Abstract Life Insurance Corporation of India (Lic) Has Played a Major Role in Strengthening India’s Insurance Culture by Offering Diverse Insurance Products Catering to Various Income and Occupational Groups. Policyholders’ Decisions Related to Policy Selection, Premium Affordability, Payment Frequency, And Claim Settlement Satisfaction Are Significantly Shaped by Socio-Economic Conditions. This Paper Aims to Examine the Relationship Between Socio-Economic Factors Such as Age, Gender, Income Level, Education, Occupation, Family Size, And Residential Background, And Their Influence on Policyholders’ Choices in Lic. The Study Is Conceptual and Analytical in Nature and Is Entirely Based on Secondary Data Collected from Lic Annual Reports, Irdai Publications, Government Reports, Scholarly Articles, Research Papers, And Related Financial Journals. The Study Highlights That Income and Education Strongly Influence Policy Type Preference, Premium Affordability, And Awareness About Policy Benefits. Age And Occupation Determine Payment Behavior and Renewal Consistency. Claim Settlement Satisfaction Is Influenced by Financial Literacy, Transparency, And Ease of Procedural Documentation. The Study Also Identifies That Rural and Low-Income Policyholders Often Face Challenges Related to Awareness, Digital Access, And Documentation Requirements.The Paper Concludes That Socio-Economic Background Remains a Significant Determinant of Insurance Decision-Making and Suggests That Lic Should Strengthen Financial Literacy Initiatives, Simplify Policy Communication, And Further Improve Claim Settlement Assistance to Ensure Inclusive Insurance Penetration.
PARCHA et al. (Thu,) studied this question.