MARKET SEGMENTATION FOR

ASSURED INCOME PLAN

By: Alokranjan (Nokia)

This Photo by Unknown Author is licensed under CC BY-SA

 Assured Income Plan
Mains Features of this plan:
Annual Premium of 100K

Policy Premium Duration: 15 Years

Death Benefit: 26 Lakh

Maturity Benefit: 200K (From 15th year till 29th year

3oth Year: Maturity Benefit: 550000

 Geographic
Key Findings from the market research:
◦ Most people from urban areas prefer to opt for assured income plans compared to people residing in
hinterlands.
◦ There are many markets which are still un-tapped. For example, there is a tremendous potential in the
markets of states like Madhya Pradesh, Uttar Pradesh, Haryana, Bihar, Jharkhand and many more.
◦ Highly dense states/cities are the major market for assured income plan because of their proximity and
propensity to earn more and invest more in policies which assure them of fixed returns on their
investment along with other insurance associated benefits.
◦ The villages and tier-III cities are still in the take-off stage to become the main segment for our policy,
but with due course of time, they have to potential to rise and could be a suitable prospective
customers for our assured income plan, considering the variations associated with the rural economy
which itself is agriculture based.
 Demography
Key Findings from the market research:
◦ Age: - Majority of customers who opt for Assured Income plan are in their mid 30’s to mid 40’s.
It is basically because of more cautiousness towards the risk associated with other available
investment options in the market, along with the rise in their savings and investment capability.
◦ Gender: - Society being dominated by male workforce has its imprint on the segmentation
based on gender too, where male being the majority choosing assured income plan for their
family. At the same time, rise in savings by the working women workforce is giving extra thrust
to investment by women's in such plans and it is being predicted that with the coming years, the
number of female opting for assured income plan might outweigh the male.
◦ Income & Occupation: - People who are having constant source of income either job or a
business are more interested in going ahead with the assured income plans so that they can
averse the risk of uncertainty in the future.
 Psychographic
Key Findings from the market research:
 Psychographic
Key Findings from the market research:
◦ We can see from the aforementioned graphs that the change in securities and savings rate with
the banks or any policy induced change, make the investors think of different avenues to park
their funds and this shows the importance of psychographic factor in segmenting the market for
assured income plans.
◦ At the same time, the positive sentiments in the market associated with the guaranteed returns
on the investment along with insurance benefits, factors the psychographic parameters and
induce the investors to opt for plans like assured income plans.
◦ Human being is a rational profit oriented economic driven individuals who after analysing the
different available options chooses the plan for their investment. Hence, assured income plan
gives a great opportunity as a low hanging fruit which can be leveraged with least risk and extra
benefits.
 Behavioral
Key Findings from the market research:
There is famous saying that, “Don’t put all your eggs in one basket”. This quote is a kind of
prescriptive behavioral advise for the investors which they generally follow to averse the risk
associated with their investment portfolio by diversifying it.
◦ Behavior is one of the crucial factor which plays a pivotal role in determining the orientation of a
person towards the investment options.
◦ People do have a positive stand when it comes to the plans like assured income plan, generally opted
by them to contain the risk and go along with the assured guaranteed income on their investments.
◦ At the same time, quite few are bit skeptical about the rate of return over a period of time
considering the total tenure of policy plan and effective rate of interest which they find to be bit
lower compared to other available options in the market.
 Why people opt for assured income plan?

• Tax-free monthly income: - The plan ensures that once the premiums are completely paid, the
policyholder can get monthly income payouts for a definite tenure. The income received under
the plan is exempted from tax as per the Income Tax Act, 1961. Thus, the plan also carries tax
benefits.
• Immediate payout: - You do not have to wait for years after completing the payment of
premiums to get payouts. As soon as the tenure for premiums is done, the policyholder can
begin receiving the assured sum as the monthly payout.
• Guaranteed protection: - The monthly income scheme also provides death benefits under its
guaranteed protection. As per the norms, in case the policyholder dies during the tenure of the
guaranteed income plan, then the person named under the nominee will get the option to either
receive the death benefits as a lump-sum amount or as an income for ten years after the
demise of the policyholder.
 Why people opt for assured income plan?

• Alternate source of income

• Maturity Benefit
• Family security
• Tax benefits
• Future financial needs
• Flexible terms
• Loan benefits
Thank You !...