Abstract
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
Highlights
Insurance plays a vital role in providing certainty in an uncertain world
Personal values and trust were found to have no significant relationship with the purchase of life insurance
The major finding of this study showed that risk attitude has a significant and negative relationship with the purchase of life insurance
Summary
Insurance plays a vital role in providing certainty in an uncertain world. a rational individual would be willing to pay premium to life insurers in exchange for protection against unexpected financial risks due to unfortunate events such as premature death. Sethu Karuppan, the former president of National Association of Malaysian Life Insurance and Financial Advisors (NAMLIFA), highlighted that life insurance will play an even more important role and become necessary for breadwinners to protect their beneficiaries against any possible adverse effects when the costs of living have increased over time (Money Compass, 2012). Do psychographic factors influence a Malaysian individual’s consideration when purchasing life insurance? According to Global Consumer Insurance Survey 2012 conducted by Ernst and Young, its findings showed that psychographic factors do have an influence on an individual’s consideration in the purchase of life insurance. Malaysians prefer to buy life insurance from insurers or agents whom they trust after having an established long-term relationship and who can provide convenient services for them
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
