Insurance - Comparision Analysis

Life insurance policies are valuable assets to mitigate the financial risk of untimely death. As such, every individual facing such a financial risk who can afford to pay for such a protection must seriously consider purchasing some life insurance. In the current Indian market, this choice is difficult on three counts: Inherent complexity due to uncertainty and long time horizons, The need to compare a plethora of different types of products from competing insurance companies, Most insurance policies bundle pure insurance with savings to offer composite products.

This paper is an attempt at a comparative evaluation of the traditional insurance policies available in the Indian market from a consumer perspective. I use an expected present value approach, data on mortality rates, currently prevailing premiums on insurance policies and interest rates- for the comparison within and across policy types.

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