A STUDY ON ISSUES AND CHALLENGES OF LIC POLICY HOLDERS IN KANNIYAKUMARI DISTRICT

Abstract

Life insurance is a vital financial tool that provides individuals with long-term financial security, risk protection, and savings for future needs. In India, the Life Insurance Corporation (LIC) offers a variety of policies to meet diverse requirements. This study focuses on LIC policyholders in Kanniyakumari District, examining their socioeconomic profile, policy preferences, and the issues and challenges they face. Data were collected from 210 respondents using a structured questionnaire and analyzed through descriptive statistical tools such as percentage analysis, ranking, and mean scores. The findings reveal that policyholders are predominantly middle-aged, male, married, moderately educated, and mostly engaged as LIC agents or in other occupations, with moderate-income levels. Traditional policies such as Endowment, Term, and Money Back are most preferred, while modern investment-linked plans like ULIP are less popular. Major challenges include lack of awareness, difficulty understanding policy terms, claim delays, limited agent support, and financial constraints, with younger respondents mainly affected by awareness issues and older respondents facing financial and claim-related difficulties. The study highlights the need for awareness programs, simplified policy communication, improved claim settlement, strengthened agent support, and flexible payment options to enhance policyholder satisfaction and participation in LIC schemes.