Abstract :
Life insurance is a tool to cover the financial risk of individuals, and the intention to purchase life insurance was influenced by a variety factors. The purpose of this study is to analyze the factors that influence the intention to purchase Life Insurance using the Theory of Planned Behavior. The data was collected from 250 respondents and analyzed using SMART PLS. In this study, we investigated the relationship between consumers' insurance literacy and life insurance purchase intention with favorable attitude, trustful belief, perceived product benefits and perceived product risk as a mediating variable. The results showed that trustful belief, perceived product benefits and perceived product risk are partially mediating the relationship between consumers' financial literacy and life insurance purchase intention. The stakeholders of the life insurance industry can provide strategies to enhance life insurance literacy among potential customers, which in turn will increase the trust and perceived benefits towards the life insurance products, which will help to improve the performance of the industry and reduce underinsurance globally.
Keyword :
Life Insurance Purchase Intention, Theory of Planned Behaviour, Insurance Literacy