share the profits the insurance company makes each year with the policyholder. So they offer more returns than without-profit endowment plans and are more expensive as well – that it, for all parameters considered same, the premiums will be higher than without-profit endowment plans. If you know at the beginning what the profit is, then you have picked up an assured returns insurance plan and this in insurance parlance is called guaranteed additions. In case the assurance is shaky or not guaranteed, it is called bonuses. Bonuses are to insurance policies what dividends are to shares.

    Money-back plans Money-back plans are variants of endowment plans with one difference – the payout can be staggered through the policy term. Some part of the sum assured is returned to the policy holder at periodic intervals through the policy tenure. In case of death, the full sum assured is paid out irrespective of the payouts already made. 
    Bonus is also calculated on the full sum assured and not the balance money left. Because of these two reasons, premiums on money-back plans are higher than endowment plans.

    Whole-life plans Term plans, endowment plans and money back plans offer insurance cover till a specified age, generally 70 years. Whole-life plans provide cover throughout your life. Usually, the policyholder is given an option to pay premiums till a certain age or a specified period (called maturity age).
    On reaching the maturity age, the policyholder has the option to continue the cover till death without paying any premium or encashing the sum assured and bonuses.

    Unit-linked insurance plans (ULIPs) 
    In all the above mentioned insurance-cum-investment products, you have no say on where your money is invested. To keep your money safe, most of these products will invest in debt. Unit-linked insurance plans give you greater control on where your premium can be invested. 
    Think of them like mutual funds. The annual premium you pay can be invested in various types of funds that invest in debt and equity in a proportion that suits all types of investors. You can switch from one fund plan to another freely and you can also monitor the performance of your plan easily.
    There are various charges to be aware of in a ULIP and is suitable for those who understand the stock market well.

    Pension Plans
    Pension plans are investment options that let you set up an income stream in your post retirement years by giving away your savings to an insurance company who invests it on your behalf for a fee. The returns you get depends on a host of factors like how much you contributed and when is it that you started, the number of years when you want the money to come to you and at what age that starts.