Attribute Preferences of Term Insurance Plan among the Prospective Buyers: An Application of Conjoint Analysis
European Journal of Molecular & Clinical Medicine,
2021, Volume 8, Issue 2, Pages 2243-2251
Abstract: Term Insurance as the name suggests is a Life Insurance policy that is taken for a certain period or term in case of unfortunate death of the policyholder the sum assured is paid to the beneficiary nothing is paid out to the policyholder if he or she survives the policy term which makes term insurance a pure life insurance policy which can give you a very high cover for very low premium as compared to traditional life insurance policies . Due to dynamism and contingency in today’s world ,new products for Term insurance is in demand which have characteristics containing preferences of the customers in this segment. The purpose of this study is to explore the attributes that influence consumers on purchasing a term life insurance plan in India . The conjoint approach is used to analyse the new purchase decision of customer by taking into consideration of different attributes of the product or Plan. In the study sample is collected from the respondents who identified themselves as insurance decision-makers by taking term insurance . The customers are requested to rate the different profiles of the term life insurance policy included in the questionnaire. The consumer is selected using the Non-probability Judgmental sampling method. The Study concluded that the most important attributes of the Term insurance plan are Brand and payment options. However, the least important attributes of the term insurance plan are found to be sale channel, Term assured, and Rider benefits.
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