Importance of Life Insurance:The election atmosphere is in full swing in the country right now. Voting is to be held in a total of 7 phases in the General Election 2024, after which the government elected by the people will be decided. People vote with the assumption that they want to elect a government of their choice so that the future of them and their country remains safe. But many people still remain indifferent towards voting, because they believe that they have nothing to contribute in this big event. A similar thing is seen with life insurance also. Life insurance is also very important for your secure future, but the number of people buying it is still very less in the country.
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where does the problem arise
Talking about the general elections of 2024, before the start of the elections, a total of 97 crore people had registered to vote at more than 10 lakh polling stations across the country. But still the voter turnout is very low. This means that even though many people want a government of their choice to be formed, they are still not voting. This may be a fatalistic attitude.
Similarly, when it comes to life insurance, many people do not buy it even after understanding its importance and many people do not even know its importance. People feel that the process of life insurance is long and difficult, so they avoid buying it. Whenever it comes to buying life insurance in front of such people, many people show a feeling of reluctance regarding it.
Fixed Income Fund: Is the income, profit and risk fixed in these schemes? Invest money after checking them.
What is life insurance?
Life insurance is an important financial instrument, which provides financial security to an individual or his family when they need it most. These provide payment in case any incident happens to the policyholder during the policy period (insurance cover period). It can be said that life insurance cover helps your loved ones to compensate for any lost income or maintain their standard of living.
always worry about tomorrow
If today’s times are going well for you and are safe, then you should not assume that everything will continue like this in the future. Many people fail to understand the truth that tomorrow may come with some risk or many risks. People at large do not envision the bigger picture, where life insurance along with voting can help them become agents of change towards securing the future of the country and themselves and their families.
Retirement: Rs 1 crore will be in your pocket along with provision of pension of Rs 1.25 lakh, saving Rs 250 per day in NPS will help.
Awareness about insurance is increasing
However, as compared to earlier times, voter participation in elections has definitely increased and awareness about the importance of life insurance is also increasing. As Indians have broadened their horizons, life insurance is no longer just about protection. Rather, it is a better option to achieve your financial goals. Today’s customers are looking for new-age products and services with greater transparency that match their lifestyle and needs.
Insurance reached every village
Insurance is no longer just about the educated class living in the city. Now even people living in villages or towns are understanding the importance of insurance. Due to this, financial inclusion schemes like Atal Pension Yojana and Jan Dhan Yojana are becoming a safety net for the deprived or backward sections of the society.
Power of Compounding: Every year’s delay in investment reduces the power of compounding, there will be a difference of lakhs in returns.
Insurance regulator is also taking steps
To realize the vision of ‘Insurance for All’ by 2047, the Insurance Regulator, Bima Sugam (an online marketplace for insurance products and services), Insurance Carriers (Components to improve the accessibility and availability of insurance products across India ) and Bima Vistra (an all-in-one affordable insurance product offering life, health and property cover) are in the process of taking necessary steps. Together they form the Insurance Trinity of IRDAI, a committee that can help coordinate the operations of insurance companies. These are decisive steps to bring revolution in the insurance sector in the coming days.
These efforts of the insurance regulator are bearing fruit. India’s insurance sector is expected to register the fastest growth among G20 countries. Total premiums are expected to grow at an average rate of 7.1 percent in real terms during 2024-28. In comparison, according to the report of the Swiss Re Institute, the growth rate of the global insurance market will be around 2.4 percent.
How to choose life insurance
First decide your life insurance goal
Then analyze the optimal insurance cover for yourself
Choose the tenure that suits you
increase your coverage
Choose a plan from the beginning
Choose the plan as per your need
Regularly assess your insurance needs
(Author: Subhasis Ghosh, Head – Financial Institutions, Employee Benefits, Marketing & Alliances, Kotak Mahindra Life Insurance Company Limited)
