TITLE:
Factors Influencing the Choice of Investment in Life Insurance Policy
AUTHORS:
Ravi Kumar Tati, Ernest Beryl B. Baltazar
KEYWORDS:
Insurance, Investor, Tax Benefits, Risk Protection, Multi-Faceted Investment Option
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.15,
December
27,
2018
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.