Insurance Literacy and Financial Security: Understanding the Role of Consumer Knowledge in Purchase Decisions

Abstract

This research examines how consumer knowledge affects decisions towards insurance purchases and provides a relationship between
literacy and financial security. By focusing on the effect of financial literacy on insurance buying behavior, this study investigates crucial
elements such as consumer awareness, trust, and the decision-making process. A mixed-methods strategy, which integrates both
qualitative and quantitative research, is utilized to offer a thorough understanding of the topic. The study targets adults aged 18 and older,
sampling 500 participants through stratified random sampling to ensure demographic diversity. Data is gathered using structured
questionnaires that concentrate on consumer knowledge about insurance products, levels of financial literacy, and perceptions of
financial security. Secondary data from existing research supplements the primary collection to create a theoretical framework. The
objective of the study is to provide valuable insights that will enhance consumer education and decision-making in the life insurance
sector. The expected findings will offer recommendations for insurers to improve their product offerings and better address consumer
requirements. Limitations of the study include its focus on consumers already knowledgeable about insurance and the possibility of self
report biases.