What is Sabse Pehle Life Insurance? It is a public awareness campaign being introduced and marketed by IRDA and Life Insurance Council to make people aware about the need of life insurance and apprise them about their financial responsibilities towards their families.
But why sabse pehle. Why foremost?
As soon as a person starts a family he is expected to take care of his family members for all their love, affection, security, upbringing and financial needs. His wife too may be a earning partner and contributing towards the finances of the family. Life insurance is the first thing that a earning member of a family needs to take to ensure a misshaping won’t hinder the secure and stable upbringing of the dependent members of the family. Not just the male members but any and all earning member need to have life insurance as their first and foremost investment decision.
Is life insurance a good investment?
It is very sad that people specially in India consider life insurance a investment. Of souse since the are putting money into it they would expect returns. People need to understand that life insurance is not just a investment but it’s main purpose is security and assurance. The returns can be 10000 times the invested amount in some cases. But at the same time it is also the best investment decision one can take. There are 3 main reasons behind the argument that life insurance is a investment with the best returns possible.
- Only Long term investment option: the policies of life I stance are generally long term like 10 to 40 or even more. The assurance from the life insurer to give out a fixed return for such a long period is reason enough for any investor to consider life insurance as a investment.
- Security: Lic of India invests it’s money in coordination with government of India and also has a sovereign guarantee from govt of India so the investments are secured to the level no other investment can be.3. The main purpose of life insurance is death claim. So god forbid if anything happens to a person while the insurance is in place the family would be getting returns which cannot be calculated in figures. There have been cases where the person has just started and paid just first installment and got huge sum assured.
- Assurance: LIC of India is a cash rich company and has been funding Indian government projects. The most important reason why more than 40 crore people trust LIC is that it has go the sovereign guarantee from Indian Government.