Bangladesh Bank Training Academy Journal

Abstract

The study covers people’s perception towards purchasing different life insurance policies in Bangladesh. Analysis has been done into two parts; demographic factors (gender, age and income) and people’s perception towards purchasing life insurance policies (either risk management motive or expectation of fixed return). Hence, risk management factors are set into five sub-categories; financial stability, coverage for unexpected loss, risk burden transfer, dependency on life insurance, knowledge about life products. Furthermore, fixed return expectation factors are also developed into five sub-categories; fixed return generated scheme, higher return generating scheme, tax exempted return, premium back when policy lapsed, surrender value equivalent to accumulated total premium. Analysis showed that people consider buying different life insurance policies being influenced by their gender, age and income level. Furthermore, the study revealed that risk management and fixed return expectation factors individually have not much influence over people’s buying life insurance. Conversely, when both factors are put together, the study concluded that people purchase life insurance considering risk management factors above fixed return expectation.