A Study to Identify Major Factors Affecting Purchase of Life Insurance in Gujarat

The aim of this study was to identify the major factors influencing the purchase decision of customers while selecting life insurance products in Gujarat state. Thus an attempt has been made to study the customer buying behavior with a focus to identify the major factors. Many life insurance related variables were identified from previous studies and respondents of Gujarat state were queried about the product variables which strongly influence their purchase decision. Founded Variables were reduced through factor analysis to find out most influential variables and its importance on purchase decision. Findings reveal that F1 (Service Facilities by insurer), F2 (Socialization of customer), F3 (Easy access for customer), F4 (Product Attractiveness), F5 (Concern for family needs by customer) and F6 (Promotions by firm) are major factors that drastically influence for the choice of any life insurance product.