ULIP-A Policy for Balanced and Sustainable Development: A Preference Study in Rural Market

Vol. 7 No. 2

Year : 2012

Issue : Sep-Nov

Title  : ULIP-A Policy for Balanced and Sustainable Development: A Preference Study in Rural Market 

Author Name  : A. Jafar Sathic, N. Rajalingam 

Synopsis  : 

Urbanization in India happens in a faster pace in the last decade comparing with previous periods. However rural India still lacks in terms of accessibility to various goods and services. Life insurance is still indicating low penetration levels and poor solidity in rural India. Rural people opt for insurance policies and pay their premium for limited period and let the policy to lapse neither benefiting them nor benefiting the company. To overcome this insurance companies are introducing Unit Linked Insurance Policies (ULIPs) which do not compel on any specific regular premiums. This study analyses the preferences and buying motives of rural customers for ULIPs. Statistical tools like percentage, range, ANOVA and chi-square were used to analyze the situation prevailing in the market. The results reveal that information provided by the Agents and media have a specific role to play over the rural customer.