As regarding the reasons for not buying an LIC policy, the survey points out that people do not buy policies mainly due to lack of funds. Nearly one-fifth of the respondents said that they had not bought a policy as no LIC agent approach them.

Three-fourth of the respondents stated that they save regularly and almost the same number of people cited financial emergency and marriage/education of children as reasons for saving. On the liquidity front, the survey has found that the LIC scores low on rating front(4.90). The central zone is lowest at 2.76 per cent followed by North Central zone at 3.11 per cent.

One-fourth of the respondents stated that their policies lapsed due to non-payment of premium for three years because the agent did not contact. During 1998-99, almost 55 lakh LIC policies lapsed and the policy-holders forfeited around Rs 1,600 crore of premium money as a result.