Consumer s Buying Pattern of Life Insurance Policies in Haryana Mohinder Partap Assistant Prof. & HOD, M.Com. Courses Vaish College, Rohtak Abstract This paper examines the consumer s buying pattern of life insurance policies in Haryana. To achieve the objective of the study 350 life insurance consumers respondent have been selected from four districts (Rohtak, Sonepat, Hissar and Bhiwani). Selection of the consumers has been done through disproportionate stratified random sampling. Primary data of individual respondents have been collected, who have purchased life insurance policy from Life Insurance Corporation of India and get information regarding buying pattern of life insurance policies. As we know Insurance Companies play a vital role in development of economy of a country, so it is very important to know the buying pattern of various types of life policies. Now-a day s consumers are very interested to know and understand about various types of life insurance policies. So it is required to know about their thinking and decisions for the buying the different types of policies. An effort has been made to judge the consumer s buying pattern of life insurance policies in Haryana. Analysis of the study found that major investors in the life polices products are the people falling in age group 30 40 years, who are employed, graduate, earning income between of the assets of 80,000 2,00,000 and owner 2,00,000 5,00,000. After taking buying decision of any type of life insurance policy, consumer feels satisfaction towards their family responsibility. Keywords: Consumer s Buying Pattern, Life Policies, Decision, Satisfaction etc. Introduction Satisfaction of the consumer is the individual perception of the performance of the product or service in relation to his/her expectation. The expectation is compared with perceived delivery or benefits (economic, psychological and functional) and the perceived delivery is compared with resources (efforts, time, monetary and psychological). A consumer may have different opinions about their satisfaction. A consumer, who believe in future rather than present and desire to have a secured and better future, want to invest their money in any type of insurance policy. Life insurance services play an important role in minimising risk and uncertainties of future. Usually a consumer swing between the options of current needs and secured future through the purchase of life insurance policies resulting in a particular 1 IJTMR
structural pattern of investment in insurance. Some economists have taken up these issues in their analysis. In year 1920 Pegler said that the offices should invest their fund in such a way that the society is benefited at large, as a result of which the economic and educational status will go up and ultimately the business of insurance companies will increase. In year 1990 Truett and Truett discussed the growth pattern of life insurance consumption in Mexico and United State in a comparative form during the year 1964 to 1984. They assumed that at an abstract level, demand depends upon the price of insurance premium and policy, income level of individual, availability of alternates and other specific characteristics. Further, they experimented with demographic variables like age and standard of education. The results showed that the existence of high income inelasticity of demand for life insurance in Mexico at low income levels. Age and standard of education were also found to be significant factors affecting the demand for life insurance policies in both the countries. Browne and Kim (1993), Outreville (1996) and Beck and Webb (2003) concluded that the other factor affecting the demand for life insurance are enrolment ratio at third level of education and percentage of labour with higher education. Present study is an attempt to study the buying pattern of consumers towards life insurance policies with the objective to find out investment pattern of life insurance corporations customers in different life insurance alternates and to suggest appropriate target market for selling the life policies. Methodology The study is based on primary data of individual respondent, who have purchased life insurance policy from Life Insurance Corporation of India, formed the sampling elements. Selection of the consumers has been done through disproportionate stratified random sampling. In case, a consumer has bought more than one life policy, only the policy with maximum amount has been taken up in the study. Four districts (Rohtak, Sonepat, Hissar and Bhiwani) have been selected from Haryana. Sample size was of 350 respondents. This study has used to analysis the investment pattern in different life policies vis-s-vis different variables such as age, occupation standard of education, income, assets and the amount insured. The survey was conducted in the year 2010. Analysis of Investment on the Basis of Age The age influence the perception, orientation and behaviour pattern as it has a strong bearing on economical, social, cultural and buying behaviour of consumers. On the basis of age 2 IJTMR
investment pattern of insurance policies are framed out of different Life Policies (Term life, Endowment Life, Annuities and ULIP) in all four districts and by different age groups consumers below 20 years, 20-30, 30-40, 40-50, 50-60 and above 60 different policies have been taken. The impact of age on investment pattern on insurance policies revels that the percentage of consumers has been found to be maximum in the age group of 30-40 years. Further, the study reveals that the consumers of all four districts have similar investment pattern except endowment life policies and annuities. Analysis of Investment on the Basis of Occupation The occupation plays a decisive role in making decision for investment. The study shows that the salaried persons have been found to be the largest investors among all the occupations in the all four district. The impact of the occupation on investment pattern of consumers of all four districts has been found to be similar to the impact of age as discussed above. Analysis of Investment on the Basis of Standard of Education Educational facilitate progress in an individual. It spawns a progressive view in an individual towards economic problems. The findings related to analysis of standard of education on investment pattern in different life policies shows that graduate consumers were the largest investors accounting for 45.00, 48.50, 45.60 and 41.55 per cent share in Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state respectively. The study reveals that the standard of education does not influence the buying pattern of the insurance policies. Analysis of Investment on the Basis of Income Income has a strong influence on the purchase of products or services, mat it be an insurance plan. Income is deciding factor in the type of benefits a consumer wants amongst life security, liquidity, profitability or market linked profit. In life insurance policies, premium varies according to nature of benefits consumers want to avail. The findings of the study reveals that the income group of 1,00,000 to 10,00,00 has been found to be the largest investors in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state with 45.00, 47.55, 45.46 and 41.89 per cent respectively. Further, the findings reveal the investment pattern in all the policies for all four districts has been same except annuities. 3 IJTMR
Analysis of Investment on the Basis of Assets Assets also have a strong influence on the purchase of any insurance plan. The findings of the study reveals that the insures coming under the category of assets 2,00,000 to 5,00,000 in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state purchases more policies that other categories of asset holders with 47.80, 49.59, 48.64 and 43.29 per cent respectively. The analysis further shows that investment pattern of groups (with different asset holdings) in different life policies has been found same in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana except annuities. Analysis of Investment on the Basis of Amount Insured Insured amount is another factor exerting a strong influence on the purchase of any insurance plan. The premium amount and insured amount vary in the same direction for all types of policies. The study shows that the policy with insured amount of 50,000 to 100,000 policies has been bought by largest number of consumers in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state. The study also shows that the investment pattern of the customers in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state in all policies is same with respect to the insured amount of policy. Overall Analysis The study reveals that the investment pattern of the consumers in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state in different life insurance policies with respect to the variable like age, occupation, income, assets and assured amount is same except education. Therefore, it is concluded that the investment pattern of policies purchased by the consumers in all four districts Rohtak, Sonepat, Hissar and Bhiwani districts of Haryana state on the basis of variables discussed above has been found to be same except education. Conclusion and Suggestions The study has revealed that the consumers of all four districts have similar investment pattern except Endowment fund life policies and Annuities with respect to the variables age and occupation, while, the investment pattern of the consumers of all four districts is same in all 4 IJTMR
life policies with respect to the variables such as standard of education and insured amount of policy. Further, the analysis reveals that investment pattern of groups (with different asset holdings and income) in different life policies have been found to be same in all four districts except annuities. As the study reveals that major investors in the life insurance policies products are the people falling in the age group of 30 40 years, who are employed, graduate, earning income between 80,000 2,00,000 and owner of the assets of 2,00,000 5,00,000. After taking buying decision of any type of life insurance policy, consumer feels satisfaction towards their family responsibility. It is suggested that LIC should make these groups as target groups selling their policies or marketing its products. This will reduce the cost of selling. It increase the profitability on one hand and secure more life consumes on the other. References 1. Truett, D.B. and Truett, L.J. (1990), The Demand for Life Insurance in Mexico and the United States: A Comparative Study, Journal of Risk and Insurance, 57, pp 321 328. 2. Browne, M.J. and Kim, K (1993), An International Analysis of Life Insurance Demand, Journal of Risk and Insurance, 60, pp 616 634. 5 IJTMR