IMPORTANCE OF LIFE INSURANCE MARKETING

Life insurance marketing is the design, implementation and control of programmes seeking to increase the acceptability of a social idea or practice in a target group. It utilizes concepts of market segmentation, consumer research idea configuration and communication, facilitation, incentives and exchange theory to maximize target group response.

Absence of insurance market acts as a deterrent factor to capital formation and economic growth. The insurance market serves as an important source for the productive use of the economy's savings.

The importance of life insurance market can be briefly summarised as follows :

1. It mobilizes the savings of the people for further investment in unproductive uses and thus avoids their wastage.
2. It provides incentives to saving and facilities capital formation by offering stable rate of interest and bonus as the price of their investment.
3. In facilitates increase in production and productivity in the economy and thus enhances the economic welfare of the society.
4. Insurance market consisting of expert intermediaries promotes stability in value of defferent insurance schemes.
5. Insurance marketing generates employment.
6. Insurance marketing makes available new variety of useful and quality life insurance products to consumers.
7. Insurance marketing is the sole sources of business income.
8. Insurance marketing converts latent demand in to effective demand and thus enables people to raise their standard of living. Insurance marketing converts latent demand in to effective demand and thus enables people to raise their standard of living.
9. Insurance marketing is a connecting link between the consumer and producer.