Factors affecting the demand for life insurance in Ghana: evidence from Tarkwa

Abstract

This research sought to identify the factors that affect the demand for life insurance in Ghana. Employed descriptive and the Probit regression model on the primary data collected, the result revealed that people have negative perception and inadequate knowledge on the basic characteristics and concept of life insurance. In terms of the demographic characteristics, age and dependents had a positive and significant effect on life insurance whereas gender, education, marital and employment status were not significant. Regarding the economic and financial factors, homeownership and retirement account had a positive and significant effect while premium had a negative effect on life insurance demand. Psychographic factors such as risk-averse and essence were positive and significant while risk lover and bequest motive were insignificant. The study recommends among others the building of public confidence through rigorous and effective education programs by the industry players