Purchase Decision of Life Insurance Policies among Malaysians

Loke, Yiing Jia; Goh, Yi

doi:10.7763/ijssh.2012.v2.137

Cited by 15 publications

(29 citation statements)

References 12 publications

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“…The studies of Baek and DeVaney (2005), Loke and Goh (2012), and Annamalah (2013) showed inconsistent findings. Baek and DeVaney (2005) examined the purchase of term (non-cash value) and cash value life insurance among American households.…”

Section: Risk Attitudesmentioning

confidence: 97%

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A Preliminary Study on the Relationship Between Psychographic Factors and the Purchase of Life Insurance

Tan

Lim

2017

International Journal of Management Studies

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This was a preliminary study conducted to examine the relationship between psychographic factors (i.e., personal value, risk attitude, and trust) and the purchase of life insurance among Alor Setar city folks. A non-probability convenience sampling technique was used to collect data from early February to mid-March 2015. A sample comprising 108 respondents were subjected to binary logistic regression analysis. The major finding of this study showed that risk attitude has a significant and negative relationship with the purchase of life insurance. Respondents in Alor Setar who are more likely to involve in risky behaviours or activities tend not to buy life insurance. Risk taking individuals do not behave like risk averse individuals who tend to seek protection by buying life insurance as a method to cover their personal risks. Meanwhile, personal value and trust were found to have no significant relationship with the purchase of life insurance among respondents in Alor Setar. It is recommended that a comprehensive study covering wider areas with larger sample sizes be included in future studies to obtain more reliable results that would enable the generalisation of findings. Keywords: Life insurance, Psychographic factors, Personal value, Risk attitude, Trust

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Section: Risk Attitudesmentioning

confidence: 97%

“…Meanwhile on a different continent, the study by Loke and Goh (2012) examined the purchase of life insurance among Malaysians residing in Penang. Their findings unexpectedly showed that risk averse individuals are less likely to buy life insurance.…”

Section: Risk Attitudesmentioning

confidence: 99%

A Preliminary Study on the Relationship Between Psychographic Factors and the Purchase of Life Insurance

Tan

Lim

2017

International Journal of Management Studies

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“…Burnett & Palmer 1984;Ferber & Lee 1980;Gutter & Hatcher 2008;Leary, Kane & Woods 2014). Only a little attention has been paid to the examination of the psychographic characteristics of an individual in motivating him/her in owning life insurance in Malaysia (Annamalah 2013;Loke & Goh 2012;Wan Aris, Sahak & Shaadan 2009). Therefore, this study has been undertaken to include the three commonly examined psychographic characteristics together in one study to empirically examine the significance of the personal value, risk-taking attitude and trusting belief of Malaysian individuals on life insurance ownership.…”

Section: G a L L E Y P R O O Fmentioning

confidence: 99%

“…Risk attitude refers to an individual's preference for risky choices (Wärneryd 1996). Expected utility theory with or without life insurance has been used to explain the decisions of individuals with different risk attitudes in purchasing life insurance (Annamalah 2013;Gutter & Hatcher 2008;Loke & Goh 2012;Tan & Lim 2017). The individual who has decided to purchase life insurance is opting for a certain level of utility over an uncertain level of utility.…”

Section: Risk Attitudementioning

confidence: 99%

The Significance of Personal Value, Risk Attitude and Trust on Life Insurance Ownership in the Northern Regions of Malaysia

Chee

Sin

2020

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This paper examines the relationships of life insurance ownership with personal value, risk attitude and trust among the individuals in the northern regions of Malaysia to enable the undertaking of appropriate actions in promoting life insurance ownership by individuals (residing in the northern regions of Malaysia) who have not owned life insurance yet. A structured questionnaire was used to collect data. Stratified random sampling method was used to approach respondents. The data were subject to binary logistic regression analysis. The major finding shows that only trust is found to have a (positive and) significant relationship with life insurance ownership. Thus, this paper proposes that life insurance agents are required to undergo professional trainings in life insurance selling to minimize the incidents of misconducts among agents. This can promote a greater trust among the prospects in agents and increase the likelihood of owning life insurance. In addition, directions for future research are also highlighted.

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“…In addition, life insurance consumption is significantly lower in Islamic nations [34] and Muslim populations [9,29]. However, Loke and Goh [35] (2011) consider ethnicity as the proxy for religion and demonstrate that both Indians and Chinese are inclined to hold life insurance policies compared to Malays. Thus, we expect that the effect of religion on the demand for life insurance varies due to the differences in religious beliefs (In the SHARE questionnaire, there is generalization of questions pertaining to religious participation.…”

Section: Religionmentioning

confidence: 99%

The Effects of Health Status on Life Insurance Holdings in 16 European Countries

Tsendsuren¹,

Li²,

Peng

et al. 2018

Sustainability

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This study examines the relationships among three health status indicators (self-perceived health status, objective health status, and future health risk) and life insurance holdings in 16 European countries. Our results show that households with poor self-perceived health status and high future health risk are less likely to purchase life insurance in the entire sample as well as in the subsample for countries with a national health system (NHS). In non-NHS countries, those households that have high future health risk are less inclined to purchase life insurance. In terms of preferences for types of life insurance policies (term life, whole life, both, or none) in the whole sample, poor self-perceived health status and high future health risk are less inclined to hold only term life insurance policy. In addition, poor self-perceived health status and high future health risk have a negative impact on holdings of both types of life insurance. Our findings reveal that there is no adverse selection problem in the life insurance market, especially in European countries with NHS.

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Purchase Decision of Life Insurance Policies among Malaysians

Cited by 15 publications

References 12 publications

A Preliminary Study on the Relationship Between Psychographic Factors and the Purchase of Life Insurance

A Preliminary Study on the Relationship Between Psychographic Factors and the Purchase of Life Insurance

The Significance of Personal Value, Risk Attitude and Trust on Life Insurance Ownership in the Northern Regions of Malaysia

The Effects of Health Status on Life Insurance Holdings in 16 European Countries

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