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Summer Internship Report on

“A STUDY ON CONSUMER PERCEPTION IN WORKING PROFESSIONALS TOWARDS

TERM LIFE INSURANCE”

Submitted to
Amity University Jharkhand

In partial fulfillment of the requirements for the award of the degree of MASTER
OF BUSINESS ADMINISTRATION

By

VIJAY APURVA
A35101921002.

Under the guidance of

Mr. YOG MISHRA

AMITY BUSINESS SCHOOL,

AMITY UNIVERSITY JHARKHAND,
RANCHI.
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August /2022

DECLARATION

I, VIAJY APURVA, student of Master of Business Administration hereby declare that the
Project titled “A STUDY ON CONSUMER PERCEPTION IN WORKING PROFESSIONALS
TOWARDS TERM LIFE INSURANCE” which is submitted by me to Department of
Management, Amity Business School, Amity University Jharkhand, in partial fulfillment of
requirement for the award of degree of Master of Business Administration, has not been
previously formed the basis for the award of any degree, diploma or other similar title or
recognition. . I further declare that report is written by me, and no part of the report is copied
from any source(s) without being duly acknowledged. If it is found to be plagiarized beyond
acceptable limit, I owe the responsibility and action can be taken against me as per
University Rules & Regulations.

Amity University Jharkhand, Ranchi

Date:

Sign. of the Student

Name of Student: VIJAY APURVA
Enrollment Number: A35101921002
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CERTIFICATE

On the basis of Project Report submitted by VIJAY APURVA, student of Master of Business
Administration, I hereby certify that the Project Report “A STUDY ON CONSUMER
PERCEPTION IN WORKING PROFESSIONALS TOWARDS TERM LIFE INSURANCE”
which is submitted to Department of Management, Amity Business School, Amity University
Jharkhand in partial fulfillment of requirement for the award of the degree of Master of
Business Administration is an original contribution with existing knowledge and faithful
record of work carried out by him/her under my guidance and supervision.

To the best of my knowledge this work has not been submitted in part or full for any Degree
or Diploma to this University or elsewhere.
Amity University,
Ranchi Date:

Signature of Guide(Internal)
Name of the Faculty
Assistant Professor
Amity Business School Ranchi
Amity University Jharkhand,
Ranchi.
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ACKNOWLEDGEMENT

I wish to express my gratitude to Amity University Jharkhand, for giving me an

opportunity to be part of such kind of learning experience, which will verify enhance my
knowledge and skills.

I am grateful to Mr. Yog Mishra for their invaluable guidance and cooperation during
course of the project. He provided me with the assistance and support whenever
needed that has been instrumental in completion of the project.

The project has the regrets experience, the learning, and the exposure. I got through
this project was immense and will surely help me in my future pursuits.
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ABSTRACT

Insurance, a fundamental method of risk management, protects against the loss of financial benefits
from assets. These assets can be people's assets or physical assets such as machinery and buildings.
Assets are subject to the risks that are unexpected or unforeseen. Risk has a financial or economic
impact, but insurance protects against these impacts. The intersection of insurance and the increase in
insurance plans gradually replaced insurance for the uninsured. There are still concerns about the
level of knowledge about life insurance as a product and its importance. Analyzing customer
behavior in this area is useful in raising awareness of the industry among the working class and
understanding their perspective. One of the key insights that any business can leverage is consumer
behavior when making data-driven decisions.
This study focuses primarily on the purchasing habits of working professionals in relation to term
insurance policies. The study considers various factors that influence customer behavior, such as
awareness, perception, and attitudes of working professionals. The many factors that motivate and
discourage working professionals from purchasing life insurance are an important subject of this
research.
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TABLE OF CONTENT

SL.NO TITLE PAGE.NO

Preliminary Pages 2-4
Deceleration
 Certificate
Acknowledgement
1. INTRODUCTION 7-16
1.1 Overview of the industry
1.2 Life Insurance
1.3 Company Profile
1.4 Literature Review
1.5 Objective of the Study
1.6 Need of the study
1.7 Limitation of the Study
2. RESEARCH METHODOLOGY
2.1 Research Design
2.2 Research definition and purpose
2.3 Tools and Instruments for Research 17-18
2.4 Data Collection Process

3. FINDING, CONCLUSION & RECOMMENDATION 19-21

3.1 Finding
3.2 Recommendation
3.3 Conclusion
4. APPENDIX & BIBILIGOGRAPHY 22
4.1 Bibliography
4.2 Plagiarism Report

5. WEEKLY PROGRESS REPORT

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CH-1 INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

Insurance is an important area of research because it is a business that directly or indirectly affects
everyone. Fortunately, all educated people know about the subject of the product, but many who buy
them at the same time know very little about insurance. Insurance can be defined as a profitable
system for reducing inquiries by combining losses. Legal order for transfer of threat in compensation
contract. A for-profit company that creates employment with frugality. Social resources paid by
many of the low-loss people. Or an actuarial system for applied mathematics. In addition to these
aspects, how you look at the most important types of drive and insurance results is important.
Insurance is one of the most instigative deals involving humans. Insurance can be defined in a sense
related to its profitable nature, or in a sense related to its legal nature. When studying the insurance
business, you need to precisely define important terms.
1. Loss- When commodity is gone, commodity is less else
2. Perils- Events that can beget fiscal loss. Fire or storm.
3. Hazard- Hazard is a source of increased threat Danger causes loss. Thus, the peril is the cause,
and the loss is the result.
4. Threat- Can is defined as the eventuality for adverse consequences performing from an event.
This is a condition that may diverge from the anticipated or anticipated asked result.
Insurance is a plan that financially helps in red vision the cost of unanticipated losses. An insurance
plan pool that summarizes a large number of pitfalls. unanticipated profitable losses have passed
throughout mortal history. Similar losses will continue to do anyhow of whether or not an insurance
system is in place, but by operating an insurance system, you can prognosticate the loss before it
occurs. Pre-damage certainty is an abecedarian demand for the operation of an insurance system.
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1.2 LIFE INSURANCE

Insurance can be described as a social tool to reduce or eliminate the risk of loss of life or property.
Insurance is a collective risk burden. Insurance companies distribute risks and losses from a small
number of people to a large number of people. This is because people prefer small, fixed
responsibilities to large, uncertain, and changing responsibilities. Insurance is a system of economic
cooperation in which members of the community share inevitable risks. An insurance policy can be
defined as a legal contract between two parties, called an insurance company, who agree to pay a
fixed amount in the event of a particular event. This can be certain or uncertain. The other party,
called an insurance company or insurance company, pays a fixed amount called a premium.
Insurance companies and insurance companies are also known as guarantors, underwriters, and
guarantors, respectively. Document containing the contract is called a policy.

LIFE INSURANCE BENEFITS

Life insurance is designed to minimize the impact of the financial loss that a family member may
incur in the event of death. Such a plan has four advantages and is correctly summarized in the
acronym "LIFE".

 Liability Free
Life insurance empowers your family to be self-sufficient and self-sufficient. Get in the car. Personal
or credit card. Term life insurance also covers hospital costs and serious illness treatment and offers a
comprehensive protection package.

 Income Replacement
If you are the only earner of your family, the Life insurance plan is yours Is a family you can provide
a guaranteed income to anyone. At months, make sure your daily life is unobtrusive and financially
stable.

 Education and other expenses for dependents

Life insurance payments help fund children's education and marriage and medical expenses

 Immediate Expenses after Demise

It also helps families cover some of the basic costs immediately after death, such as funeral and
medical expenses
Life Insurance Goal
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 Life insurance is growing and offer little compensation to the masses at a reasonable cost

 Mobilize people’s savings through insurance linked saving program

 Invest funds to best serve policyholders and the country.

 Innovation and adapt to meet respond to the changing needs of the life insurance community.

Term Life Insurance

Life insurance is a contract between an insurance company and a policyholder, in which fixed
payments called "premiums" are made over a period called "periods" and instead the company
promises a lump sum payment. This is "death insurance". Or, in the case of the unfortunate event that
the person (Life Assured) died in the family (Nominees), "Summe Assured".
Term life insurance is the very basic form of life insurance They provide life insurance in case of an
accident without savings. It is the cheapest life insurance because the premium is cheaper than other
life insurance. The importance of term life insurance cannot be overturned. Term life insurance helps
provide better protection by covering death, illness, and disability. Term life insurance is available at
a low premium.

Consumer Perception

Merchants aim to increase their sales by identifying what drives a customer's purchase decision.
Consumer cognitive theory attempts to explain consumer behavior by analyzing motivations to buy
or not buy specific items. Three areas of consumer perception theory are related to consumer
cognitive theory: self-perception, price perception, and quality-of-life benefit perception.
Sales and marketing overview including the customer's impression, perception and/or perception of a
company or its services is known as customer perception. Customer perception is often influenced by
advertising, reviews, public relations, social networks, personal experiences, and other channels.
A marketing concept consisting of a customer's impression, perception and/or perception of a
company or its services. Customer perception is often influenced by advertising, reviews, public
relations, social networks, personal experiences, and other channels. Customer perception refers to
the process by which customers select, organize and interpret information/inputs to create a
meaningful brand or product image. It is a three-step process that converts raw stimuli into
meaningful information.
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STAGES OF PERCEPTION

EXPOSURE ATTENTION INTERPERTATION

The three stages of perception are:

 EXPOSURE: In order to form perception, it is absolutely necessary that a person be in

contact with a certain object or substance. This is the first step in perceptual formation.

 ATTENTION: After an individual has been exposed to a certain thing or material, it is

obvious that he will notice it. Now, it depends on the perception or experience of each
individual whether this attention lasts or not. This is the second stage of perceptual formation.

 INTERPERTATION: The third stage in perceptual formation is interpretation. In it, an

individual calculates and interprets the thing or document that comes into contact with him
and makes the calculation and interprets it according to his experience.
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1.3 COMPANY PROFILE

The Shriram life insurance company works with the reason - To get each family the Indian culture,
particularly the portion generally powerless against the monetary effects of the passing of a provider,
into the wellbeing net of Disaster protection. Functional productivity, honesty and a solid spotlight on
taking care of the requirements of the typical Indian, by offering him top notch and savvy items and
administrations, are the guiding principle that drives the association. These qualities have been
emphatically stuck to throughout the long term and are presently a fundamental piece of the
association's DNA. The association exceptionally regards its significant cognizance of the client.
Each thing or organization is tailor-made to unequivocally suit the necessities of the client. It is this
coordinating perspective of putting people first that has carried the social event association closer to
the grassroots and has made it the inclined toward choice for all truck supporting requirements
among the clients.
Shriram Life Insurance Company, otherwise called (SLIC) was established in the year 2005 and
started activities in the year 2006. SLIC is notable for their productive utilization of capital and low
functional expenses. All out number of guaranteed lives is in excess of 26 lakh. Shriram Life
coverage Organization is a joint endeavour between Shriram Gathering established in 1974, settled in
Chennai and Sanlam, a main monetary administrations bunch situated in Cape Town, South Africa.
Together, Sanlam and Shriram's gathering means to give the best life coverage items to provide food
various sections of Indian market. In 2016, Shriram Extra security Organization got the Bizz
Americas 2016 Honours. The organization's goal points in 'contacting the everyday person with items
and administrations that would be useful to him/her as they set before out the way to prosperity.'

Highlights of Shriram Life coverage

 Shriram Life has in excess of 528 branches with far beyond 1.45 crore clients.
 Shriram Life timed Rs.1020 crore gross premium in 2015-2016.
 The organization has an organization of 609 workplaces and 75,000 specialists across India.
 Shriram has a remarkable Endorsing Record and has granted as 'Guaranteeing Drive of the
Year.'
 Shriram Extra security creates over 40% business through giving protection to country region
and more vulnerable section people - 'AAM AADMI' of India.
 The Pioneer behind Shriram Gathering, Mr R Thiagarajan, has been granted with Padma
Bhushan grant.
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Advantages of Shriram Disaster protection

 Monetary Insurance: Plans which give monetary security to your loved ones.
 Adaptability: Adaptable premium and pay-out choices.
 Online plans: Explicitly planned web-based plans that costs lower. Assortment: Offers an
assortment of online as well as disconnected plans.
 Client support: Offers great, bother free pre-deals and post-deals administrations.
 Tax reductions: Save charge on all expenses and pay-outs under the segment 80C and
10(10D) of Personal Assessment Act, 1961.

Disaster protection Plans by Shriram Extra security Organization

 Shriram Life Family Assurance Plan: This plan takes special care of the requirements of
individuals who need to safeguard their families in the event of a less than ideal demise. It
offers adaptability in paying expenses - Month to month (exclusively by ECS) or Every year.
The protected has the choice to choose to whom the 'Demise Aggregate Guaranteed' must be
paid in the event of an unfavourable passing.
 Demise Advantage Pay-out choice - The policyholder can decide on either a single amount
choice or portion choice. In the event of a single amount pay-out, the passing total guaranteed
is paid without a moment's delay and the strategy ends. On the off chance that, then again a
policyholder settles on a portion choice, the half of the total guaranteed is paid as a single
amount sum and the rest is paid in 5 equivalent yearly portions. There are no endurance
benefits. The base qualification age is 18 years while greatest is 60 years with a total
guaranteed going between INR. 15,00,000 to 5 crores.
 Shriram Life Money Back Term Plan: The Shriram Life Money Back Term Plan features
single amount pay-out in the event of a lamentable demise of the safeguarded to safeguard the
monetary security of his/her relatives. It offers adaptability in paying expenses - yearly, half
yearly, quarterly and month to month with a choice to pick strategy term according to
10/15/20/25 years.
 Demise Advantage Pay-out choice - The total guaranteed on death is paid provided that all
the expenses have been met. The demise advantage will be higher of essential aggregate
guaranteed or if nothing else 105% of all the charges paid. The base qualification age is 12
years while the greatest is 50 years with a total guaranteed going between INR. 2,00,000 to
INR. 20,00,000.
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Add on benefits incorporate Rider choices

 Mishap Advantage Rider: In case of death of the life guaranteed because of a mishap or
unintentional long-lasting handicap, the rider total guaranteed is paid. On account of a super
durable inability, the future charges are postponed.
 Family Pay Advantage: Under this rider, 1% of total guaranteed will be paid consistently for
a reliable time of 10 years or till the finish of the rider term whichever is higher, on the off
chance that the existence guaranteed kicks the bucket because of a mishap or turns out to be
absolutely and for all time impaired because of a mishap.
 Basic Disease Cover: This rider covers 6 significant basic sicknesses - Malignant growth,
Respiratory failure, Stroke, Kidney Disappointment, Coronary Supply route Sidestep A
medical procedure and Significant Organ Relocate. On the primary conclusion of any of the
six basic sicknesses, the rider advantage will be paid as a single amount benefit.
 Shriram Life Secure In addition to Plan: This plan is comparable in capability to the ones
referenced above where you have adaptability in paying charges - yearly, half yearly,
quarterly and month to month with a choice to pick strategy term according to 10/15/20 years.
Rider choices contain Coincidental Advantage, Family Pay Advantage and Basic Ailment
Cover.
 Passing Advantage Pay-out choice: The demise advantage will be higher of essential
aggregate guaranteed or development total guaranteed or possibly 105% of all the charges
paid. The base qualification age is 18 years while the most extreme is 50 years with a total
guaranteed going between INR.5,00,000 to INR. 20,00,000.

Awards Won by Shriram Disaster protection Organization

 The Bizz Americas 2016 Honour - Shriram Disaster protection.

 Best Disaster protection Organization - BFSI Grant, ABP News.
 Worldwide Curve of Europe' grant - Frankfurt 2015.Indian Protection Grant for Non-
Metropolitan Inclusion - Extra security - Finetelekt, SP Media Pvt. Ltd.
 Administrative Greatness Grant 2015 - For greatness in different regions - Madras The board
Affiliation.
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1.4 LITERATURE REVIEW

Life insurance research literature is extensive and covers several factors.

The following section outlines the studies referenced in this study.
Zatul Karamah Ahmad, Baharul Ulumetal. A paper entitled "The Impact of Socio-Economic Factors
on Life Insurance Acquisition" by. The author focuses on three key factors that influence a
customer's purchasing decisions: demographic, socio cultural, and psychological. The methodology
used for the study was primary data collection using hypothesis testing and questionnaires. In
conclusion, the authors said there could be many factors that discourage people from buying life
insurance.
NCAER's Pre-Insurance Campaign Survey Reorganization discussed various factors regarding the
recognition and recognition of both general and life insurance. In the survey, insured and uninsured
households were sampled from both rural and urban areas. As a result, it was found that the
percentage of households with life insurance is high. This may be because they are not familiar with
the coverage of other insurance available on the market. Studies show that people do not understand
the coverage of insurance offered under a particular insurance plan, resulting in low insurance
penetration.
Sinha and Tapen (2005), in their research paper “Indian Insurance Industry: Challenges and
Prospects”, stated that India is one of the most promising emerging insurance markets in the world.
However, the entire Indian premium market, especially life insurance, is currently paying 80% of the
premiums.
Doctoral degree. Dissertation entitled "Behavioral study of life insurance purchasing decisions",
Manohar Giri aims to understand the behavioral aspects of insurance purchasing decisions. The thesis
focuses on understanding consumer behavior associated with the decision to buy life insurance in the
Indian context. However, key variables related to financial behavior such as financial literacy and
financial inclusion were not taken into account. This could be an important test factor in this study.
Subir Sen (2008), in his paper “Analysis of the determinants of life insurance demand for selected
Asian economies and India”, tried to understand the economy. Other socio-political variables, which
may play an important role in explaining life insurance consumption patterns in Mainland China and
six ASEAN countries during the 11-year period 1994-2004, and also tried to reassess those variables
for the best. explain the life insurance consumption patterns of the twelve Asian economies selected
in the panel that were important to India between 1965 and 2004
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1.5 OBJECTIVE OF THE STUDY

 Know the profile and characteristics of the potential buyer.

 Gain insight into attribute to term life insurance.
 Gain insight into customer attitudes and behaviors.
 Discover the difference between perceived services and expected services.
 Prepare executive service reports to update service features of life insurance companies.
 Understand consumer preferences.
 To find out how satisfied consumers are with their current brand insurance products.

1.6 NEED OF THE STUDY

 The better the company understands the needs and perceptions of consumers, and the sooner
the product is introduced before the competition, the higher the expected contribution rate.
Research is therefore very important.
 Can understand the consumer market and consumer buying behavior before building good
products and marketing plans
 This study will help companies personalize services and products, according to consumer
needs.
 This research will also help companies understand the experiences and expectations of 4044
existing customers.
 In addition to creating, manufacturing, and distributing life insurance products, thorough
research of consumers, preferences and needs for of their products is essential to establish an
effective marketing network

1.7 LIMITATIONS OF THE STUDY

Although the study was conducted with enthusiasm and careful planning, several limitations hindered
the research, namely

Time constraints:
Time allotted to the project less complete and so there is a chance that some possible information has
been omitted but takes care to include all necessary relevant information.
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Sample size:
Due to time constraints, the sample size is relatively small and would certainly be more
representative if I collected information from a larger number of respondents.

Accuracy:
It is difficult to know whether all respondents provided accurate information; some respondents tend
to provide false information
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CH-2 RESEARCH METHODOLOGY

Research is the process in which the researcher wishes to find out the end result for a given problem
and thus the solution helps in future course of action. The research has been defined as “A careful
investigation or enquiry through search of new facts in any branch of knowledge.”
The procedure using, which researcher go about their work of describing, explaining & predicting
phenomena, is called methodology. Method comprises the procedures used for generating, collecting
& evaluating data. Methods are the ways of obtaining information useful for assessing explanation.

2.1 RESEARCH DESIGN

Research design is the specification of the method and the method and the process to acquire the
information needed to solve the problem.
Degree of Research Question: Explanatory study has been done for the relationship between
employees’ productivity & motivation. The study will contribute the aspects of employees before
motivation and after motivation effect on productivity.
Research Instrument: Questionnaire is the research instrument used here. The researcher has
effectively used both open ended & closed ended question.

2.2 RESEARCH DEFINITION AND PURPOSE

 To study the perception of professionals working on time planning.

 Studying the perception and attitudes of working professionals towards semester planning.
 Investigate various factors that encourage and discourage working class purchasing decision
regarding term plan.

2.3 TOOLS AND INSTRUMENTS FOR RESEARCH

The researcher needs to define the conceptual structure of the research being carried out. The
function of study design is to enable the collection of relevant evidence with minimal effort, time and
money.

Means of information collection through:

• Secondary data such as journals, articles, online journals, Internet, etc.
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2.4 DATA COLLECTION PROCESS

Data compilation is the intermediate step between data collection and data analysis. Data compilation
includes classification and aggregation to make the data vulnerable to analysis.
To solve any problem, once the sample has been selected, data must be collected from the sample
population. There are a number of ways to collect pertinent data that vary greatly in terms of financial
cost, time, and other resources. They can be broadly classified into two categories.

Two data collection sources are:

1. Primary source
2. Secondary source

Primary source of data collection:

Primary data is data that is collected based on first-hand information. I did not use primary data in my
research

Secondary sources of data collection:

The secondary data included in my research was the information I collected through various company
brochures and pamphlets.
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CH-3 FINDING, RECOMMODIATION, CONCLUSION

3.1 FINDING

 Now, term life insurance has become popular. People just believe in the term life insurance
company and therefore everyone wants to buy a policy with LIC. It will take a long time for
private companies to win people's trust.

 When it comes to future policy decision making, most policies will fall within the savings
plan.

 LIC is the oldest player in the insurance market, so it is more known to people i.e.
Compared to newer players

 It is clear that most people prefer to buy a beneficial policy tax for them.

 A/c to survive, obviously most people don't take term insurance policies because they don't
understand how policies work!

 Most people are influenced by family and friends when they buy term insurance policies.
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3.2 RECOMMENDATIONS

 The document advises private insurers to focus on their digital marketing efforts, as the
perception of working professionals is heavily influenced by social media and the internet.
 Private insurers should strive to improve and maintain claims payout ratios as this is one of
the important factors that encourage practicing professionals to purchase life insurance
policies.
 Since working professionals worry about saving on premiums, companies should try to make
premium more affordable to attract more customers.
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3.3 CONCLUSION

Awareness among working professionals is relatively higher, with 95% of working professionals
familiar with the concept of life insurance while 80% are familiar with term plans. Awareness is
made by family, relatives, close friends, and social networks.
Perceptions of working professionals on term life insurance mainly include family security, death
benefit, risk protection and life insurance up to a certain age. The value of working professionals in
regard to term planning is relatively low due to lack of accurate financial knowledge. About 20%
have absolutely no idea about the long-term plan, while the remaining 80%, only about 40% have a
good idea about the long-term plan.

Working professionals’ attitudes towards term packages are pragmatic and rational rather than
emotional, as their decision to purchase term packages is associated with many benefits such as
family protection, large sums insured for reasonable premiums and tax savings. There is little
sentimental value attached to buying insurance for working professionals.

Lack of awareness, lack of personal saving or wages, unprofitable profits and poor after-sales
services and the main factors that prevent working professionals from purchasing timed packages.
Brand image and company reputation, good claim ratio, tangible benefits with good profit
component, good range of products with customizable benefits, repair system good and good after
sales service are the main factors that encourage working professionals to buy futures packages.
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CH- 4 APPENDIX & BIBILIGOGRAPHY

4.1 BIBLIOGRAPHY

• http://shriramcapital.com

• https://www.shriramcity.in/corporate/shriram-group

• https://shriramlife.com

• https://www.coverfox.com/life-insurance/life-insurance-companies/shriram-life- insurance/.

• https://www.investopedia.com/terms/p/porter.asp

• https://en.wikipedia.org/wiki/Methodology

• https://www.bhu.ac.in/fms/BHUMgmReview/BHUMReview-Vol.9-68-74.pdf

• C. Sandeep (2016). Consumer Perception Regarding Life Insurance Policies: A Factor

Analytical Approach.

• K. A. Zatul, U. Baharul, S. T. Lim (2014). Socio-Economic Factors Influence on Life

Insurance Acquisition Al Proceedings of the 3rd International Seminar on Entrepreneurship
and Business

• S. Subir (2008). An Analysis of Life Insurance Demand Determinants for Selected Asian
Economies and India.