Who buys Insurance

Insurance products are sold in the market through soliciting by distributors including insurance sales, agents and brokers. Consumers do not purchase insurance as a matter of necessity. Consumers usually need to be convinced about the usefulness of an insurance product. Insurance products are not given priority by individuals. The reasons for this include:

• Unawareness of such products
• Limited savings of potential consumers
• Facilities for the purchase of contract are not available (like sales counters, insurance offices and agents)
• The insurance product is too difficult to understand,which is not easily understood,full of technical jargon
• Products that are needed by consumers are not designed or available
• Consumers do not have enough trust on the insurers and the products sold by insurers
• Consumers prefer other financial products with savings

The segments and types of people needing insurance product include:

• Children, Youth, Old 
• Married and Single
• Men and Women
• Rich and Poor
• Individuals and Co operations

The type of insurance product required by each of the type of people will determine the insurance policy.

• General Insurance requirements include insurance for Fire, Motor, Marine and Miscellaneous risks
• Life insurance requirements include Immediate and Deferred Annuities, Money Back Plans, Unit Linked Plans , Endowment Assurances, Term Insurance and Whole Life Insurance.