Abstract
With privatization of insurance in India in 2000, the industry is witnessing the birth of numerous private players, mostly joint ventures between foreign insurance giants and Indian diversified conglomerates. There is an immense growth potential of Indian Insurance Industry when it is seen that only 35% of the insurable population is insured. However, this percentage is not going to go up unless people understand the necessity of life insurance and how much should they insure. The first part of this work deals with segmentation on investment by studying Personal Financial Profile (PFP) on the basis of age, income and profession. This reveals the current investment pattern practiced by people of different demographics and where insurance stands in the overall ‘savings’ perspective. The last part deals with finding out one's insurance need, as current proposals from various insurance companies based on Human Life Value (HLV) calculation are too high to be believed. This paper suggests an alternative definition to HLV and means to find it. Its performance is compared with the present' model and a thumb rule for determining the insurance need is provided.
Get full access to this article
View all access options for this article.