Published Paper Details:

Abstract Life insurance plays a very significant role in the development of the economy. There are many factors, which are affecting while selecting the life insurance company as well as life insurance policies. The present study determines the selection of public or private life insurance companies and its products by the policyholders. The study aims to identify the most influencing factor/person on policyholders to purchase the policies of public or private life insurance companies. An attempt is also made to identify the major motivational factor for investment in Life Insurance Company, for selection of Life Insurance Company and life insurance products. The study is done based on a questionnaire with a sample of 600 policyholders. The collected data are analyzed by using Simple Percentage Analysis, Frequency Table, Chi-Square Test, ANOVA Test and Independent Sample T-Test. In this study, an attempt is made to study the factors like motivating person, motivational situation, type of company, procedural simplicity, service quality, claims and their settlement, premium amount, the term of the insurance, coverage etc. and their influence on buying behaviour of investors. The major findings of the study are agent is the major motivation person for purchasing the life insurance policy, the future decisions of the policyholders are dependence on the education level, occupation, annual income and monthly savings of policyholders. It reveals that, the life insurance agent is the major motivating person for buying a life insurance policy in public and private life insurance companies and risk coverage and safety and security are the major motivational factor (46.0 per cent) for buying a life insurance policy in public and private life insurance companies. The study also found that, maturity benefits and service quality are the major motivational factor for selecting the life insurance company. The study has also found that the respondents buying insurance policies for age and their financial necessity. The study suggests that, the public life insurance company should improve its service quality and the public life insurance company should keep the policyholders as updated with new policies and services. For this, the information service of the company should be improved. At the same time, the public life insurance company agents have been well trained for providing better services to the policyholders. The paper concludes with that demographic factors of the people play a major and pivotal role in deciding the purchase of life insurance policies.