Perception of Uninsured Person Towards the Life Insurance Policy

Abstract

The study aims to explore the reason behind of unwillingness of purchasing life insurance policies. It also examines the differences on opinion of respondents and their level of education, income, expenditure, and fixed asset. A structured dichotomous questionnaire was used to obtain the perception of 300 uninsured respondents using purposive sampling method. Mode and Mann Whitney U test have been used to find the perception and difference on perception of respondents respectively. The study concluded that both financial and non-financial reasons affected the respondents. These are reasons likely to be the dependency over the relatives in the time of hardship, low bonus rate of life insurance, and sufficient property they have. Similarly, mistrusting psychology over life insurance, perceiving the low quality services of company, lack of convincing capacity of agents, and complex claims settlement process are seemed to be the non-financial causes. Inferential statistic show that level of education and expenditure do not make difference on perception of respondents but assets and income have shown the greater influence the perception of uninsured significantly. It has been suggested to concerned authority to increase the social faith over insurance by different means like awareness campaign, introducing the investment linked type product, improving the service quality and increasing the financial performance of the companies. Government should offer financial incentives to increase the demand of insurance product.