Reportedly, SBI Life Insurance Company’s net profit rose by 21 percent to Rs 230.28 crore for the third quarter ended December 2017 due to strong premium income. This is a rise of 39.85 crores from the corresponding quarter of previous fiscal 2016-17 when it stood at Rs 190.43 crore.
SBI Life said in a regulatory filing that their total income increased to Rs 9,720 crore from Rs 6,060 crore during the quarter against in the same period of the previous fiscal year. The net premium income also saw an increase of nearly 30 percent to Rs 6,780 crore from Rs 5,240 crore earned during the same Q3 quarter.
SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif SA, which has a widespread network of 814 branches across the country. "For the third quarter of 2017-18, private market share and total market share in terms of individual rated premium was 24.8 percent and 14.3 percent, respectively," SBI Life said. Solvency ratio, which is the ratio of available solvency margin to the required solvency margin, stood at 2.06 percent at the end of third quarter of the fiscal, against 2.09 percent a year ago during the same period.
The assets under management (AUM) increased by 23 percent to Rs 1,11,630 crore as on December 31, 2017, from Rs 90,720 crore on December 31, 2016. Among other factors, total premium increased by 29.5 percent, individual rated premium rose 38.2 percent, renewal premium rose 31.6 percent and the new business APE (annual premium equivalent) grew 41.9 percent in the third quarter of this fiscal.
SBI Life said the increase in net premium income was primarily due to increase in retail new business premium and also due to increase in renewal premium from the retail business. This increase leads to only one logical conclusion, people are becoming more and more aware of life insurance benefits. Let us put light on a few benefits of having a Life Insurance.
Benefits of buying a Life Insurance
Financial protection for your loved ones even in your absence: The most important feature of life insurance is that it replaces lost income, pays for your child's education or helps your spouse get the much-needed financial security in your absence. Life insurance is the only thing your family members can depend on in case of your unfortunate death.
Pays Off your Outstanding Debts: Like supporting your family in your absence, life insurance also helps in paying off your debts. Any outstanding loans or debts in the form of a home loan, business loan, auto loan, personal loan, or a loan on credit cards will be taken care of if you happen to buy the right life insurance policy.
Helps to Achieve Long-Term Goals: It is not that life insurance is only beneficial when you are dead. The maturity benefits received from life insurance plans can help in fulfilling your long-term goals like a second home or a happy retirement or destination wedding of your children and so on. It inculcates the habit of forced savings in you. The bonuses declared under traditional participating plans can also boost your wealth considerably.
Tax Savings: Investment in life insurance also helps in getting tax exemptions under Section 80C of the Income Tax Act, 1961. The maturity and death benefits paid are also tax-free under Section 10(10 D).
Recommended Read: How to Choose & Buy the Best Life Insurance Policy In India?