Shreeji Enterprise

In recent years the India has emerged as one of the fastest growing financial services market in the world. This has been largely due to rising incomes driven by economic growth and increasingly informed customers with differing needs for financial services.
The Life Insurance market in India has also grown very impressively over the past six years, with new business premiums growing at over 30-35%. Today, the $ 41-billion Indian life insurance industry is considered the fifth largest life insurance market. The total number of life insurers registered with the IRDA has gone up to 23 and since the opening up of the insurance sector in India, the industry has received FDI to the tune of $ 525.6 million.
The Indian Life Insurance industry though is still at a very nascent stage and there is a very long way to go. Currently, the ratio of life insurance premium to the GDP is around 4%. This is much lower than the market levels of 6% to 10% generally observed in developed markets. With only 30% of the Indian population exposed to some form of life insurance, there is also large disparity in the exposure of urban and rural markets. In urban markets, the life insurance penetration is about 65% and in rural markets, this is significantly lower.

Life insurance’ is a contract between the policy holder and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy holder agrees to pay a premium – stipulated amounts at regular intervals or in lump sum.
There are only two serious uncertainties of our lives.
➤ Dieing early without adequate wealth for others
➤ Living too long without adequate wealth for self
With many types of life insurance products available, one can easily cover both these risks comprehensively. Products can be chosen that would provide the necessary amount to your family in case of your uncertain death and also provide a secured source of income during the golden years of your life.

The following benefits explain why life insurance should be an integral part of your overall financial plan.
➤ Risk Cover and financial security in your absence – This is the most important advantage as one can ensure financial well-being for near & dear ones in your absence.
➤ Protection plus savings over a long term – Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.
➤Planning for life stage needs – Life Insurance policies can also help build long term investment and help you meet your life goals, like child education, their marriage or retirement.
➤ Protection against rising health expenses – Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses
➤ Tax Benefits – Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans
➤ Inculcate savings habit – Being a long-term contract, regular savings is promoted by way of premium payments
➤ Safe and regulated – Insurance is a highly regulated sector and IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder’s money is the primary responsibility of all stakeholders

Life Insurance / Term Planning