Nigerian Journal of Banking and Financial Issues (NJBFI)

RETIREMENT PLANNING AND DEMAND FOR LIFE INSURANCE: EVIDENCE FROM ACADEMIC STAFF OF LAGOS STATE-OWNED TERTIARY INSTITUTIONS Abiodun Rashidat SULAIMON; Samuel Oladipo FAGBEMI

Abstract

This research explores the relationship between retirement planning and the demand for life insurance, particularly among the academic staff of Lagos State-owned tertiary institutions in Nigeria. Life insurance policies can be used to serve many purposes including life protection, wealth protection, investment purposes among others. While every individual actively involved in wealth creation will get to a point where they are unable to go about their daily activity which thereby result in their inability to create wealth as they used to while younger. The population considered in this study encompassed all academic staff of Lagos State-owned tertiary institutions comprising: LASU, LASUED and LASUSTECH, their total number amounted to two thousand hundred and ten (2110). The Taro Yamane formula was used in determining the sample size which giving a total of three hundred and thirty- six (336) respondents. Using questionnaires, it was administered among a sample size of three hundred and thirty-six (336) respondents, 81 percent of the questionnaires were returned. The multistage sampling technique was comprising quota and convenience sampling techniques using a five-point Likert scale at a 95 per cent confidence level. The independent variables tested include: financial planning, lifestyle planning, and health insurance planning while the dependent variables tested were: claims settlement, government regulation, financial ability, risk consciousness, reasonable premium payment. Using the Statistical Package for Social Sciences (SPSS), descriptive and inferential statistics were employed in analyzing the data. It was found that, while 34.5 percent disagreed with the use of life insurance for financial planning, 37.6 percent agreed. For life style planning, only 26.3 percent supported the use of life insurance policy to plan their life styles.  A total of 39.1 percent agreed with the use of life insurance policy to plan for their health. Compared with the predictors, 30.4 percent agreed that prompt claims payment positively influences demand for life insurance while 33.0 percent agreed that government regulations in place also influences the request for life insurance and a total of 40.6 percent agreed to the use of life insurance policy to gain financial stability. The research therefore found that a relationship exist between the independent and independent variables considered in the study.