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Insurance is defined as a cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. The scenario as a whole is changing and life insurance is increasingly being considered as 'an investment option' by investors and companies. The objective of the study is to evaluate life insurance as an investment option post privatization and also to study a shift in people's preferences from other comparable investment avenues. For the purpose of study two populations were selected. First, was the population of investors across various towns and cities comprising of buyers of life insurance. Within this population various subpopulations were studied on the basis of profession, nature of job, education profile, age group income category, gender and marital status Second, was the population of life insurance companies and within this population sub populations of life insurance companies operating in cities and towns and also the sub populations of life insurance companies operating in public and private sector had been studied. A total of 500 investors and 12 life insurance companies (10 responses from each i.e. a total of 120 responses) were selected for the purpose of study.
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