Everything You Need to Know About the Sabse Pehle Life Insurance Campaign

After the Association of Mutual Fund in India (AMFI) launched the ‘Mutual Fund Sahi Hai Campaign’ across the country, the Life Insurance Council of India launched the campaign of ‘Sabse Pehla Life Insurance’ on December 4th, 2019. The campaign was initiated to motivate people about the significance of life insurance and to cover them with suitable life cover. Let us understand the campaign – life insurance sabse pehle in detail now.

What is Sabse Pehla Life Insurance Campaign?

The penetration of term life insurance coverage in the country is among the lowest as compared to other nations globally. The general perception about Life Insurance in India is that people should buy life insurance to evade tax, while it doesn’t give any importance to the life insurance needs of the country.

To change this thinking among Indians and to encourage more and more people about the need for insurance coverage, the Council of Life Insurance in India came up with this influential campaign in association with 24 other Indian life insurance companies. The campaign received far reaching awareness among people about life insurance policies in the country.

This campaign spread across the country via various means of social and digital media promotion in different Indian languages and aims to reach every household to gain wide reach.

Objective of launching Sabse Pehla Campaign

The Objective include:

• To make people aware about the importance of term life insurance policies among Indians
• To make term life insurance handy and easy to buy by the making terms and conditions simple and clear
• The campaign aims to make the process of buying term life insurance simple
• To emphasize on the importance of term life insurance  as a financial protection and not as a tax saving tool

Why is it important to buy Life Insurance?

Term life insurance is a contract between an insurer and a policyholder wherein the insurer agrees to pay a certain pre-fixed amount to the nominee of the insured in the event of policyholder’s death. In exchange the policyholder pays a certain premium to the insurance company.

It is important to have term life insurance coverage because it allows financial security to the insured and his/her family members. Not only the insured gets the security of life coverage, but the individual can also receive maturity benefit if he/she outlives the policy tenure. Further, life insurance policy offers mental peace to the insured and his/her family.

Benefits of having Life Insurance Policy

Below are the key benefits of having a term life insurance policy coverage:

• Term life insurance allow the policyholder to prepare for life’s milestones and achieve them without making a hole in your pocket
• It support you throughout the education of your children as well as your retirement
• It allow the insured to develop the habit of saving by investing a certain amount on regular basis to accumulate a corpus
• Term life insurance plans allow the insured to avail loan against the accumulated corpus to meet any crisis situation
• Further, term life insurance policies allow the policyholder the benefit of tax deduction on the premium paid under section 80C and 10(10D) of Income Tax Act 1961

What are the Different Types of Life Insurance Policies Available?

There are several life Insurance products available that can be availed by policyholders. These include typical term plans which only offer death benefit as well as the other plans offering both life cover as well as investment options. Here are some options of life insurance as mentioned below:

1. Term Insurance – As mentioned above, term insurance is the most basic plan of life insurance. Here the nominee of the insured gets sum assured as death benefit in the event of the demise of the policyholder. However, if the insured outlives the term plan, the policyholder pays no maturity at the end of the plan.

2. Whole Life Insurance –  Whole life insurance policies stay active as long as the policyholder stays alive and keeps paying the premium amount.  In return, the nominee of the insured receives a death benefit along with an applicable bonus upon the death of the policyholder. This policy suits those who want to leave a legacy for their children.

3. Child Life Insurance – A Child Life Insurance  plan is a combination of investment and insurance policy that protects the needs and requirements of a child throughout life. Starting from education to career and marriage, everything is taken care of by a child insurance plan.

4. Endowment Plans – Endowment or traditional life insurance plan, as it is commonly known, offers a combination of life coverage along with investment opportunities. Here, the insured receives maturity benefit if the person outlives the term of the policy.

5. Pension Plan – Pension plans ensure a peaceful retired life to the insured. These plans help the policyholder to accumulate corpus for his/her life after retirement when you do not have a regular income coming your way every month. Depending on the plan, a pension policy might provide a vesting benefit to the policyholder

6. ULIP – Unit Linked Pension Plan  – ULIPs are such plans which combine both insurance and investment products together within one package. Here, a portion of the money invested is used for life insurance, while the rest is invested in various lucrative investment policies.

7. Money-Back Plan – A money back plan allows the policyholder to receive a small portion of the sum assured as payout on a regular basis. This plan allow an individual to access cash while you are investing on a particular plan

8. Investment Plan – By investing a small portion of money in investment plans regularly a policyholder can save enough under a plan. The savings can be done by paying quarterly, monthly payment etc. Further, the insured receives the benefit of insurance along with the investment plan.