A Study on Whether Taxation is a Selling Tool for Life Insurance

Abstract

The Capital Box is a portfolio management firm that aims to provide investment solutions, risk management solutions, retirement planning solutions and consultancy services to the clients. It is non-banking financial institution operating in the financial sector in India. During the period of internship my work was focused in the insurance sector where the interns had to push two life insurance policies in the market. It led to drawing conclusions from practicing and gaining experience in the field that would later factor-in in the project assigned by the firm. A study on whether taxation is a selling tool for life insurance. This study was aimed at objectifying the understanding the consumers’ decision process and motivating factors for buying life insurance and whether tax exemption is one of those motivating factors or not. This was done by collecting interview testimonials of several people working in sales department in life insurance companies and via circulation of a questionnaire for the consumers. Moreover, data regarding tax exemptions and the underlying assumptions was referred to from the government sites and several articles were referred to in order to understand the consumers’ decision-making process. Furthermore, the data and evidences showed that tax exemptions are a good tool for selling life insurance and thus can be used by the sales agents in the sales pitch. Moreover, such study could allow sales agents to develop new pitches and sell more and bring in more revenue. Also, it could be used in developing new marketing strategies for life insurance policies.