A Study On the Effectiveness of Tax Saving as a Selling Tool or Life Insurance Investment Strategy

Abstract

Human life is the most important asset and so the life insurance is the most important type of insurance which provides financial protection to an individual and his or her family at the crucial time of uncertain risks. LIC provides protection to individuals and also encourages savings among peoples. The present exploratory; descriptive based study was selected with an objective to identify whether the insurance is opted for tax saving; it is to infer the period of tax planning; to study the factors chargeable for the choice of life insurance. The data for the research has been collected from primary source. The primary study is limited to Kolkata district; sample size is 170 out of which 149 opted for LIC;10 policyholders of private insurance; the rest 11 opted for both. Researchers had analysed them with the help of various statistical tools like correlation, goodness of fit test and the data has been presented in the form of table, pie charts. Over all findings reveals that most adopted instrument to save tax is insurance, and the second most is the provident fund; it also reveals that most of the customers those who plan for tax they have chosen APRIL, MAY, JUNE and the second most is JANUARY, FEBRUARY, MARCH. Last but not the least the most important factor behind choosing LIC is mostly brand name and second most factor is oldest(trusted) - LIC being an oldest company so peoples became dependent on LIC. So, it concludes that the peoples are mostly aware about brand name, trusted rather than tax saving or flexible premium rate.