V3I3P86

A Study on Factors Influencing Purchase of Life Insurance in Chennai

Nithesh R^1*, Dr. S. S. Onyx Nathanael Nirmal Raj²

Abstract

This study focuses on analyzing the factors influencing the purchase of life insurance policies in Chennai. Life insurance plays a vital role in providing financial security and risk coverage to individuals and their families. The main objective of this research is to identify the key determinants that affect consumers’ decisions to invest in life insurance. Factors such as income level, age, awareness, trust, premium amount, and policy benefits are considered in this study. The research is based on both primary and secondary data. Primary data is collected through questionnaires distributed among individuals in Chennai. Secondary data is gathered from journals, articles, and insurance reports. The study adopts a descriptive research design to understand customer behavior. It highlights the importance of financial literacy and awareness in influencing insurance decisions. The findings reveal that income level and awareness are major factors affecting purchase decisions. Trust in insurance companies and claim settlement ratio also play a significant role. The study also identifies that younger individuals are less inclined towards life insurance compared to middle-aged groups. It concludes that effective marketing strategies and awareness programs can improve insurance penetration. The research provides useful insights for insurance companies and policymakers. Overall, the study emphasizes the need to enhance customer understanding and confidence in life insurance products.

Keywords:

Life Insurance Purchase Behavior; Consumer Decision Factors; Financial Literacy and Awareness; Income and Trust Influence; Insurance Penetration Strategies