Effectiveness of Life Insurance Product Comparison towards Purchase Decision
Resulting to the changes started in the Indian budgetary segment and the progression of Indian life insurance industry, various new life insurance organizations have initiated tasks in India finishing the 45 years of syndication by the open area organization, Life Insurance Corporation of India. The gross underinsurance winning among the clients has kept on giving a gigantic market chance to the life insurance organizations, who are embracing various channels like tied operators, banks and corporate specialists for dispersing the products. For the year 2005-06, the business gained by a tied organization comprised about 98% for LIC of India and about 60% for private life insurance organizations. This booming industry is introducing variety of products according to the market trends, competitive strategies, product innovations, government regulations etc. But the reality is, most of the customers are availing the insurance product without knowing the features and suitability of that particular product. So the customer who wants child plan will get annuity and vice versa. This wrong selling inversely affects the customer satisfaction, which needs to satisfy his wants. So making a thorough knowledge about the products and their features are essential to purchase the right product at the right time.
Deals apparatuses like Pension estimations and Future expenses of education/marriage are seen as powerful while selling life insurance products. The preparation along these lines bestowed to specialists will improve their profitability, decrease their mortality and help to build up a quality dispersion channel for life insurance products. So prior to a detailed empirical study about this topic the researcher would like to present a theoretical framework about the importance of product knowledge of insurance policies.
Keyword:. life insurance products, Indian life insurance industry, child, customer perception, buying decision, business management.