Factors Influencing Investors’ Preference Towards Life Insurance Products: With Reference to Term Insurance Plans

Abstract

This study examines the factors influencing investors’ preference toward life insurance products, with specific reference to term insurance plans. Despite being a cost-effective pure protection product, term insurance continues to witness low preference compared to savings-linked policies, leading to a protection gap. The study adopts a quantitative research design using primary data collected through a structured questionnaire from 203 respondents. Descriptive statistics and regression analysis were applied using SPSS to assess the influence of demographic, economic, marketing, service-related factors, product attributes, financial literacy, and digital awareness. The findings reveal that marketing activities and service quality have relatively higher influence on investor preference, while product attributes, financial literacy, and behavioral factors show weak and statistically insignificant impact.The study concludes that low awareness and limited understanding of term insurance restrict informed decision-making, highlighting the need for improved financial education and targeted marketing strategies to enhance term insurance adoption.