Distribution channel of LIC Child

Fortune plus

ANAND.G
MOULAN.S
MANOJ.K
RAVEE KUMAR.M.S
Primary objective of the distribution is to increase the customer base who have a disposable income
level of more than 2 lakhs per annum.

Price: The price of a life insurance depends upon the period by which premium is bieng paid.
Specifications of LIC child fortune plus is given below

Specifications LIC Child Fortune plus

Age (Male) 35 years Margins of intermediaries: Margins of

intermediaries is on commission basis.
Premium 1,00,000
These intermediaries have varied
Sum Assured 5,00,000 commission rates according to the
policy and according to the company.
Benefit Period 20 years These margin rates generally lie
between 7-8%.
Fund Option Growth Fund
Other brands handled by
Premium Paying Term 20 years
intermediaries: Intermediaries may
Maturity FV @10% 45,29,923 handle various other brands also. The
most common brands that these
intermediaries handle are :

• Aviva wealth plus one

• ICICI health plan

Size of network (no of intermediaries): In insurance market only one intermediary is found. That is
the agent who acts on behalf of the company and for the customer.
 Final
Company Agent
customer
Sale volume at each level: Sale volume in insurance sector is increasing day by day. The Insurance
company sell at an average volume of Rs . 140 crores. The Distributor sell at an average volume of
Rs 8 lakhs.

Logistics: There are two modes of selling the insurance Policy 1. Offline: This through the agent who
handles the customer. 2. Online : The insurance forms are available in the internet where it is a
tedious tasks to fill various forms through online medium. Mostly the offline mode of delivery is
preffered by most of the customers.

Promotion by channel members:

1.Company : Most of the promotions are done by the LIC only. They advertise in Televisions, Radio,
Interenet and various other print media. They also ensure in sponsoring for various events and
conferences which deal with the insurance business.

2. Agent : Agent don’t involve in huge promotions instead they induldge in viral marketing which
spreads the word of mouth from one customer to another.

Financial flow in the channel: