M. S Primary objective of the distribution is to increase the customer base who have a disposable income level of more than 2 lakhs per annum. Price: The price of a life insurance depends upon the period by which premium is bieng paid. Specifications of LIC child fortune plus is given below Specifications | LIC Child Fortune plus | Age (Male)| 35 years| Premium| 1,00,000| Sum Assured| 5,00,000| Benefit Period| 20 years| Fund Option| Growth Fund| Premium Paying Term| 20 years|Maturity FV @10%| 45,29,923| Margins of intermediaries: Margins of intermediaries is on commission basis. These intermediaries have varied commission rates according to the policy and according to the company. These margin rates generally lie between 7-8%. Other brands handled by intermediaries: Intermediaries may handle various other brands also.
The most common brands that these intermediaries handle are : * Aviva wealth plus one * ICICI health plan Size of network (no of intermediaries): In insurance market only one intermediary is found.That is the agent who acts on behalf of the company and for the customer. Sale volume at each level: Sale volume in insurance sector is increasing day by day. The Insurance company sell at an average volume of Rs . 140 crores. The Distributor sell at an average volume of Rs 8 lakhs. Logistics: There are two modes of selling the insurance Policy 1.
Offline: This through the agent who handles the customer. 2. Online : The insurance forms are available in the internet where it is a tedious tasks to fill various forms through online medium.Mostly the offline mode of delivery is preffered by most of the customers. Promotion by channel members: 1. Company : Most of the promotions are done by the LIC only. They advertise in Televisions, Radio, Interenet and various other print media.
They also ensure in sponsoring for various events and conferences which deal with the insurance business. 2. Agent : Agent don’t involve in huge promotions instead they induldge in viral marketing which spreads the word of mouth from one customer to another. Financial flow in the channel: