In the globalization policy, insurance companies face a dynamic global business environment. The existing insurers are facing challenges from non-traditional competitors who are entering into the retail market with new approaches and through new channels. While quality of service is the main influencing factor in the finance market, in the insurance market, product attributes are the main factors that influence the success of insurance companies. Though, there has been growth in life insurance industry over the past years, comparatively, insurance penetration in India has not increased in spite of the considerable growth potential of Indian life insurance market. With liberalization, many insurance players have entered this field from the year 2000, and the task before them now is to identify what factors the prospective policyholders look for in selecting the policy and to what extent these factors influence in decision-making. In this context, this study assumes importance. The main objective of the paper is to identify the factors which the consumers take into consideration before selecting Life Insurance Products and determine the extent to what these factors are taken into consideration for choosing the life insurance products. This research is carried out by collecting primary data from 200 policyholders of Life Insurance Corporation of India through self-structured questionnaires. The sample consists of 100 policyholders from urban area and 100 policyholders from rural area. c² test is employed to test if there is any association between Residency and Attributes of the product. Further, Proportional Method of Association is used to find out which factor has more influence. Both, product and non-product attributes have been found to be important in selecting a policy but they have been rated differently. Rating is different in urban and rural areas.

In the globalization policy, insurance companies face a dynamic global business environment. Radical changes are taking place owing to the internationalization of activities, the appearance of new risks, new types of covers to match with new risk situations and unconventional and innovative ideas on customer service. The existing insurers are facing difficulties from non-traditional competitors that are entering the retail market with new approaches and through new channels. Quality of service is the main influencing factor in the market but in the insurance market, product attributes are the main factors that influence the success of insurance companies. The service of the life insurance policy effectively takes place when the promise has to be redeemed. The claim arises at that time and not when the policy is sold. The service takes place in untoward circumstances and it helps to relieve the impact of the tragedy partly, not wholly, to the family members/nominees of the policyholder. A policy is taken by the policyholders not just to cover risk but also as a saving instrument. If there is no risk in the life of the policy, the policyholder can get the maturity amount after the maturity period.

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