Unravelling the Tapestry: Determinants and Factors of Life Insurance Purchase Intentions in the Indian Context

Abstract

The study aims to construct a comprehensive model for investigating individual-level propensity to purchase life insurance (LI) in the Indian context. It integrates psychological variables (attitude, subjective norms and perceived behavioural control), financial motivators (saving and risk aversion) and socio-demographic variables to assess the mediating influence of financial literacy. This study empirically tests and extends the theory of planned behaviour framework to analyse its impact on LI buying intention (BI), offering a novel approach in the Indian market. The results indicate that attitude, subjective norms, perceived behavioural control, saving motives and risk aversion motives significantly impact buying intention. Financial literacy does not have a significant influence. Demographic variables, such as education, age, family income and spousal education, play a crucial role in shaping buying intentions. This study contributes new theoretical insights, enriches consumer behaviour analysis within emerging economies and provides valuable managerial implications for the life insurance industry.

Keywords: Life Insurance, SEM, Attitude, Subjective Norms, PBC, Saving Motive, Risk Aversion Motive

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