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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING

Peer Reviewed and Refereed Journal IMPACT FACTOR: 2.104 (INTERNATIONAL JOURNAL) UGC APPROVED NO. 48767

Vol.03, Issue 04, April 2018, Available Online: www.ajeee.co.in/index.php/AJEEE

Paper Id /Ajeee-1235

A STUDY ON BUYING BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE POLICY

ANITA DAS¹ ANJALI MAHESHWARI²

Scholar, Department of Management & Commerce Faculty of Law & Governance

Jayoti Vidyapeeth Women’s University, Jaipur

Abstract-India is a country with the second largest population in the world but still here the selling of the life insurance policies is lower than expectation. Indian insurance market is still very prospective to many Indian insurance companies and many multinational companies for expanding their business and share in the market. As the Government is infusing various rules and regulations, Insurance Industry is experiencing huge progress as the numbers of customers are increasing with considerable options of new entry of various companies into this sector. But still the question is that why do Indians do not trust on many companies and why most of the people in India do not have any insurance policy inspite of various benefits given by the different insurance companies and what are the main factors that are playing a great role in buying behavior of consumers towards the life insurance policies. Thus the present study helps in analyzing the factors that are influencing different consumers to choose particular insurance company when they need an insurance policy.

Keywords: Perception, Buying behavior, Consumer’s preferences, Life insurance, investment.

INTRODUCTION

Human life is unpredictable as it is full of risks and uncertainties. Indian consumers buying decisions mostly depend upon their emotions and rationality. Everyone wants to have a good and secure future rather than living in present. Life Insurance Services have their own values which help in minimizing those risks and uncertainties. Life insurance means different things to different people worldwide. Some may take it as an valuable addition to financial investment portfolio while some take it as just a way to cover the final expenses for the reason of someone dies. Life Insurance is an agreement/contract between two persons one is the policy

holder and one is the Insurer. In which Insurer promises to pay a sum of money or fixed amount of money to the insured person.With huge middle class societal status and salaried persons, Indian Economy is developing. The value of money for the increasing current needs and also increasing future desires moves like a pendulum from one side to another which plays a great role in holding a policy nowadays.

OBJECTIVES

1. To study about various Life Insurance Policies.

2. To analyse factors affecting consumers perception towards insurance policies.

TYPES OF LIFE INSURANCES

LIFE INSURANCE

TERM LIFE PERMANENT LIFE

LEVEL TERM DECREASING TERM

TRADITIONAL WHOLE LIFE

UNIVERSAL LIFE

VARIABLE UNIVERSAL LIFE

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 TERM POLICIES- They provide insurance coverage only for limited period of time and if the person or the policy holder dies between that time period then the nominee or the beneficiaries get that death benefits. The policy premium depends upon the age and health of person getting insured.

 Level term: In this the death benefits are the same all through the life of the policy.

 Decreasing term: In this the death benefits decline at a time over the life of policy.

 PERMANENT POLICIES- They provide life time death benefit coverage along with cash value component

 Traditional whole life insurance

 Universal life insurance

 Variable universal life insurance

DIFFERENT FACTORS AFFECTING CONSUMERS PERCEPTION TOWARDS INVESTMENT IN INSURANCE POLICIES 1. Company Loyalty-

We all know that customer is the most important visitor on our premises.

People belive only on those product who’s market value is more than other brand.

2. Services Quality-

Customers have different perception about the policies of particular company. Companyhave to encourage the customer about different policies and enables management to incorporate the voice of customer into decision making.

3. Ease of Procedures-

This factor includes that the company should provide all claims on time.

Settlement of claims should be co- operative, friendly and timely. Also agent should be well informed about the policies and its terms and conditions.

4. Satisfaction Level-

This factor include that the insurer should be satisfied with the policy which includes that the insurer should get all the suggested or mentioned benefits of insurance policy. The company should provide all the satisfactory services and

should fulfill all its promises about the insurance policy.

5. Company Image-

This factor includes that the insurance company and as well as the insurance provider should have a goodwill or a good image in the market and also should have a high repute means it should be well known in the insurance industry.

6. Company Client Relationship- This factor includes that the agent reminds the insurer about the premium installments. Agent pays personal attention on every consumer and also understands every consumer’s financial needs too.

CONCLUSION

Indian consumers are frequently changing their investment habits in present Indian Market. All individuals have set up their own perceptions towards the different investment plans introduced in the market. This research paper focused over consumer’s perception on investment towards Life Insurance Services. The main objective of this research was to evaluate all those factors that are underlying today’s consumer perception for investments in Life insurance Policies and also comparing their perceptions according to the sex of the consumer(Male or female).

The result that we obtained was amazing.

The perception of the consumer’s towards the Life Insurance Policy was highly positive. A positive mind is set according to the investment pattern in insurance policies. But still there is a need to improve or develop some actions in insurance market. The important factors that are contributing in the development of consumer’s perception towards Life Insurance policies are-

1. Loyalty of consumers 2. Quality of service 3. Ease of procedures 4. Level of Satisfaction 5. Image of the Company

6. Relationship of Client and Company

There are a lot opportunities that are waiting for the Insurance Industry to go ahead. Thus this research will help in the development of share market,loyalty and

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also further enhancement in insurance sector.

REFERENCES

1. Dr. Dipin Mathur Insurance companies - A Study of Ajmer City”, IOSR Journal of Business and Management.

2. Sandeep Chaudhary: A Factor analytical Approach.

3. Narendra S, Sampath L. consumer awareness towards life insurance sector in india, Abhinav’s

4. D Siddhartha, Consumer buying behavior towards life insurance: An analytical study.