An analysis on the factors leading to take life insurance

Abstract

This dissertation sets out to investigate the motives that encourage Maltese people to take up a life insurance and whether the people who have taken up a life insurance have done so because it is a bank requirement for loans. The study makes use of an extensive literature review about the main international trends in the life insurance sector and looks at the variables which lead to the take up of life insurance policies. Data was collected from 400 respondents, sing the social media platform Facebook, who answered questions relating to various demographic information and also questions relating to different aspects of life insurance. Graphs were created automatically by Google Forms to clarify the primary data collected quantitatively through an online questionnaire. Data were analysed and discussed, and later compared and contrasted with the literature review. A conclusion was drawn and recommendations were made. Results showed that the presence of dependents and the issue of savings triggered Maltese people to take up a life insurance policy, and that the premium price was the primary factor which influenced decisions about life insurance mostly.