A Study on Customer Purchase Decision of Life Insurance Products

A Study on PurchASe deciSion-MAking towArdS Life inSurAnce ProductS

A. Lenin Jothi Associate Professor, Rukmini Devi Institute of Advanced Studies, Delhi, India

Abstract In this competitive market environment, there has been growing awareness about life insurance products and demand for the same is considerably increased. This research aims at determining consumers’ attitudes towards buying life insurance products and to understand their purchase and repurchase intention. Since knowledge and information about life insurance plays a major role in deciding on the purchase of a life insurance product, a brief discussion on the impact of various sources of information has been laid down. This research was conducted in the Delhi and NCR region of India taking a sample of 500 LIC customers and 500 private sector customers using quota sampling. The research shows significant difference in repurchase intention between public (LIC) and private sector customers and LIC customers have shown more positive repurchase intention than the private sector customers. The results show that the purchase decision–making is heavily dependent upon the gender of the married customers. This research further concludes that the agency system is still the major contributor to the growth of life insurance business in India. Key Words

Life Insurance, Product Information, Purchase Decision–making, Repurchase Intention

INTRODUCTION

Insurance and economic development of our country moves together towards the direction of growth. Insurance companies, both life and non–life, have been playing the role of financial intermediaries and performing extremely useful functions in our economy. For most people, insurance is the most important technique for handling risk (Rejda, 2004). The life insurance perception has significantly changed to a risk management device rather than simply a tax saving tool. The growing importance and diversified product categories have changed the buying behaviour of...