The unsung HERO of Financial Planning


 Why Term Plans Should Be Your First Life Insurance Policy:

In a world of growing financial aspirations and increasing life uncertainties, life insurance often remains one of the most misunderstood financial tools. In a recent interview, Amit Jhingran, MD & CEO of SBI Life Insurance, brought refreshing clarity to the role term insurance should play in our lives.

Breaking the Myth: Insurance Is Not Just About Returns

Many individuals view life insurance merely as a return-generating instrument, often overlooking its primary purpose—financial protection. Jhingran emphasized that insurance should not be seen as an unnecessary cost, but as a foundational safety net for achieving all other financial goals. Term insurance, in particular, stands out as the most affordable and effective way to ensure this protection.

Term Plans: The Unsung Hero of Financial Planning

Unlike traditional or investment-linked policies, term plans are designed with one goal: to provide high coverage at low cost. Jhingran advocates for making a term plan the first insurance policy one buys. Its simplicity and clarity of purpose—offering a financial shield to one’s family in case of untimely demise—make it a cornerstone for any robust financial plan.

He also shared that term insurance saw a significant boost during and after the COVID-19 pandemic, as awareness around life protection grew. Interestingly, most customers now prefer policies that provide cover till the age of 65–70, showing a shift toward more practical and time-bound protection.

Adapting to Changing Customer Needs

Jhingran pointed out how insurers like SBI Life are constantly evolving to meet changing customer demands—offering more customized products, digital onboarding, and transparency in policy features and benefits. The aim is to remove complexity and build trust in a product that, for many, remains essential but underutilized.

Final Word: Protection First, Then Investment

The article leaves us with a strong message—before chasing investment-linked returns, ensure you’ve secured your family’s financial future. As Jhingran puts it, “Term plans should be your first life insurance policy.”

This isn’t just financial advice; it is peace of mind for you and your loved ones.

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