Abstract
The current study has motivated for assaying whether life insurance (LI) enrolment should be taken as a protection tool or a saving instrument. Reviewing literature hypotheses have been farmed and tested by gathering primary data through a survey from 120 sample respondents chosen by applying stratified random sampling. It has applied a cross-sectional study design and significant results have validated selective demographics, risks, returns, tax incentives, and precautionary motives likely have influenced LI enrolments. Interestingly, instead of protection tools, LI plans have been preferred as saving instrument. Existing insured customers may use the report for revisiting their risk appetites and quantum of sum assured to assess whether they have been under-insured and if so, they could chalk out plans for taking purely term plans rather than traditional plans and unit link insurance plans to replenish the deficiency.
Introduction
“Risk-defined equity,” a scientific principle, has been identified as the basis for life insurance (hereafter, LI) companies which have assured the premiums paid by insured have been adequate to cover the risk introduced to the insurer 1 inasmuch individuals have been risk-averse. 2 The term “equity” has been implied the system of LI coverage is fair and has been applying unbiased actuarial rules whereas “risk” has been categorized based on the customs, social acceptability, and principles. The expected utility theory has posited that under the ambit of risk and uncertainty, alternatives have been explored by the rational decision-maker for maximizing her expected utility 3 and risk aversion has been identified as the primary model in the backdrop of risk and insurance demand literature. 4 The human life value concept has provided the philosophical basis for the LI demand which has been stemmed from the consumption theories 5 for hedging the loss of income in case the breadwinners expired.6,7 LI demand has also been found positively correlated with the income levels and negatively with the inflation rates. 8 Positive impacts of multiple factors on the LI demand, for example, the banking sector development, financial development, legal and political environment such as creditors’ rights, population size, birth rate and changes in the same, higher life expectancy social security and tax incentives, racial differences, dependency ratio and cultural affinity, a higher degree of urbanization have been studied in delve. 9 Per contra, negative impacts such as the higher government spending on social security and lack of consumer confidence have also been indicated.8,10
Literature has shown that access to the formal financial services likely to enhance the households’ ability to deal with risks by accumulating wealth and accelerating their incomes.
11
It has been concurred that the decision theory has developed rapidly in the fields of marketing, more specifically in studying the concept of individual decision-making such as the LI enrolment decisions in achieving a goal.
12
The decision theories have been classified into three categories, namely
The Normative Decision Theory which has stipulated that decisions made for accessing the maximum utility; The Behavioural Decision Theory examines ant rational decision-making process to access decisions made to get maximum satisfaction The Naturalistic Decision Theory has explained the decision made on the basis of natural resource settings and models.
Individuals or households’ demands for the LI have been channelized by twin reasons-such as risk management and or motives for saving mobilization. 13 Moreover, household saving studies have also been classified in three ways-the nature of data applied, definition of savings, and applied methodologies. 14 The nature of data has been sub-classified as macro and micro; while few studies have applied cross-sectional data and few panels. 15 Savings have been defined as the residual of income over consumption 16 or accumulated wealth. 17 The applied methodologies have been using penal analysis 18 and behaviours of cohorts. 19 Literature has extensively documented household saving motives, for example, retirement corpus, girl child’s marriage and education, supporting children for buying homes, tax incentives, and even precautionary motives. 20 As far as the LI enrolment has been concerned, it is being a rational economic decision executed mostly under the ambit of risk and uncertainty. 21 Again, demand for the LI has also been influenced by the nature of a country’s society and its cultural background. 22 Early death and income uncertainty have significant impacts on the skewed wealth accumulations which, in turn, have largely motivated the households for enrolling in the LI schemes. A bulk of studies encompassing boosting LI enrolments, for example, LI demand, home owners’ preference as such LI policy document as a collateral, risk aversion, bequest motives, product-market characteristics, bequest and old-age provision motives, and tax benefits have been reported. Moreover, the increased household savings likely have adverse impacts on the LI demand inasmuch these savings act as shield during the emergency 23 ; notwithstanding it has been contested inasmuch the accumulation of household wealth likely to create additional demand for the LI. 24 Interestingly, enrolment impediments such as the hidden and implicit costs in different LI schemes, psychological cost of imagining death, prospective buyers’ heterogeneous health conditions and other adverse demand factors have also been reported. 25 Furthermore, literature has also reported that government’s social security measures have adverse impacts on the LI demands. 13
Indian LI literature has been wide-spreading addressing multiple facets, for example, macroeconomic issues like role of the LI reforms, role of LI in the economic development, impact of liberalization on the LI market, costs efficiency of the LI schemes, solvency test of the LI market, disinvestment impacts on the LI sector, risk management techniques of the LI industry, long term relationship between the LI industry and economic development, causes and remedies of policy lapses, service quality perception indicators, and the LI sector performance analysis have been documented.26–35 Moreover, studies on customer-related aspects such as the buying behaviour about LI, motivators of the LI demand, attitudes towards the LI companies, role of post office saving bank accounts in spreading the LI, dispute settlement mechanisms, understanding rural customers’ behaviours and customer satisfaction, preferences and satisfaction levels in changing environment and assaying the Life Insurance of India (LICI)’s success in countering private players’ exaggerated advertisements, status, and role of microinsurance have been attempted.36–44 Furthermore, financial illiteracy to lack of trust in insurance products causing India’s poor demand for LI have also been identified notwithstanding Indian LI market is considered as the world’s most dynamic and innovative microinsurance market.45–47 A careful review has indicated studies on the Indian LI sector have been conducted in last two decades focusing on macro and micro perspectives but literature likely remained scant in answering the research question of whether LI schemes have been perceived as a saving avenue or as a protection tool. The current study probably the first one at least in the Indian context which has motivated to trace the answer of the stated research question based on the empirical evidence which, in turn, would close the identified deficiency in literature.
Contribution in the literature of the research is varied. First, it has produced a comprehensive report in the Indian context whether the traditional LI plans have been treated as a protection tool or merely as a saving avenue. Moreover, for precautionary objectives, LI schemes have been preferred rather highly liquid funds such as savings bank accounts, contrasting literature.48–49 Second, in tune with the literature selective demographics such as gender, 37 education levels, 50 income levels, 13 and marital status have influenced the LI enrolment decisions but have contrasted as well. It has differed from literature which has concurred that women savers have higher tendencies for post-retirement saving, about negative influences of marital status51,52 and even incomes on the LI demands. It could not find any evidence of higher LI enrolment of women, opposing literature. 53 Moreover, it could not trace any evidence of higher LI enrolment by salaried people vis-à-vis self-employed or businessmen, opposing literature. 39 Third, it has correlated with the literature as far as influences of risk and returns on savings and LI enrolment have been concerned, notwithstanding opposite results have also been concurred. The risk-taking propensity of the young has been validated as a good number of respondents have been saving in the MFs and ULIPs in contrast with older who have preferred government-edged safer instruments, correlated with the literature. Finally, notwithstanding the personal income tax (PIT) has significant influence on the household saving decisions in general but, probably has insignificant influence on the LI enrolments, opposing literature. 54 Again, in corollary with the literature it has not found any evidence of a negative effect of inflation on the LI demand 55 as well.
Insurance literature has concurred that LI has been referred to as an instrument for mitigating the offspring’s financial risk. Risk aversion has been referred to as one of the prime inducing factors for LI demand and higher the degree of such risk aversion, more the tendency of LI enrolment. 56 In the changing global environment with enhanced consumerism, increasing income, and education levels, the present study is a timely attempt for assessing whether the LI demands have been motivated by saving or to provide security against various risks. Households having multiple demographic characteristics likely to select varied saving instruments and their LI enrolment decisions unlikely are exclusively influenced by savings motive rather protection motive. Accordingly, the current research has motivated to assess whether the LI enrolment should be taken as a protection tool or a saving instrument.
Subsequent sections of the study have been designed as related literature and hypotheses, methodology, results, discussion, and conclusion respectively.
Related Literature and Hypotheses
Demographics and Savings
Gender
The gender differences such as skewed towards men in financial behaviours such as savings have been concurred 57 while few scholars contradicted and criticized their peers about applied poor methodologies. Again, women savers due to higher longevity have been saving for post-retirement in relatively safer instruments. The determinants of the LI demand have significantly varied by gender 37 and even skewed towards the men especially in the developing economies. 58
Age
Positive associations among age and savings have been reported in literature,59,60 the older aged population has higher preference to save in safer avenues. 61 On the other hand, young dependency has been inversely related to the LI demands. 61
Marital Status
Marital status has been positively related to retirement savings. Further, marital status and existence of dependent members of family have positive influence on the LI enrolment. 51 Interestingly, studies have reported unemployed married women to have lesser LI demand vis-à-vis employed married women. 53
Education Levels
The positive influence of education on household savings in general and on LI, in particular, has been validated in literature.13,55,62 Interestingly, few scholars have indicated negative influence of education on the LI demand as well. 63
Income Levels
Literature has documented positive and negative influence of income on household savings. 64 Further, positive impacts of incomes on the LI demand8,61,65 have also been reported.
Risks
Varying risk facets, for example, risk diversification, and risk tolerances have significant influence on the saving decisions. 66 Moreover, highly skewed financial behaviour of the households during the financial crisis has also been documented. 67 The ongoing debate about customers’ preference for the whole LI plans or purely term plans have also been conceded in the literature where the former has been usually sold as a combination of savings and risk (of death) insurance and accordingly tying these two elements for dominating a saving strategy.68–70
Returns
Multiple return parameters of savings such as interest compounding; numeracy, inflation impacts, and time value of money have been assessed by the savers. Further, transaction costs in selecting the different saving instruments have also been acknowledged. Interestingly, literature has conceded that inflation has a dampening effect on the amount of insurance and has eroded the value of the LI, making it a less desirable good8,71 while few have even differed significantly. 22
Personal Income Tax
Taxation issues such as tax rate uncertainty, unpredictable tax rate changes, and policy reforms have significantly shaped the household saving decisions both in terms of quantity and frequency. 72 Furthermore, specific aspects of tax incentives on saving decisions such as on interest incomes, on Sukanya Samriddhi Yojana in India, on salary income, on house property incomes, and on payment of LI premiums have been documented.20,73
Precautionary Motives
Research has shown lack of precautionary funds puts households temporarily in deep financial crisis coupled with high debt traps, in temporary poverty, and to prevent that unpredictable scenario, households have been creating emergency funds mostly in liquid assets capable to support three to six months household expenditures. 49 Again, factors such as income uncertainty, age, marital status, education, and financial literacy have positive impacts on savings. As far as the LI as a protection tool during financial vulnerability has been concerned, it has shown significant positive associations. 74
The relevant theoretical underpinning has been studied in delve and accordingly the following hypotheses have been categorically framed for executing the study.
H1: Demographics have significant influence on household savings and LI demands.
H2: Risks have significant influence on household savings and LI demands.
H3: Returns have significant influence on household savings and LI demands.
H4: PITs have significant influence on household savings and LI demands.
H5: Precautionary motives significantly influence household savings and LI demands.
Moreover, it has conceptualized a model as exhibited in Figure 1.
Methodology
Research Design
A cross-sectional study design has been followed and survey has been carried out at a particular point of time (during January–May 2018).
Methods
Schedule Development
Scholars have concluded respondents by and large have been showing their reluctance in answering questions related to their personal finance hence personal interviews may be an effective tool to address the problem. It has developed an interview schedule in the stated manner. Initially applying pertinent keywords 211 papers have been downloaded from the E-Soudhsindhu subscribed journals and through rigorous review a 46-items inventory schedule has been prepared which has been pre-tested for confirming its reliability and based on Cronbach alpha scores of .5 and above 75 5 items have been dropped.
Sampling Technique
The LI buyers of Dharmanagar, a town of North Tripura district, and Agartala, the capital of a north-eastern Indian state of Tripura, have assumed as study population which has further split into three strata representing the service holders, businessmen, and self-employed. The choice for inclusion of self-employed and salaried class has also been in prior studies, for example, in Korea. 76 Adopting stratified random sampling technique 120 respondents with equal representations from each of the three stratums have been chosen randomly. The sample number has finalized strictly as per the guidelines of the scholars who have indicated a standard size in between 30 and 500. 77
Data Collection Design
Primary data: The schedule having three sections has been used for data collection. To gather demographic and savings-related basic information, the first section has set 12 questions, 18 questions have been designed in nominal scale about LI in the second section and finally, the third section has contained 23 items designed in 5-point Likert scale addressing saving and LI issues. Instructions to fill up the schedule have been indicated in a cover letter and items have been translated by the numerator in vernacular language whenever requested for minimizing the non-comprehension risks.
Secondary data: The primary sources of the secondary data have included original research papers published in academic and professional journals, the secondary sources included review papers, books, theses, and the tertiary sources have included papers accessed from Web of Science, Google Scholar, and Research Gate.
Data Analysis Strategy
It has applied IBM-Statistical Package for Social Science (SPSS)-20.
Variables
The variables of the study have been categorized in three ways. Five predictors as indicated in Table 1 likely have significant influence on the outcome. Moreover, for simplicity and to arrest the impact of extraneous variable, the personal interviews have been carried out severally and in different time scales.
Study Variables
Significance Level
The significance level (α) set at 5% which has implied the study has 95% confidence level in its findings.
Results
Descriptive Statistics
Based on scaling, it has reported the relevant sample statistics such as mode (for Nominal scale). It has documented majority of the participants are men (81.70%), oscillated in the age group of 35–44 years (45.80%), married (74.17%), graduates (40.83%), general in caste (31.70%), having monthly incomes ₹.03–.05 million (54.20%), have been saving per month in tune of ₹.02–.03 million (44.17%), saving in different LI plans (60%), largely banking on traditional LI plans (51.66%), tax benefits for saving not been prioritized (64.20%) and to earn satisficing return from saving have their motives (95.80%). Tabulations and the summary results have been summarized in Table 2.
Summarized Descriptive Statistics
As far as respondents’ perceptions about LI has concerned, it has reported all the 18 questions (in nominal scale) which have been answered affirmatively (based on model). Amongst these, they have perceived mostly about the 12th question that is, “many times people fall in discounting trap while buying LI” (92.5%) while for the 2nd question “insurance in India is widely viewed as a tax-saving instrument” the highest negative responses (40%) have been recorded. Remaining questions have been replied to affirmatively in the range of 65% and 88.33%.
Inferential Statistics
Cross Tabulations
For testing the H1 Cross Tabulations have been applied which have produced the following results as reported in Table 3.
Tabulations and the summary results have been summarized in Table 3.
Summary Results of Cross Tabulations
Pearson’s chi-square values have been exhibited in the 1st column indicating the test result of the null hypothesis that row and column variables probably be independent. Interestingly, banking upon the 4th column the null hypothesis likely be rejected being lower significant value (p < .05). The “likelihood ratio” as reported in the 2nd column has been explained in the same manner like Pearson’s chi-square values and it has been applied to verify the results since it has relatively less effect even with a smaller sample size, as scholars have indicated. 78 For assessing whether ordinal type data having equal and ordered intervals, Linear-by-Linear Association test has been conducted as reported in the 3rd column. Moreover, the Pearson correlation coefficient has been relied upon as an approximation of chi-squared distribution at 1 df which has indicated significant values for all (p < .05). The overall Cross tabulation results have provided significant evidence for likely to reject H1 and it has concluded that demographics have significantly influenced the LI demand, in line with prior studies 60 but has been differed from few studies. 79
Pearson’s Correlation Analysis
For testing H2 and H3, it has applied Pearson’s correlation technique and the results have been presented in Table 4.
From Table 4, it has pointed out a strong positive association between saving and risks (r = .711, n = 120, p = .010) and that of with returns (r = .736, n = 120, p = .009). The results have documented concurrent validities that is, savings have been significantly influenced by both risks and returns80,81 in general and for the LI demand specifically.68,71 Moreover, as far as LI demands have been concerned, the significant positive impacts of risks21,82 and returns 83 on the LI demands have been correlated with the literature.
Correlations Between Risks, Returns, and Savings
Multiple Regressions
To assess the impacts of PIT and precautionary motives on saving in general and LI in particular Multiple Regressions have been run.
From Table 5, PIT in Model 1 and precautionary motives in Model 2 have been applied as predictors to predict their impacts on the outcome. The simple correlation among the predictor and outcome has been calculated in the column R as .571. R2 column has indicated 48.8% of the outcome probably has been represented by the predictor as the R2 value has been computed as .488. In Model 2, R2 value has raised to .811 that is, the addition of precautionary motives has contributed around 32.4 (.812–.488)% in the variation in the outcome. The adjusted R2 columns in both the models have represented values close to the R2 scores affirming both the models likely have been derived from the study population. In the change statistics, the significance of R2 changes have been tested applying an F-ratio which has increased to 98.12 (Model 1) since R2 has risen from 0 to .352, significant (p < .05). The inclusion of precautionary motives (Model 2) has caused R2 to enhance by .346. Moreover, such increase has been explained by F-ratio of 96.80, found to be significant (p < .05). Eventually, the Durbin-Watson test has scored 1.95 that is, approximately 2, has affirmed the assumption of independent error.
Model Summary
Analysis of variance (ANOVA) results as reported in Table 6 has shown an improvement in the model fitness by significant F-ratios which have registered an increase from 91.3 to 99.84, likely has supported to reject the H4 and H5 respectively. Such probable rejections have validated that PIT and precautionary motives have positively shaped the saving decisions in general and LI demand in particular. Interestingly, LI plans have been preferred for precautionary motive opposed to literature which has referred liquid funds such as saving bank accounts. 84 On the other hand, scholarship has conceded liquidity constraint has significant impact on the micro LI enrolments in the developing economies. 85
ANOVA Results
Discussion
Descriptive statistics have reported few surprising facts as indicated by the participants. It has indicated most of them are men 57 while middle-aged participants have higher saving tendency vis-à-vis youths 60 confirming literature. As far as marital status has been concerned, positive association with LI demand has been reported, and probably their saving decisions have been channelized by their responsibilities towards dependents hence preferably have been banking on relatively low return government-edged saving tools such as GPF/NPS, bank FDs and even LI schemes in conformity with literature. 51 Such conservative attitude has further being supported when they have asked in which category of LI schemes they have mostly saved they have preferred traditional plans rather ULIPs. Surprisingly, few of them having girl child have been preferring different child plans of LI rather than Sukanya Samriddhi Yojana, without explaining any satisfactory rationale even, in contradiction by and large the respondents have indicated they have been saving with an objective to earn satisficing returns, in priority to any tax incentives. As far as the association between education levels and LI enrolment has been concerned, the result has shown graduates have higher tendency to enrol in the LI schemes in tune with the literature. 55 Interestingly, the results have differed from the literature which has indicated that higher incomes have more LI demands 8 as the current study could not find any such precedence. Further, LI demands have been found more among the study population that is, the professionals (service holders), self-employed, and businessmen, in corollary with literature. 86 As far as impacts of incomes on the LI demand has been concerned, it has found significant positive impact, in tune with the literature which has concurred that higher education likely tends to higher incomes which, in turn, create higher LI demand. 87 Apart from selective demographics, the study has proxied risk and returns as determinants of savings in general and LI in particular and significant results have affirmed that both risks and returns have channelized respondents’ LI enrolment decisions, in tune with LI literature.21,83 Furthermore, the study has considered PIT and precautionary motives as influencing factors on savings and LI decisions and significant Multiple Regression results have shown both have influenced LI enrolments. Interestingly, LI schemes have been preferred by a few respondents over other liquid products as precautionary saving avenue in corollary with literature which has shown its use especially during financial vulnerability. 74
During personal interviews majority of the respondents have shared in LI schemes they have enrolled presuming these as saving tools rather than protection tools since those have been fetching satisficing returns with an edge of tax incentives under Section 80C of the Indian Income Tax Act, 1961. Moreover, for precautionary objectives, respondents have been treating LI schemes as safer instruments rather than perking in highly liquid funds such as savings bank accounts. Many of them have unequivocally shared they were misguided by the agents and have erroneously perked excessively in different traditional LI schemes instead of term plans resulting in minimal returns in single digits notwithstanding their objectives were to earn satisficing returns, in contrast with the objectives of LI schemes. The enumerator whenever asked about their preference between returns and risk coverage the replies were surprising inasmuch they were convinced by the agents about assured returns, without highlighting the relatively lower sum assured. Interestingly, a few young respondents have confidently argued they have taken term plans rather than traditional plans or ULIPs as far as their perceptions about LI have concerned. They have been treating LI simply as a protection and highlighted their understanding about the different tag lines of the insurers which, according to them themselves are self-explanatory, citing LICI’s tag line which has implied “LI is with you and even after you” (zindigi ke saath bhi, zindigi ke baad bhi). A large number of respondents have explicitly complained regarding exorbitant 18% goods and services tax (GST) leviable on term plan premiums which probably have de-motivated the prospective customers and have enrolled under Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) by paying cheaper annual premiums. Further, they have outspoken about attached income tax benefits while paying premiums under Section 80C as well as maturity benefits under Section 10(10); they have indicated an array of saving instruments have been qualifying for exempt-exempt-exempt (EEE) category such as PPF, GPF, and SSY while a few fall under exempt-exempt-taxable (EET) category, for example, NSC hence they have found no rationale for saving in LI schemes to avail the tax benefits.
Conclusion
The present study has attempted to assay the research question of whether people enrol in the LI plans for protecting their economic lives or merely as a saving avenue. For executing the study, it has adopted a cross-sectional research design and applying survey strategy primary data has been gathered from two towns of Tripura which the has painted significant results. It has indicated selective variables have significantly influenced LI enrolment decisions but the respondents probably have been preferring LI schemes as a saving avenue for yielding satisficing returns, to enjoy attached tax incentives, and even as an emergency fund since the schemes have pre-mature surrender facilities. Such traditional mindset has raised a serious question about the objectives of LI schemes that is, whether these are saving instruments or a protection tool and the current study has indicated that LI has probably been preferred as a saving tool rather as a protection mechanism.
Academic audience should ponder a few limitations of the current research. At first, literature published in English has exclusively been considered; has specified variables and hypotheses. Further, the study has conducted in relatively small areas within a stipulated timeline with smaller sample size due to parsimony. Second, due to parsimony and time constraint, it has preferred selective hypotheses and variables; instead of adoption or adaptation has set relevant items and has applied a 5-point Likert scale having an option of neutral which could have been suffered from the problem of central tendency. Third, the “exact moment effect” or “telescoping” biasness probably has persisted as respondents during the survey might not have behaved like real-life situations. Moreover, the possibility of social-desirability bias—a tendency of the participants to respond in tune with the enumerator has unlikely to be ruled out. Fourth, the threats to content and concurrent validities have unlikely been refuted entirely as well. Finally, the inferential statistical tools have inherent snags which likely to have at least marginal impacts on the study outcomes.
It has several practical implications for stakeholders. First, the existing LI customers may use the report for revisiting their risk appetites and quantum of sum assured to assess whether they are under-insured and if so they may chalk out plans for taking purely term plans rather than traditional plans and ULIPs to replenish the deficiency. Second, the customers of child plans, especially parents of girl child in the light of the report likely to be enriched and may redesign their saving portfolios by including SSY and/or PPF which would provide satisficing returns with EEE tax incentives. Furthermore, they could consider incorporating term plans for their children for protecting the earning lives of the children significantly. Third, the prospective buyers should carefully assess the report and could set their portfolios by incorporating term plans and depositing the balance in other profitable tools rather than exclusively depositing in the traditional LI plans. Fourth, it has documented for satisficing returns and for accessing tax deduction LI plans likely not the wise saving tool since array of purely saving tools eligible under Section 80C may be used for these twin purposes. Fifth, the insurance companies may use the report for revising their advertising strategies with more focus on term plans or may launch in more numbers hybrid products that could offer dual benefits, that is, purely protection and saving opportunities. Sixth, inasmuch household’s real LI decisions significantly differ from the rational behaviours rather factorized the LI demand anomalies such as the emotions,88,89 they may likely to use the report while making their LI enrolment decisions by striking a balance between these two extremes. Seventh, the significant association between the demand for LI and the income levels has indicated that the LI sector may reasonably develop in India, and accordingly, the insurance companies may design low-income based products to attract the new customers in the ambit of LI orchestra. Eighth, as family has significant motivating role in household LI demand, marketers could concentrate on family and friends as the initial point of contact for information on LI along with applying the word-of-mouth strategy in promoting the LI demand. Finally, the policymakers may use the report for revising the GST leviable on the term plans and ULIPs which could reduce the rate to 12% for attracting more uninsured or under-insured population under the ambit of LI coverage.
Future research may be conducted in several areas such as; first, the excluded variables, namely family size, financial literacy, financial advice, occupational status, governments’ social security coverage, and inflation impacts on the LI demand 71 may be tested in the Indian context. Second, the impacts of macro factors—for example, deregulations, cost efficiencies, and trade liberalization—and micro factors—customer satisfaction and service quality and service quality of agents on the LI demand—may be endeavoured. Third, LI variants and dimensions, for instance, whole LI and bonus may be verified in the Indian context. Fourth, comparative studies of determinants of demand for LI in India and that of SAARC countries may be a future research agenda. Fifth, the influence of religious beliefs90 and emotions 88 on the LI demand may be investigated in the Indian context. Finally, whether the employer-sponsored group insurance has any influence in the demand of self-motivated enrolment in LI could be assessed by intra-state and inter-state studies.
Footnotes
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The authors received no financial support for the research, authorship, and/or publication of this article.