Customers’ Preference Parameters for Investing in Insurance: A Case on Indian Prospective

Abstract

Life Insurance is considered to be an important part of an individual’s investment portfolio, not necessarily to accumulate wealth, but to feel financially secure. There are individuals who don’t view Life insurance policy have other benefits also, like tax-deduction options, and in some cases long term capital gains. With this regards, researcher’s basic objectives are, examine the age wise difference in the perception of ideal risk cover, occupation wise difference in the sum assured and relation between annual income & total sum assured. The primary data was collected through structured questionnaire and personal interview by using snow ball sampling. The sample size covered for this research is 200 customers. For data analysis various statistical measures like Mean, Median, Mode and Standard Deviation were used. All the statistical analysis was done with the help of MS Excel. For hypothesis testing, various tests like one way Anova, Friedman, Kruskal Wallis test, Association of Attributes were conducted. Researcher mainly found that the age of an individual does not influence perception about the ideal risk cover, occupation wise there is a difference in the sum assured value of respondents and there are no differences in annual income with respect to total sum assured of insurance policies.
Keywords: Investment, Insurance, Customer preference parameter, Risk cover, Sum assured.