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Term Insurance for Young Professionals

The document discusses research on term life insurance uptake in India. It summarizes that while 65% of Indians have life insurance policies, only 20% have term policies. Insights from interviews suggest awareness of the difference between life and term insurance is low. Targeting is focused on ages 22-40, low risk individuals with moderate to high incomes working in MNCs or owning businesses. Personas are identified including digital millennial employees, newly married individuals, and young entrepreneurs to design tailored products for their needs. The proposed positioning focuses on a term product for death, disability and disease through digital channels at competitive prices for healthy customers.

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RiturajPaul
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123 views3 pages

Term Insurance for Young Professionals

The document discusses research on term life insurance uptake in India. It summarizes that while 65% of Indians have life insurance policies, only 20% have term policies. Insights from interviews suggest awareness of the difference between life and term insurance is low. Targeting is focused on ages 22-40, low risk individuals with moderate to high incomes working in MNCs or owning businesses. Personas are identified including digital millennial employees, newly married individuals, and young entrepreneurs to design tailored products for their needs. The proposed positioning focuses on a term product for death, disability and disease through digital channels at competitive prices for healthy customers.

Uploaded by

RiturajPaul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Term Insurance:

A low cost life insurance plan, but for a fixed period of time
Primary Research:
 20 interviews
 Varied demographics with participants across different states in India
 (% female; % male)
 (stats about occupation)
Secondary Research:
 65% of Indians have purchased a LIC policy, but only 1 out of 5 Indians have purchased
a Term Insurance Plan. (Source)
 A mkt. research firm study states that IPQ (degree to which an individual feels
protected) in India stands at a lowly figure of 35
 Term insurance uptake in urban India has been very low despite being the cheapest form
of financial protection
Key Insights
 Awareness about basic difference between life insurance and term insurance is still
lacking among urban Indians.
 Many equate insurance products to investment products, and thus a higher uptake of LIC
in India despite its higher premium cost.
 Most LIC products are sold to consumers by luring them about investment returns,
though the reality is returns from life insurance products are bare minimal.
 Necessary to undertake marketing campaigns to make consumers understand the
importance of insurance products, and not confuse them with investment products.
 Targeting low-risk consumers with higher customer LTV and offering them competitive
premium prices as compared to competitors can be a key strategy to maximize
profitability
Segmentation
 Age (22-32; 33-40; 41-50;51-55;56-62;62 and above)
 Gender (Male/ Female/ Other)
 Income (High Disposable income)
 Education (Financial literacy high, moderate, low)
 Occupation (Employee at MNC, Business Owners, Others (Farmers, laborers, seasonal
jobs)
Targeting
 Based on segmentation, we have formed personas of our probable target group.
 Our target group would include individuals between the ages of 22-40 year olds.
 Low risk individuals identified based on our data science and machine learning
algorithms.
 Offer premium at competitive rate to the low risk individuals.
 Working professionals working as employees in Multinational Corporations, owners of
MSMEs, teachers and professors in public and private educational institutions
 Target groups having moderate to high monthly income (50k – 2lakhs)
 Target institutional clients like MNCs and educational institutions to offer term plans to
their employees
Based on our targeting, we have identified few personas for whom we can design the products to
fulfil their needs.
Persona 1: The Digital Enthusiast Millennial
 25-30 year old male or female
 Unmarried
 High on life, healthy individual
 Employee at an MNC
 Monthly Income between 50,000-1lakhs
 Comfortable with electronic gadgets
Persona 2: The Newly Married/ Young Parent
 30-35 year old male or female
 Newly married
 Working individual (preferably employee in an MNC)
 Comfortable with electronic gadgets
 Monthly income between 75000-1.5lakhs
Persona 3: The Young Entrepreneur/ Business Owner
 30-40 year old male or female
 Young entrepreneur in urban areas/ MSME owner in semi urban areas
 Recently taken up loans/ incurred liabilities for their business enterprise
 Fairly comfortable with electronic gadgets
 No fixed monthly income (Ranging from 50000-2lakhs)

Positioning:
Product: Term-insurance product focused on 3Ds (Death, Disability and Disease)
Place: Through insurance agents, apps (less paperwork), websites, KYC
Price: Competitive premium prices for healthy individuals (Customers with high customer LTV)
Promotion: Social Media, Television Ads, Panel Discussion in News Shows, Knowledge sharing
sessions for employees at MNCs
Position the product as a purely insurance product (flexible, low cost, adjustable coverage for
time period, low paperwork, easy claims processing and as an insurance product that helps
millennials prepare for the unexpected in this VUCA world

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