Sabse Pehle Life Insurance Campaign: Explained

2-August-2021 |

Insurance is a tool for risk management. It compensates for the losses that you might suffer due to unforeseen contingencies and, as such, gives you financial security.

When it comes to life, the risk of premature death has financial implications. Imagine the financial repercussions that the family would face if the breadwinner dies prematurely! That is why there is a need to create a financial provision against the risk of early death and this is where life insurance comes into the picture.

Life insurance is an important risk management tool that should be a part of your portfolio. But how many individuals invest in a life insurance plan?

If numbers are to be believed, life insurance penetration in India is pretty low. According to the Economic Survey 2020-21, insurance penetration in India stood at a dismal figure of 3.76% in the year 2019. Life insurance penetration, on the other hand, was 2.82% compared to 2.74% in the year 2018. Even though India has the second-largest population in the world, why do you think the numbers are so low?

The primary reason for such low figures is a lack of awareness. Many people do not understand the importance of life insurance, so they do not invest in it. Thus, to raise awareness for life insurance in India, the Life Insurance Council launched the ‘Sabse Pehle Life Insurance’ Campaign on 4th December 2020.

What do you think the campaign is all about? Let’s understand.

 

What is the Sabse Pehle Life Insurance Campaign?

Sabse Pehle Life Insurance translates to “life insurance before everything”. The term was coined by the Life Insurance Council to underline the importance of life insurance. The term highlights the fact that life insurance should be the first level of financial defense against unforeseen emergencies.

The Life Insurance Council launched the campaign with the tagline to promote life insurance coverage. To promote financial well-being among individuals, all the 24 life insurance providers of the country joined hands, and the campaign kicked off.

Why was the Sabse Pehle Life Insurance drive needed?

While motor insurance has been made compulsory in India, life insurance is voluntary. However, life is unpredictable. While you might be fit and fine today, you never know what tomorrow would bring. Even the current pandemic is the witness of the unpredictability of life.

Despite the need for life insurance, its demand is low. In many cases, life insurance is merely purchased as a tax*-saving plan. People do not pursue life insurance because they feel it does not multiply their money as other investment choices can. However, that is not what insurance is for!

Thus, the Life Insurance Council launched the Sabse Pehle Life Insurance campaign to get the Indian insurance penetration level competitive against the global average penetration of 7.23%.

 

Objectives of the campaign

The main objectives of the campaign are:

  • Busting myths relating to life insurance

  • Driving life insurance as a protection tool, not merely an investment and tax*-saving tool

  • Creating awareness about life insurance among the masses

  • Driving the penetration of life insurance in India

 
Why do you need a life insurance policy?

While the campaign is doing its duty to raise awareness, you should know the importance of a life insurance policy. Here are some reasons that highlight why you need a life insurance plan in your financial portfolio -

  • Financial protection

    The first need of a life insurance plan is to protect against the financial loss suffered due to premature death. While you cannot control death, you can control the financial repercussions that it might cause your family. By investing in an online term insurance plan you can eliminate the financial loss suffered due to death and secure your family’s finances.

 

  • Fulfillment of financial goals

    Besides term insurance, different types of life insurance policies can help you fulfill the different financial goals you have. While a term policy is a pure protection tool, other life insurance plans also allow a saving element. This helps you create a corpus for your financial goals. Have a look -

 

Types of life insurance plans

Brief description

Which financial goal is fulfilled?

Whole life plans

Plans that cover you for your whole life

Income replacement and protection

Endowment plans

Plans with a guaranteed1 death or maturity benefit

Creation of a guaranteed1 savings corpus

Money-back plans

Plans that give guaranteed1 periodic pay-outs and a death benefit

Protection and liquidity at guaranteed1 intervals

Unit linked plans

Market-linked plans that provide investment returns and protection

Creation of a market-linked corpus with insurance protection

Child plans

Plans that create a secured corpus for the child even if the parent is not around

Child planning

Pension plans

Plans that create a retirement corpus and also guarantee1 lifelong incomes post-retirement

Retirement planning


So, you can choose different life insurance policies to fulfill your respective financial goals.

  • Cost-effective

    The premiums of life insurance plans are low compared to the protection that the plans provide. For example, the term plan premium is a fraction of the coverage that it provides. Thus, by investing affordable amounts in a life insurance policy, you can create a substantial financial corpus for yourself as well as your family.

 

  • Tax* saving

    Life insurance plans also help in saving taxes besides offering unmatched protection. The premiums paid for life insurance plans are allowed as a deduction from your income under Section 80C up to ₹1.5 lakhs. The death benefit received is completely tax-free and even the maturity proceeds are exempted from tax under Section 10(10D) subject to certain terms and conditions.

 

The road ahead

Given the benefits of life insurance and the plan options to choose from, a life insurance policy should be a quintessential part of your financial planning. Insurance companies and the Life Insurance Council are doing their bit to motivate individuals to invest in suitable life insurance plans. It is time for you too to do your bit. You can invest in Tata AIA term insurance or other insurance policies depending on your financial needs and create a suitable life insurance portfolio that gives complete financial security.


L&C/Advt/2021/Aug/1343

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Disclaimer
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material

  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry

  • IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

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