A study on the factors affecting the selection of life insurance products by customers – an Analytical study

Human life is a most important asset and life insurance is the most important type of insurance which provides financial protection to a person and his family at the time of uncertain risks or damage. Life insurance provides both safety and protection to individuals and also encourages savings among people. Lic of india plays a vital role in the welfare of human well-being by providing insurance to millions of people against life risks such as uncertain death or accident. The present exploratory and descriptive based study was selected with an objective to identify those factors which influence customers policy buying decision and also analyze the preferences of customers while life policy investment decision-making. Various insurance related factors have been discussed in the paper. The data for the study has been collected from both primary and secondary sources. The study area is limited to Gujarat State and sample size is 150 policyholders of lic and different private life insurers have been selected through a stratified and purposive sampling method. Researcher has taken few hypothesis based on demographic and insurance based preference factors and tested them with the help of various statistical tools like chi-square, correlation and weighted average method. The analyzed data has been presented in the form of table, bar graphs and pie-charts. Lic is the most accepted and popular brand in life insurance, the market share of private insurers are gradually increasing with people trust and better services offered by them are some of the main findings of the study. Insurance companies should spread more awareness about life insurance, reduction in premium amount and giving more attention on need based innovative products are some of the suggestions provided by the researcher. The paper concludes with that demographic factors of the people play a major and pivotal role in selecting the life insurance products.