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Consumer Behaviuor Towards Life Insurance

In: Business and Management

Submitted By Anuraz
Words 1831
Pages 8



M.F.M. - II


Life Insurance is the key to good financial future planning. On one hand, it safeguards our money and on the other, ensures its growth, thus providing us with complete financial well being. Life Insurance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness, critical illness or maturity of the policy.
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company, selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.
Till date, only 20% of the total insurable population of India is covered under various life insurance scheme (*Source: Center for Insurance Training, Research and Development), the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the scope of immense growth potential of the insurance sector in India. At present there are 24 life insurance companies offering different products to suit the different needs of the customers. In India, Insurance Regulatory and Development Authority is the regulator for insurance industry, which is responsible to provide guidelines for the protection of the interest of the policy holders.
The investment...

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