EKSU Journal of the Management Scientists

Socio-Economic Determinants of Life Assurance Purchase in Nigeria

Abstract

This study examined the socio-economic determinants of life assurance purchase in Nigeria. It explored the effect of education, occupation, level of income, and price of life insurance policies on purchasing life insurance products. The study employed a survey research design. The study population was the civil servants in the Enugu State Government ministry, while a convenient sampling technique was used to select 240 civil servants who participated in the study. A suitable sampling technique was used to collect data from the selected respondents (civil servants) from the Enugu State Government Ministries (ESGMs). Linear regression analysis was employed to validate the research hypothesis at a 0.05 significant level. The statistical result showed that education and occupation have 39% and 40.5% respective influence on the purchase of life assurance products in Nigeria. The analysis also revealed that income level and premium (price) have 39.9% and 55.6% influence on the purchase of life assurance products respectively. The most important finding of this study was that socio-economic variables such as education, occupation, income level and the prices (premium) of life assurance policies are significant determinants of life assurance products purchase in Nigeria. Therefore, it was recommended that the regulatory bodies and stakeholders should consider introducing insurance education in schools, radio and televisions stations where the significance and mechanisms of life assurance can be discussed. That life assurance sellers should focus on creating special products for people whose jobs present greater than average risks. It was equally recommended that occupation, income and prices of life assurance products should be factors in product design and sales since they are all significant determinants of life assurance purchase. The study contributes to knowledge by establishing a significant relationship between education, occupation, income and price (premium) with the purchase of life assurance policies