Factors Influencing Life Insurance Consumption In Malaysia

Insurance plays an important role in the risk management of one's life and financial portfolio. The main purpose of this study is to determine the factors influencing life insurance consumption in Malaysia. The relationship between the level of income, level of education, perception of life insurance benefits, medical expense risk and life insurance consumption in Malaysia was analyzed. there are two theories being used in this study which are life-cycle hypothesis (LCH) and consumer perception theory. This study utilized a quantitative research approach. Questionnaire was randomly distributed to 200 current taxpayers in Malaysia from various occupational backgrounds and restricting to Klang Valley area.Data was analyzed using SPSS software. Results showed that It was found that all independent variables (level of income, level of education, perception of life insurance benefits, and medical expense risk) have positive relationship with the dependent variable (life insurance consumption in Malaysia).