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IJRMEC

Volume2, Issue 5(May 2012)

ISSN: 2250-057X

A STUDY OF BUYING BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE POLICIES IN PERAMBALUR DISTRICT P. Sridevi Assistant Professor, Srinivasan college of Arts and Science, Perambalur.

ABSTRACT
The present paper is an endeavour to study the buyer behaviour regarding life insurance policies in the rural area of Perambalur district. Perambalur, being one of the agricultural districts in Tamil nadu was chosen for the study. The results of the study are based on a field survey of 150 respondents by using purposive sampling technidque. India is a country where the average selling of life insurance policies is still lower than many western and Asian countries; with the second largest population in world the Indian insurance market is looking very prospective to many multinational and Indian insurance companies for expanding their business and market share. Before the opening of Indian market for Multinational Insurance Companies, Life Insurance Corporation (LIC) was the only company which dealt in Life Insurance and after opening of this sector to other private companies, all the world leaders of life insurance has started their operation in India. With their world market experience and network, these companies have offered many good schemes to lure all type of Indian consumers but unfortunately failed to get the major share of market. Still the LIC is the biggest player in the life insurance market with approx 65% market share. The study focus on the factors which plays a major role in buying behavior of consumers towards life insurance policies in Perambalur area.

International Journal of Research in Management, Economics and Commerce www.indusedu.org    

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IJRMEC

Volume2, Issue 5(May 2012)

ISSN: 2250-057X

INTRODUCTION
Security has been a universal desire right from the earliest civilizations. This quest for security has led to the concept of insurance. Insurance is a contract between two parties whereby one party called insurer undertakes, in exchange for a fixed sum called premium to pay the other party an assured sum of money on the occurrence of a certain event. Life insurance protects against the economic loss in the event of death. A family is generally dependent for its food, clothing and shelter on the income brought by the bread earner of the family. So long as he lives, that family secure but the death of the person may put the family in a very difficult situation. Uncertainty of death is inherent in human life. It is this uncertainty that gives rise to the necessity for some form of protection against the financial loss arising from death. Life insurance

substitutes this uncertainty by certainty. Insurance sector plays a very important role in the development of any economy also, as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability

STATEMENT OF THE PROBLEM
Life is full of risk and uncertainties. Since we are the social human being we have certain responsibilities too. Indian consumers have big influence of emotions and rationality on their buying decisions. They believe in future rather than the present and desire to have a better and secured future, in this direction life insurance services have its own value in terms of minimizing risk and uncertainties. Indian economy is developing and having huge middle class societal status and salaried persons. Their money value for current needs and future desires here the pendulum moves to another side which generate the reasons behind holding a policy. Here the attempt has been made in this Research paper to study the buying behavior of consumers towards life insurance services in Perambalur district.

OBJECTIVES OF THE STUDY
   To develop and standardize a measure to evaluate investment pattern in life insurance services. To evaluate the factors underlying consumer perception towards investment in life insurance...
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