Changes
/* Constraints */
==Objective==
* To perform sensitivity analysis and qualitatively quantitatively determine the variation in the monthly premium charged by the various life insurance companies.* To understand Life Insurance life insurance companies' behavior towards different segments, which are based on gender and health groups.
==Methodology==
'''Overview of Life Insurance'''<br>
'''Premium Calculation using online Premium Calculator'''<br>
:* [http://www.transamerica.com '''Transamerica Life Insurance companyCompany''']:* [http://www.aig.com '''American General Life company Company (AIGAG)''']:* [http://www.prudential.com/ '''Prudential Financial (Pruco life insurance companyLife Insurance Company)''']:* [http://www.genworth.com '''Genworth Financial (Genworth life insurance companyLife Insurance Company)''']
:* [http://www.ing-usa.com/ '''(ING) Reliastar Life Insurance company''']
:* For men height and weight assigned were 5’8’’ and 176 lbs respectively while for women height and weight assigned were 5’4’’ and 162 lbs respectively.
:* Date of Birth was taken as 3rd March, 1949 (more than 60 yrs), coverage amount as $250,000, the guaranteed term as 15 years and state as California both for male and female.
:* Premiums were calculated considering various health conditions as blood pressure, cholesterol, cardiac problems or cancer in the family, medical advice or treatment for major illness etc. <br>
''Source: http://intelliquote.com''
'''Ratings of Life Insurance the life insurance companies considered'''
'''Sensitivity Analysis'''<br>
==Assumptions==
* Height and weight for both men and women considered are test cases were obtained from the median height and weight prevailing in USA.
* Coverage amount was based on the median annual household income of USA taken as $50,000 and Term duration assumed to be 15 years.
''Source: http://en.wikipedia.org/wiki/Life_insurance''
===Why should people go for Life Insurance Policylife insurance===
* To make sure their family will be well taken care of if they die.
* To minimize tax burden and to ensure whatever they have earned goes to their heirs as since it is a tax free way to transfer their wealth.
* The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
* Some insurance policies like Universal life insurance, whole life insurance and some term life insurance can be settled for cash value, the value that can be borrowed against or cashed in when the owner needs money.
===Types of Life Insurance===
Broadly Life Insurance , life insurance is divided into Temporary Life Insurance classified as temporary life insurance and Permanent Life Insurancepermanent life insurance. These can be further sub -classified. Various life insurance policies prevailing in United States are:
[[Image:types.jpg|thumb|center|600px|[http://www.metlife.com/individual/insurance/life-insurance/index.html#overview Source: metlife.com]]]
'''Benefits of term life insuranceTerm Life Insurance:'''
[[Image:benefits.jpg|thumb|center|500px|[http://www.genworth.com/content/products/lifeinsurance/term_life_insurance.html source: genworth.com]]]
===Segmentation in Life Insurancethe life insurance industry===Segmentation in Life Insurance the life insurance industry is done on the basis of:
Companies call refer to these segments as 'rating classes'. Different companies give different weights to different diseases and they have their own health check-list while developing these rating classes. All the people in a rating class do would not have the same life span but they have a fairly predictable life expectancy. This gives companies a basis to determine the premiumspremium amount.
==Sensitivity Analysis==
Each of these the health classes stated above has been further categorized on the basis of smoking habits of an individual as follows:.
===Premium charged for “Non-Smokers” in different health classes===
===Premium charged for “Smokers – less than 1 pack a day” in different health classes===
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<br>
===Premium charged for “Smokers – more than 1 pack a day” in different health classes===
* Transamerica charges the least premium in all health classes except for the Standard Plus health class in which Prudential charges the least and in Standard health class in which AIG charges the least for women.
* ING seem to be very risk averse in this category for men as the premium charges for all health classes is among the highest at $413 (except for the Standard Class in which Prudential charges a monthly premium of $414 ).
* For women , different companies charge the highest premium chargers vary as followsfor different health classes:
* In this category too, maximum difference between the premium charged for men is 49% while that for women is as high as 77%.<br>
===Premium charged for “Nicotine patch users” in different health classes===
[[Image:NS combinednew.jpg|center|600px]]
===Average variation of premium for smokers across health classes compared to premium charged for the Health Class===
[[Image:S combinednew2.jpg|center|600px]]
* In AIG, monthly premium for men who smoke more than 1 pack of cigarettes a day remains constant at $413 in all health classes.
* In AIG, monthly premium for women who smoke more than 1 pack of cigarettes a day in the Best health class is $219 which increases by 34% to $294 for all other health classes.<br>
==Points to note==
* It is noteworthy that although the companies charge lesser premium for women than for men, the increase in premium as the health class shifts is higher for women than men. This is an indication that the companies maintain a policy of high risk averseness for women as their health class goes down.
* Companies consider Best and Preferred health class customers in the same segment as the premium charged is same for both these classes.
* Transamerica charges low premium across all categories of health classes. So we can say that they are trying to tap the major chunk of the market by competitive pricing strategy.
* Pruco (Prudential) charges the lowest premium for nicotine patch users. Hence, it may be concluded that the company is aggressively trying to dominate this segment.
* AIG and Genworth charges least premium for Best and Preferred health class individuals falling under non-smoking category while they charge relatively higher premium for all the smoking sub-categories. This shows that these companies are targeting non-smoking category and are risk averse in nature.
==Constraints==
* This study incorporates only five insurance companies because of the constraint of data availability.
* The study is limited only to the state of California; however, we it was observed that the premium charges in other states are were similar to that of those in California. ==<span style="color:#C41E3A">Like this report?</span>==<p align="center"> '''This is only a sample report with brief analysis''' <br>'''Dolcera can provide a comprehensive report customized to your needs'''</p>{|border="2" cellspacing="0" cellpadding="4" align="center" "|style="background:lightgrey" align = "center" colspan = "3"|'''[mailto:info@dolcera.com <span style="color:#0047AB">Buy the customized report from Dolcera</span>]''' |-| align = "center"| [http://www.dolcera.com/website_prod/services/ip-patent-analytics-services Patent Analytics Services]|align = "center"| [http://www.dolcera.com/website_prod/services/business-research-services Market Research Services]|align = "center"| [http://www.dolcera.com/website_prod/tools/patent-dashboard Purchase Patent Dashboard]|-|align = "center"| [http://www.dolcera.com/website_prod/services/ip-patent-analytics-services/patent-search/patent-landscapes Patent Landscape Services]|align = "center"| [http://www.dolcera.com/website_prod/research-processes Dolcera Processes]|align = "center"| [http://www.dolcera.com/website_prod/industries Industry Focus]|-|align = "center"| [http://www.dolcera.com/website_prod/services/ip-patent-analytics-services/patent-search/patent-landscapes Patent Search Services]|align = "center"| [http://www.dolcera.com/website_prod/services/ip-patent-analytics-services/alerts-and-updates Patent Alerting Services]|align = "center"| [http://www.dolcera.com/website_prod/tools Dolcera Tools]|-|}<br>
