Changes
==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>
:* 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''
'''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 Policy===
* 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 is divided into Temporary Life Insurance and Permanent 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]]]
* 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>
==Key FindingsPoints to note==
* The first level of segmentation in Life Insurance industry is on the basis of Age and Gender. Then they are further segmented on the basis of their health class and thereafter on the basis of their smoking habits.
