Life Insurance of SBI Life Insurance plans were launched in 2001 this business as a joint venture between SBI as 74% and BNP Paribas Assurance with 26%. SBI is the most trusted and largest bank in India. With its associate branches it is growing larger every day. The leading bank of Euro Zone, BNP Paribas is one of the foreign banks that is the oldest having its presence and has its presence in Latin America, Asia and Europe. There are other partnerships with Vietnam, Taiwan, Thailand and South Korea, Asian countries.
SBI Life Insurance plans are the top life insurance providers. It is the biggest private life insurer and is also the well known 1st private company dealing with life insurance and is highly profitable. It has a huge customer base and the banking channel has a wide reach. The advantages that an SBI enjoys over other insurance companies include an array of life insurance products catering to the Indian consumers.
Need for Insurance
- For Family: The need for insurance is because you have a family that is dependent on you. So, insuring yourself is more the priority. Life insurance is bought to offer protection to your family in unforeseen events. The proceeds of the life insurance help in supporting your family members to meet their regular expenses.
Check this out now–Know the Intricacies of Family Insurance
- Compulsory saving-cum-investment: The insurance policy could is a compulsory saving-cum-investment plan. The insurance policy proceeds may be used to fund future expenses and this includes your child’s higher education, a well deserved holiday or retirement funds.
- Loans or liabilities: It is crucial to insure yourself In case there is a mortgage or a loan on your assets. This provides peace of mind and ensures a source of income for your family.
- Self employed or partner of a firm: It is a must to have life insurance for people self employed or are partners in a firm. The critical components such as a buy-sell agreement funding may also need life insurance. The proceeds of life insurance may be useful to provide cash for the deceased owner’s interest in the business so that the business liabilities are paid off.
Apart from the RBI Bonds, the only investment products are the insurance products that assure yields over 5 to 25 years, a specific period of time. The insurance companies provide products for single premium investment and also as regular investment cum insurance so that it guarantees over a period of time high yields.
Whom to insure
- Breadwinner – Insuring you first is very important as you are the breadwinner of the family.
- Working spouse-You can have a joint-life policy and this well be helpful as a low cost policy covering either of you and is very much useful for tax saving.
- Children- Buying an insurance policy in your children’s name ensure your children receive a good sum to complete their higher education. The biggest advantage is that your family or child will receive money at a particular period when required in life.
You must read– Child insurance – SBI Life Smart Scholar Plan
- Partner/Key-person in the organization: Buy life insurance for the working partner or the key person in the organization. Such a policy will insure your firm against financial loss if it has to be incurred in case of your partner/key-person’s death.
When to insure?
As people dependent on your income are there, you should get yourself insured with SBI Life Insurance Plans. The younger the age, the premium is lower. At SBI-Life, it is recommended to get insured once you are married and have children.
Even if you are earning, single and intending to marry, you should think of getting a policy as it costs less now than the time you are getting married.
It is never late to get an insurance policy. At the age of 45, also you may choose insurance products providing benefits to your family and income in the retirement period.
How long to Insure
Ideally, insure yourself for the longest period as you are the breadwinning member of the family. The cost of buying a policy depends on:
- Policy term and type selected
- Your health, age and work nature
- Sum assured
- Premium payment
- Riders attached to the policy
The cost of a policy may be less on buying at an early age and a long period is the best for SBI Insurance Plans.
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