Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during The date of maturity, Specified dates at periodic intervals, or Unfortunate death if it occurs earlier. Among other things, the contract also provides for the payment of premiums periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution which eliminates ‘risk’, substituting certainty for uncertainty, and comes to the timely aid of the family in the unfortunate event of the death of the breadwinner.
When it comes to life insurance providers in India, SBI Life Insurance Company and Life Insurance Corporation (LIC) are worth mentioning because both companies have been in existence for decades and have gained popularity among customers because of their different life insurance products that are made to cater to the varied needs of the different customers. Both the insurers encourage ‘thrift’. It allows long-term savings since payments can be made effortlessly because of the ‘easy installment’ facility built into the scheme. Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. To know more about these companies, have a look at the following mentions.
About Life Insurance Corporation of India
Since the beginning, Life Insurance Corporation has crossed many milestones and has set unprecedented performance records in various aspects of the life insurance business. The Corporation is inspired by the message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. The company tries to meet the various life insurance needs of the community that would arise in the changing social and economic environment. To facilitate a greater spread of insurance and to avoid inconvenience, LIC has been extending insurance coverage without any medical examination, subject to certain conditions. A policy of LIC that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time to time. Also, LIC grants loans to policyholders for house building or for the purchase of flats (subject to certain conditions).
Major Benefits of LIC
A few important mentions are as follows.
Liquidity:
In the case of insurance from the LIC, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.
Tax Relief:
Life Insurance from LIC is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also avail of provisions in the law for tax relief. In such cases, the assured pays a lower premium for insurance than otherwise.
Money When You Need It:
Children’s education, start-in-life or marriage provision, or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one’s retirement from service and used for any specific purpose, such as the purchase of a house or for other investments.
Keyman Insurance:
It is a special benefit of Life Insurance Corporation, which is taken by a business firm on the life of key employee(s) to protect the firm against financial losses which may occur due to the premature demise of the Keyman.
Protection:
Savings through life insurance guarantee full protection against the risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable), whereas in other savings schemes, only the amount saved (with interest) is payable.
Premium Payment:
LIC has provided its policyholders with a unique facility to pay premiums online absolutely free of charge and also view their policy details.
Online facilities – LIC has come up with a bunch of online facilities such as claim registration, checking the policy status, buying the policy, etc., to make things easier for the policyholders.
Understand SBI Life Insurance
SBI Life Insurance, one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered. Serving millions of families across India, SBI Life’s diverse range of products caters to individuals as well as group customers through Protection, Pension, Savings, and Health solutions. Driven by the ‘Customer-First’ approach, SBI Life places great emphasis on maintaining world-class operating efficiency and providing hassle-free claim settlement experience to its customers by following high ethical standards of service.
Additionally, SBI Life is committed to enhancing digital experiences for its customers, distributors, and employees alike. SBI Life strongly encourages a culture of giving back to society and has made substantial contributions in the areas of child education, healthcare, disaster relief, and environmental upgrades. In 2022-23, the Company touched over 1.1 lakh direct beneficiaries through various CSR interventions. The company has made its presence strong among the customers by its customer-centric approach and diversified life insurance products.
Key Highlights of SBI Life Insurance
SBI Life Insurance Company has come up with a sack full of different products to address the needs of the policy-seekers. Some of the important mentions are as follows.
NRI Corner:
For the NRIs, the company has come up with different Child Plans, Protection Plans, Savings Plans, and Retirement Plans. The NRIs can also handle their policy online.
NAV and Fund Performance:
To keep everything transparent, SBI Life has presented the NAV and Fund performance facility where one can check the unit price for selected funds on a daily basis, check portfolio details, can view the performance of funds in comparison with Industry Benchmarks, and many more.
Customer Service:
Their customer executives are there 24×7, always to help you out with any of the problems faced by the insured person.
LifeVerse:
One can explore LifeVerse and can interact with their favorite digital influencers like never before. This would help them to build their future in a more planned way.
Affordable Plans:
An insurance buyer will always want a good insurance plan that fits their necessary requirements and, most importantly, that fits in their budget. SBI Life Insurance provides comprehensive life cover on the payment of an affordable premium rate. Some SBI Life Insurance plans provide many options at a very affordable premium rate.
Wide Range of Products:
SBI provides a comprehensive range of Term, Unit-Linked, Savings, Investment, Retirement, Moneyback, and Child plans. You can choose the plan that fits your needs and budget. They offer online plans that cater to hassle-free and quick registrations. Every plan differs from each other and comes with many options that can fit your requirements and budget as well.
Flexibility:
One can pay the premium amount for the policy either monthly, quarterly, half-yearly, or yearly. One can also add riders as per their needs to strengthen their life insurance plan.
Comparison table of SBI Life Insurance and LIC
The following table will provide an idea about these two companies and their differences. Have a look.
| Parameters | SBI Life Insurance | Life Insurance Corporation of India |
| Number of plans | 34 | 38 |
| Types of available plans | Saving Plans Protection plans Wealth Creation with Insurance Retirement Plans Child Plans Money Back/Income Plans Combo Plans | Endowment Plans Money Back Plans Whole Life Plans Term Insurance Plans Pension Plans Unit Linked Plans Micro Insurance Plans Health Plans |
| Claim settlement ratio as per IRDAI Annual Report of the financial year 2021-2022 | 96.02% | 94.55% |
| Solvency Ratio as on March 2022 | 2.05 | 1.85 |
| Premium underwritten (2021-2022) | Rs. 58,759.64 crores | Rs. 428,024.97 crores |
| Equity share capital as of March 31, 2022 | Rs. 1000.04 crores | Rs. 6325.00 crores |
| Online policy | Available, but not for all | Available |
| Network connection | SBI Life strives to make insurance accessible to all, with its extensive presence across the country through its 996 offices, 22,015 employees, a large and productive individual agent network of about 222,822 agents, 68 corporate agents, and 14 bancassurance partners with more than 39,000 partner branches, 133 brokers and other insurance marketing firms. | Today Life Insurance Corporation functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate Office. Life Insurance Corporation’s Wide Area Network covers 113 divisional offices and connects all the branches through a Metro Area Network. |
| Digital platform | ILA | SATELLITE SAMPARK |
| Type of company | Private Sector Insurer | Public Sector Insurer |
| NRI service | Available | Available |
| Awards and recognitions |
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Which one Is The Best - SBI Life Insurance or LIC?
Both companies have designed their life insurance plans to cater to the needs of individuals so that the customers can keep their families financially protected. Additionally, the rider options have made the plans stronger. Though all the plans are life insurance products and have been crafted keeping in mind the same purpose, they are different from each other. While SBI Life Insurance offers Combo Plans, Life Insurance Corporation provides Health Plans and many riders. All the plans are potent and strong enough to serve the needs of the individuals on the basis of their requirements. One needs to choose any of these plans, only keeping in kind the necessities of him/her. Therefore, it would be an injustice to identify one insurer as the best because it would be decided by the customer which one will satisfy his/her needs.
