This paper investigates the demographic and
socio-economic influential factors that work as a motivational tool for
purchasing life insurance policies by the eligible consumers of Bangladesh.
Using convenience sampling technique, responses of three hundred seventy-eight
persons have been analyzed using this study's binary logistic regression model.
This study found that demographic variables like age, education, and gender
have no significant impact on life insurance policy buying decisions. On the
contrary, the number of dependents in a family, nature of work, and monthly
income positively impact the policy purchase decision. This study also reveals
that insurance literacy has a positive influence, but acquired information
about insurance policy negatively impacts consumers' purchasing decisions. In
addition to that, the study's findings also show that people usually purchase a
life insurance policy for tax benefit purposes instead of investment purposes.
The outcomes of the study will be helpful to the insurers and policymakers to
find out the major areas of improvement to bring more people under life
insurance coverage, and for prospective consumers, it will guide them to
understand the benefits of having a life insurance policy.
JEL classification numbers: C83,
C93, H55, I13.
insurance, Logistic model, Forecasting, Tax benefits, Agent.