It acts as a social security measure.
By providing monetary protection to the policy holder and his family members in case of any calamity or premature death, this scheme reduces tensions and provides for a peaceful life to the policy holder.
The schemes of LIC are meant to encourage saving for old age.
The LIC policies are also useful for meeting certain expenses such as marriage and education of the children. The policy holder can also secure loan for meeting unforeseen expenditure.
The scheme of LIC provides protection and safety to the policy holder and raises the rate of capital formation and contributes substantially for economic development.
Essential of insurance services marketing
Being a personalized service oriented industry, the basic objectives of the LIC should be to provide services that meets and satisfies customer’s need and wants. Marketing of life insurance would involve four basic steps.
First step– to determine financial insecurity of the customers
Second step- design new schemes and polices and innovate the old ones
Third step– profitable marketing of these designed schemes to the potential customers. This would involve pricing, promotion and distribution of these policies.
Fourth step– while doing the above, all care should be taken to satisfy customer’s needs.
The basic objective of the life insurance marketer is a profitable sale of services that satisfies customer’s financial requirements and needs. The various components of this objective could be explained as under:-
A) Developing consumer awareness about life insurance schemes
B) Saving mobilization in the form of premium
C) Providing contiguous improvement in customers care and services strengthening of customer base.
D) Developing a corporate image
E) Reporting a marginal profit
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