Factors Influencing Purchase Intention of Life Insurance among Engineering Students

Abstract

This paper discusses the factors that will influence the purchase intention of life insurance. The main objective of this research is to identify the influence of product knowledge, risk aversion and social influences on the intention to purchase life insurance among engineering students. With the increase in death toll and life-threatening disease in Malaysia, the importance of life insurance is turning into a necessity for protection purpose. Past researches revealed that students in a non- finance course, such as engineering course, tend to have low insurance awareness compared to those taking finance courses. This research employed a survey questionnaire for a total of 183 engineering students in a public university in Malaysia. Using multiple linear regression analysis, the findings revealed that social influences and risk aversion significantly influence the intention to purchase life insurance among engineering students. However, product knowledge does not influence life insurance purchase intention. The findings from this research will assist Malaysian life insurance agencies in developing an effective way to communicate with engineering students as an effort to promote good awareness and knowledge on life insurance.