A Study of Importance of Life Insurance with Reference to IDBI Federal Life Insurance

Insurance is a cover used for protecting oneself from the risk of a financial loss. There are mainly two parties involved in this – the insurer and the insured. The insurer is the insurance company who will provide the cover to the insured against any financial losses. The policy is paid through which is called premium, which is a set amount that must be paid by the insured on a monthly, semi-annual or annual basis. On the happening of an event like death, disability, fire, etc, for which the insured is covered, the benefit amount stated in the policy contract can be claimed by the insured and successor of insured.

There are mainly two broad classes of Insurance – Life and Non Life. 1. Life insurance products include Term Life policies, which give pure risk coverage of only the death benefit, whereas endowment or money back policies have a risk as well as savings component i.e. death as well as maturity benefit. Also coming under the life insurance umbrella are the Unit – Linked Policies in which there is a risk component and a savings component, which is invested in equity, debt or gilt funds, depending on the insurance company. 2. Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. This insurance class deals with all the non-life aspects of an insured like his/her house, health, land, office, cargo, etc which might bring financial loss.

FACTORS OF LIFE INSURANCE RATES

As with any type of coverage, life insurance rates are a simple expression of the financial risk you pose to the insurer. Anything that increases your chance of death, (and the likelihood your insurer will have to pay out) means a cost increase to you. The factors are health, age, behavior etc. Age A term life insurance policy will always be slightly more expensive for a man then it would be for a woman of the same age.

One big factor will be your and your family's health histories. If you have a serious or chronic health condition, obtaining an affordable policy (or even any policy at all) may be tough. If you have a family history of such an ailment, your premiums will likely be higher as a result. Your health "profile" will also be of interest to the insurer.

Any high risk or dangerous activity participated in on a regular basis means higher premiums. Smoking is the big fish here. It is virtually impossible for a smoker to earn a preferential rate, even with an otherwise pristine bill of health. "Bad habits" aren't the only high-risk behaviors punished with higher rates. IDBI Federal Life Insurance Co Ltd. It is a three way joint-venture of IDBI Bank, an Indian development and commercial bank; Federal Bank is one of India‘s leading private sector banks.

insurance MoU to start a life insurance company in India. The company received its license from Insurance Regulatory and Development Authority of India (IRDAI) in December 2007. IDBI Fortis Life Insurance Co. Ltd. officially began its operations in March 2008. In August 2008, the company collected the premium of over Rs.100 crore within a record time of five months, thus becoming the fastest growing new life insurance company in the private sector.

• To know about various investment alternatives preferred by the customers. • To find out the criteria that people think about before investing in a life insurance policy. • To find out the level of awareness of IDBI federal life insurance

Research is an important pre-requisite for a dynamic organization to be précised. The present research is exploratory in nature. The main objective of the exploratory research design is to define the problem into researchable one and transformation of discovered problem into defined one.

It indicates the number of individuals who would be surveyed. Here the sample size is 50 respondents.

The main method of data collection adopted here is primary data. There are several methods of primary data collection like questionnaire, interview, observation etc. The method used by the researcher is Questionnaire.

The study suffers from some limitations; few of them are as follows: • Due to shortage of time the studies conducted on very small scale.

DATA ANALYSIS AND INTERPRETATION

INTERPRETATION:

Every respondent was aware about insurance. So it helps in the study a lot.

68% people wishes to invest in insurance in between 5000-10000, 18%people wishes to invest in between 10000-25000,10% people wishes to invest in between 25001-50000 and only 4% people wishes to invest more than 50000 in insurance.

Out of 50 people interviewed 49% are having LIC insurance, 14% are having ICICI Prudential insurance, 26% are having Bajaj Allianz,6% are having IDBI Federal Life Insurance and remaining 5% are having insurance of other companies. So, on the base of this survey we can say that the company needs to do a lot for capturing the market.

By the study we come to know that 58% people give high preference to to protection, 24% people give average and rest 18% gives no preference to protection.

By the study we come to know that around 40% people give high preference to risk cover and investment. Then 40 % people give preference the insurance policy in regard of tax benefits.

Our study gives us the information that 38% people have information about child gain, 26% knows about endowment plan, 20% know about money back and 16% people have information about pension plan.

they wish to know the fund value of their plan but still 30% faced problems when they want to know about their fund value rest 70% people are happy.

From the study we can say that mostly people are highly satisfy from various parameters such as saving, security of money, risk cover and easy mode of claim. And people are satisfied from the behaviour of their agents and risk cover.

• On the basis of previous study we find that many of the people have knowledge about the insurance sector. • The study shows that people know about IDBI FENERAL LIFE INSUARNACE through various sources like friends, agents, advertisements and others.

The entry of more Pvt. Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

• Awareness of customer is very low in India, even educated person are ignorant about various products of insurance. • Company should have make endeavour in this context like advertisements. • Give assurance to people that they will not go anywhere taking their money, because this is regulated by IRDA and backup by RBI. • Company should provide more benefits with their products like major surgical benefits and income benefits. • Companies should open customer services points in rural areas also.

Kumar, Arun (2011). ―Marketing Management‖, 2nd edition, Vikas Publishing House, 2011. Chawla, Deepak (2011). ―Research Methodology-Concepts and Cases‖, 1st edition, Vikas Publishing House, 2011. ―Kotler Philip (2010). ―Marketing Management.‖, 12th Edition, Pearson Education, New Delhi, 2010.

www.idbifederal lic.com www.hdfcslic.com www.insuranceindustry.com www.irdaindia.com www.lic.com www.money control.com www.bajajallianz.com www.icici.prulife.com Principles and Practices of Insurance - M.N.Mishra Life insurance (IC-33) IRDA journals The Insurance Chronicles.

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