Factors Influencing the Choice of Investment in Life Insurance Policy

Abstract

Insurance industry in India is flourishing with numbers of national and global players in the form of joint ventures and is excelling with the exponential growth in business. In spite of infusing several rules and regulations of the Government of India, insurance industry has been experiencing tremendous progress in terms of increasing number of investors with considerable number of new entry of insurance companies into the sector. At present there are 24 numbers of domestic and foreign players operating in the sector. In India insurance still has been considered as a tax saving tool rather than an investment option. The present study analyzes the Factors Influencing the Choice of Investors in Life Insurance Policy in Hyderabad city. The specific objective was to find out whether there is any association between annual income of investor and factors influencing consumer choice of investment in life insurance. A sample of 75 insurance investors’ data was statistically analyzed with the help of Chi-square test and the study was concluded that there is no association between annual income and factors influencing investor choice of investment in life insurance. It is suggested that the majority of the investors’ should treat insurance policy is not only a tax saving option but also the risk protection and a multi-faceted investment option. The author also acknowledges the limitation of the small sample which may not be exhaustive for any policy decision of the insurance companies. Hence, the findings of the study are to be correlated with the current trends in the industry with a comprehensive study.