The Intention to Purchase Life Insurance among Working Population in Klang Valley

Abstract

Insurance is a contract represented by a policy between two parties, an insurance company, and the policyholder. Life and general insurance are the two most common insurance offered in the market. Life insurances provide a lump sum in the event of death or permanent disabilities. Meanwhile, general insurance offered protection for non-life coverage, such as medical insurance, home insurance, motor insurance, etc. This study aims to discuss the life insurance purchase intention from the working population that resides in Klang Valley, Malaysia. The researchers conducted an online questionnaire survey and performed quantitative research analysis using Statistical Product and Service Solutions (SPSS) to determine the relationship between independent and dependent variables. This research found that only three independent variables, namely financial literacy, saving motives, and income, significantly correlate with a life insurance purchase. The study also found that the hypotheses of financial satisfaction and product knowledge are unsupported in predicting the purchase intention of life insurance. Nevertheless, the researchers strongly recommend this study to be a reference for government, regulatory bodies, financial institutions, and educators to use in their endeavor to provide financial education for the public and their customers in Malaysia. Besides that, the insurance company shall use this information from this research to tackle half of the survey respondents that do not currently own life insurance.