Why in India, the people does not come forward and buy life insurance?

Question

When a people buy a car, or any vehicles, it is compulsory for them to insure it. But while comes to insure their own life, they never buy happily. Either take it for tax saving purpose, or if he is convinced by some good life insurance agent advisors.
Why people think that agent advisors are getting benefitted, why don't they think that they are insured for their life and after them, their family is going to be secured in future.
Especially woman, who never think of insure herself. If husband is working he has life insurance, but they never think of their spouse. Why?????????
IS OUR VEHICLE IS MORE IMPORTANT THAN OUR LIVES????????????
Since I am in this field since last two years and above, and I had a real feeling on life insurance policy. It is difficult to convince people to sell them policy. Though it should be such that person who does not have life insurance, they should come forward and buy it. Don't think that the agent is getting benefitted. It is their way of earnings.

Answer 1

Now a days people are aware of life insurance and going for it through known good lic agents. yes I am getting business through the ad of mouth from my clients.

they take vehicle insurance because it is mandatory otherwise police people will fine. But no such penalties or punishments for not having life insurance. But they pay the penalty when they face such a problem of loosing life of the head of the family and then they realise.

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Answer 2

The feeling of being "karta" (Performer) is less in Indians as compared to the people outside India. The reason being that birth, death & destiney is predetermined (fate). Secondly the duration of Life Insurance is normally for a longer period. Any break in payment (beyond the control of the insured) leads towards lapse of policy. Surrender value of the lapsed policy is very meagre amount. Lack of suitable mechanism for re-adjustment of policy amount, term of policy (period) and subsquently re-adjustment of premium discourages the investors to take further LIC policy. If the said problems are addressed suitably, undoubtedly the position will improve.

Answer 3

Don't worry, your sound more like frustted insurance agent, your scenario not only happen in India, believe me. I believe life insurance business is not new in India but not many people aware of that, sorry to say that. You should believe urself, if one reject...I must believe there are many people out there want ur service. Just be patient, do more activity, meet many many people and educate them. First, we they know how important the life insurance, then they know who should they consult. ehmm.. I like to share and add here, u should not sale life policy, people will get paranoid or afraid because they need to BUY. You know what I talking about right?

Answer 4

From the beginning Insurance in india is sold with NEGATIVE approach i.e.
1. You Get it only when you die!
2. If you do it you will save on TAXES
Both slogans try their best to INJECT fear in the mindset of the people. So people's sub-conciousness is invarioubly linked to INSURANCE = NECESSARY EVIL (The consumer "black box" approach to marketing by P. Kotler)
When only companies stop this kind of negative approach this business can be taken with positive note. people should stop thinking that insurance is trading on death and related problems.

The more positive approach should be as under:
Dear Customer! You are a great person. Let yourself estimate your life earnings. say permonth comfortable life in a middleclass middle socity nowadays costs Rs.12,000/- p.m. given your education etc., your effective earning should not be less than 1.5 lacs p.a. and for effective earning age with current price levels rise = age of 60. Today you are only 31. Balance earning period is 29 years Value = 29 yrs x 1.5 Lacs x inflation rate = You are worth greater than Rs. 43.5Lacs! Sounds incredible.
You are socially palced well with all relations with this BELIEF that you can earn and spend above sum!
Let your value of life by your standards be reflected. Each of you calculate your value of life and reflect it on a Govt. Certified Paper. Come On Do It! This reflects your value. LIVE OR DIE you are worth what you are supposed to be. Let the truth prevail! Insure now! Declare your value tomorrow!
................. Some variations etc., go ahead with this ego base plan. Ask Expert psychologists, management graduates. Never ask the people who made money by insurance. They will never come out of traditional thinking. Try this ego rise and break the Black Box.
To insure = Better tomorro (is wrong)
To insure = Reflect your value (is right)

Answer 5

this is our mistake that

1. we are not doing marketing and we are not giving service to people

there is a some mistake in our marketting stratagy

we are not explain whole policy to customer thats why they people are an aware about Insurance

2. if we are doing marketting properly then we maintain only our regular customer we are not trying for go far from our home petch

so we can't blem to any bady for that

Thanks
Rikin B Padya

Answer 6

Are you trying to convince us to buy a Insurance policy from you?
Whats the percentage of your commission?
So you benefit while your alive while we have to die to benefit.
Does that answer your question?

Answer 7

yes, when it comes to take policy premium amounts, they will take it without any questions & arguments, when they are supposed to give the death benefit amount, they ask several questions, aisa kardethe mera paisa mile to bus bolke log sochnapadthe, and I think in India there is no or least value for life, compared to other countries.

Answer 8

I think there are many better schemes than life insurance

Answer 9

some standard life insurances are there.. and that is valid in abroad ... and local one.. for example ingvyasa

Answer 10

I can understand your feelings. but remember insurance is a subject matter of solicitation. you do not expect it to be a demand product.