The Intention to Purchase Life Insurance: A Study based in Kathmandu Valley

Abstract

Although the purchase of life insurance policies is increasing, to the best of our knowledge, only few studies have been conducted regarding the purchase intention towards life insurance policies. Hence, this study intends to assess the factors that affect or influence the consumers’ purchase intention on life insurance policies. Theory of Reasoned Action (TRA) and Expected Utility Theory (EUT) are used in the study. The independent variables under study are income level, risk attitude, income protection, consumers’ insurance knowledge and subjective norms. The purchase intention towards life insurance is taken as the dependent variable. The primary data for the research have been collected through a structured questionnaire survey which was distributed among 384 samples around Kathmandu Valley. A descriptive, causal and correlational research design have been considered for this study. The statistical techniques used for the study include mean, standard deviation, variance, correlation and regression analysis. The findings of the study revealed that income level, risk attitude, income protection, consumers’ insurance knowledge and subjective norms have positive effect on consumers’ intention to purchase life insurance policies.