Factors affecting customers’ life insurance purchasing decision in hanoi

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL FACTORS AFFECTING CUSTOMERS’ LIFE INSURANCE PURCHASING DECISION IN HANOI Bachelor of Business Administration in English (E-BBA) Thesis Student: Tran Phuong Linh Class: E-BBA 7B Supervisor: Assoc Prof Dr Le Thi Bich Ngoc HANOI, 2019 ACKNOWLEDMENTS First of all, I would like to show my sincere gratefulness to my supervisor, Assoc Prof Dr Le Thi Bich Ngoc for her helpful guidance throughout the process Without her careful and detailed suggestions, this thesis would not have been completely accomplished Secondly, I want to honor all lecturers and staff at Business School for eagerly supporting me during the past four years In addition, I gratefully acknowledge E-BBA program for providing me with high-quality learning condition where I can not only acquire useful knowledge but also hone my intellectual and social skills Also, I dedicate my thanks and appreciation to the board of directors and all the employees at BIC’s Company, where I took a three-month internship, for supporting me with my study and providing all the data needed to complete the thesis All in all, to my beloved family and friends, it is my pleasure to receive your assistance, encouragement, trust and timely support Thank you TABLE OF CONTENTS ACKNOWLEDMENTS ABBREVIATIONS LIST OF TABLES LISTS OF FIGURES EXECUTIVE SUMMARY 10 CHAPTER 1: INTRODUCTION 12 1.1 Rationale 12 1.2 Research Objectives 13 1.3 Research Questions 13 1.4 Research Methodology 14 1.4.1 Research Process 14 1.4.2 Data Collection 15 1.4.3 Data Analysis 15 1.5 Research Scope 15 1.6 Research Structure 15 CHAPTER 2: THEORETICAL BACKGROUND OF FACTORS AFFECTING LIFE INSURANCE PURCHASING DECISION 17 2.1 Introduction to Life Insurance 17 2.1.1 Definitions of Life Insurance 17 2.1.2 Types of Life Insurance 18 2.1.2.1 Term Insurance 18 2.1.2.2 Permanent Life Insurance 18 a, Whole Life Insurance 19 b, Universal Life Coverage 20 c, Endowment Insurance 20 2.1.2.3 Variable Life Insurance 21 2.1.2.4 Variable Universal Life Insurance 21 2.1.2.5 Accidental Death 21 2.2 Definition of Purchasing Decision 22 2.2.1 Purchasing Decision Process 22 2.2.2 Factors affecting Consumer Behavior 22 2.3 Literature Review of Factors Affecting Customers’ Decision to Buy Life Insurance 23 2.4 Research Model 25 2.4.1 Customers’ Motives to Buy Life Insurance 27 2.4.2 Customers’ Experience of Purchasing Insurance 28 2.4.3 Events in Life 28 2.4.4 Barriers When Purchasing Life Insurance 28 2.4.5 Reputation of the Insurance Company 30 2.2.6 Opinions of Family Members and Friends 30 2.2.7 Distribution Channels 30 2.2.8 Demographic Factors’ Influence on Life Insurance Purchasing Decision 31 2.2.8.1 Income 31 2.2.8.2 Age 31 2.2.8.3 Gender 32 CHAPTER 3: AN OVERVIEW OF THE LIFE INSURANCE MARKET IN VIETNAM 33 3.1 The Development of Life Insurance Industry 33 3.1.1 The Life Insurance Industry and the Demands for Life Insurance in Vietnam 33 3.1.2 Competitors in the Life Insurance Market 35 3.1.3 Life Insurance Products in Vietnam 37 3.2 The Potential of Life Insurance Industry in Vietnam 38 CHAPTER – RESEARCH METHODOLOGY AND FINDINGS 42 4.1 Research Methodology 42 4.1.1 Research Information 42 4.1.2 Creating Data Measurement Scales 44 4.1.3 Data Processing Methods 46 4.2 Research Findings 46 4.2.1 Sample Information 46 4.2.1.1 Age and gender of the sample 46 4.2.1.2 Occupation 47 4.2.1.3 Income 47 4.2.1.4 Educational Level 48 4.2.1.5 Customers' knowledge about life insurance 48 4.2.2 Verification Result of the Scales 49 4.2.2.1 The Results of Exploratory Factor Analysis (EFA) 49 4.2.2.2 The Results of the Cronbach Alpha Coefficient Analysis 51 4.2.3 Regression Analysis 52 To determine and evaluate the effect of each factors on the decision to buy life insurance, the research used the linear regression 52 4.2.3.1 Adjusted R square and ANOVA Analysis 52 4.2.3.2 Regression Analysis 53 4.2.4 T-test and Anova Differential Analysis 56 4.2.4.1 T-test for Male and Female Customers 56 4.2.4.2 T-test for Customers who have bought and have not bought life insurance before 57 4.2.4.3 Anova Differential Analysis 58 a, Customers of Different Income 58 b, Customers of Different Age Groups 59 CHAPTER – RESULTS ANALYSIS AND RECOMMENDATIONS 61 5.1 Analysis of factors affecting the purchase decision of products insured in the regression model 61 5.2 Recommendations for Life Insurance Companies in Vietnam 62 5.2.1 Raising Awareness of the Benefits of Life Insurance for People 62 5.2.1.1 Focus on expanding and developing communication channels 63 5.2.1.2 Improving skills and knowledge for insurance staff 64 5.2.1.3 Promoting consultation to specific customers 65 5.2.2 Boosting the Reputation of the Company in the Insurance Market 65 5.2.3 Improving Customer Services 66 CONCLUSION 68 REFERENCES 70 APPENDIXES 73 APPENDIXES II: Result of Survey Questionnaire 80 AD&D AIA EFA GDP KMO LI MoF OCB S&P SHB Sig TV USA USD VIB VIF VND VPBank ABBREVIATIONS Accidental Death and Dismemberment America Institute of Architects and the Initials Exploratory Factors Analysis Gross Domestic Product Kaiser – Meyer - Olkin Life Insurance Ministry of Finance Ocean Bank Global Market Intelligence: Saigon Hanoi Bank Significant Television United States of America The United States Dollar Vietnam International Bank Variance Inflation Factor Vietnamese Dong Vietnam Prosperity Bank LIST OF TABLES Table4.1: Survey Questionnaire.………………………………………………… 42 Table 4.2: Customers’ Occupation…………………………………………………45 Table 4.3: KMO and Bartlett’s Test of the Independent Variables……………… 77 Table 4.4: Total Variance Explained of the Independent Variables……………… 77 Table 4.5: Rotated Component Matrix of Independent Variables………………….49 Table 4.6: KMO and Bartlett’s Test of the Dependent Variables………………….79 Table 4.7: Total Variance Explained of the Dependent Variables…………………79 Table 4.8: Cronbach Alpha Reliability Statistics of all variables………………… 50 Table 4.9: Cronbach Alpha Analysis of Variables…………………………………50 Table 4.10: Cronbach Alpha Analysis…………………………………………… 50 Table 4.11: Model Summary of the Regression Analysis………………………….51 Table 4.12: Regression Anova Analysis……………………………………………51 Table 4.13: Regression Analysis of Decision to Buy Life Insurance………………52 Table 4.14: T-test Analysis for Male and Female Customers…………………… 54 Table 4.15: T-test Analysis for Customers who have bought and have not bought life insurance……………………………………………………………………………55 Table 4.16: Descriptive Results between Different Income Range……………… 56 Table 4.17: Anova Analysis for Customers of Different Levels of Income……… 56 Table 4.18: Descriptive Results between Different Age Groups………………… 57 Table 4.19: Anova Analysis for Customers of Different Age Groups…………… 57 Table 4.20: Survey Questionnaire in English………………………………………74 Table 4.21: Survey Questionnaire in Vietnamese………………………………….76 LISTS OF FIGURES Figure 1: Research Process…………………………………………………………14 Figure 2.1: Sheth’s Model of factors that affect customers’ life insurance products purchasing decision (2001)…………………………………………………………23 Figure 2.2: Research Model of factors that affect customers’ life insurance products purchasing decision…………………………………………………………………24 Figure 3.1: Structure of Vietnam Insurance Industry………………………………32 Figure 3.2: Market Share Proportion of Life Insurance Companies in Vietnam (2014) .34 Figure 3.3: Market Share Proportion of Life Insurance Companies in Vietnam (2017) .34 Figure 3.4: Gross Direct Premiums for Insurance Industry in 2015……………… 37 Figure 3.5: Insurance Penetration Rates Vs GDP Per Capita…………………… 38 Figure 4: Customers’ Income Range……………………………………………….46 EXECUTIVE SUMMARY The research conducted to find out and understand consumers’ decisionmaking in the life insurance sector in Vietnam market, to recommend some solutions in order to help life insurance companies make better progress in their business and to collect complementary data of the whole market It has become common that Vietnamese people are uninsured against a wide range of risks, disability, health, longevity, goodness or other pitfalls Conventional thinking assumes that the purchase of risk protection through life insurance products would help to increase individual and social welfare A simple inference is that individuals buy insurance to meet a basic need for protection Life insurance industry was set up in Vietnam in 1996 and up to now, there are enterprises operating in the market and more insurance companies are licensed to operate in the future With the entry of life insurance companies, the life insurance market in Vietnam has developed in terms of scale, products, quality of service and professionalism Total premiums in the first two months of 2018 of life insurance revenue is estimated at VND 9,316 billion, increased 33.34% compared with the same period of 2017 It is from this source that the life insurance industry has provided a large amount of capital for the economy The number of new agents recruited in the first months of 2017 is 141,305 agents, increased 25.3% over the same period last year Life insurance coverage industry is showing great potential to grow in Vietnam market More and more Vietnamese have demands to buy life insurance as a form of saving and accumulating personal financial investment with weak risk control factor Currently the population of Vietnam is 96 million people, ranking 14th in the world, with 66 million people in working age However, the proportion of people taking life insurance now in Vietnam accounts for only 8% of the population With the fact that Vietnam has the highest savings rate in the world and GDP per capita will reach USD 2300 in 2019, the development opportunities for the life insurance industry in Vietnam are believed to be greater, but also the challenges are not small To be successful, businesses need to have production strategy, distribution, and technology in place The research was quantitative research, conducted through offline and offline questionnaire surveys of people who have and have not bought life insurance before 10 the main factors and the content of the observed variables are extracted exactly according to the contents These factors (Motives to buy life insurance; Family's support; Events in life; Barriers to buy insurance; Reputation of the life insurance companies; Distribution channels and Experience) together with Gender, Age and Income Factors are included in T-test, Anova variance analysis and regression analysis with the purchase decision for each type of life insurance products with different contractual terms After running regression for the decision to life insurance products, the results are as follows: QD = 0.47 * DL + 0.654 * DT + 0.193 * KPP - 0.21 * RC + 0.08 * UH + 0.068 * KN + 0.077 * SK The research has made some recommendations for insurance companies operating in Vietnam to improve their business situation Such proposals focus on proposing insurance companies to increase activities to introduce benefits of life insurance to the society, increasing the company's reputation in the market so that many people know the brand and financial strength of the company, focus on improving customer service quality and increase the opportunity for customers to choose products that match their expectations However, due to limited research time, this research still sees some shortcomings, and 233 questionnaires is a small number to represent the whole population of Hanoi The author is also looking forward to implement the research more practically to overcome the errors to make the results more applicable in reality 69 REFERENCES VIETNAMESE Công ty Bảo hiểm Quốc tế Mỹ AIA Việt Nam (2005), Bảng câu hỏi vấn báo cáo nghiên cứu nhu cầu bảo hiểm nhân thọ Việt Nam Hoàng Trọng, Chu Nguyễn Mộng Ngọc (2005), Phân tích liệu nghiên cứu với SPSS, Nxb Thống Kê Nguyễn Thị Ánh Xuân (2004), Nghiên cứu yếu tố ảnh hưởng đến xu hướng mua Bảo hiểm nhân thọ, Luận văn Thạc sĩ, Trường Đại học Bách Khoa Hồ Chí Minh ENGLISH A Arora, 2003, E-Insurance: Analysis of the Impact and Implications of ECommerce on the Insurance Industry, Cass Business School, London Baek, E., & DeVaney, S.A (2005), Human capital, bequest motives, risk, and the purchase of life insurance Journal of Personal Finance, 4(2), pp 62-84 Berekson, L L (1972), Birth Order, Anxiety, Affiliation and the Purchase of Life Insurance Journal of Risk and Insurance, 39, pp 93-108 Bhatia, Nishwan & Sethi, Jyotsna (2007), Elements of Banking and Insurance, New Delhi Burnett, J & Palmer, B A (1991), Examining Life Insurance Ownership through Demographic and Psychographic Characteristics - Journal of Risk and Insurance, 51, pp 453-467 Duker, J M (1969), Expenditures for life insurance among working & wife families, Journal of Risk and Insurance, 36, pp 525-533 10 F Crane 1980, Insurance Principle and Practices, John Willey and Sons 11 Ferber, R., & Lee, L.C (1999), Acquisition and accumulation of life insurance in early married life - Journal of Risk and Insurance, 47, pp 132152 12 Gandolfi, A S., & Miner, L (1996), Gender-Based Differences in Life Insurance Ownership - Journal of Risk and Insurance, 63, pp 683-693 13 Goh S Y (2016), Factors Influencing Life Insurance Consumption, pp 7681 70 14 Hair, Joseph F & William C Black (1992), Multivariate Data Analysis, Macmillan Publishing Company 15 Hamond, J.D & Melander, (1967), Determinants of household life insurance premium expenditures - An empirical investigation Journal of Risk and Insurance, 34, pp 397-346 16 Harriett E Jones (1999), Principles of Insurance - Life, Health, and Annuities, LOMA, chapter 1, pp 8-10 17 Jagdish N Sheth, Banwari Mittal & Bruce I Newman (2001), “Understanding Customer as Financial Services Customer”, Customer behavior - Harcourt Brace College Publishers 18 Jay H Hong & Jose I., (2004), Life Insurance & Household Consumption FRB Philadelphia Working Paper No 04-01 19 Kotler P (2003), Marketing Management (11th international edition), Upper Saddle River, N J., Upper Saddle River - Prentice Hall 20 Mark Adel & Barbara Foxenberger Brown (2003), Foundation of Customer Service - LOMA 21 Rejda, G E (2004), Principles of risk management and insurance (9th ed.) New Jersey: Pearson Education 22 Saunders, M & P Lewis, (2007), Research Methods - Business Students, Fourth Harlow, England, FT Prentice Hall - Pearson Education 23 Sharon N Allen, Mary C Bickley, Jennifer W Herrod, Patsy Leeuwenburg (2003), Life & Health Insurance Marketing - LOMA 24 Showers, V., & Shotick, J (1994), The Effects of Household Characteristics on Demand for Insurance - A Tobit Analysis & Journal of Risk and Insurance, 61, pp 492-502 25 Zhu, Y (2007) & V., One-period model of individual consumption, life insurance & investment decision Journal of Risk and Insurance, 74, pp 613636 WEBSITES TBKD (2018), Nóng bỏng thị trường bảo hiểm nhân thọ accessed November 15th 2018 from http://www.bvsc.com.vn> 71 AQ (2018), Top 10 Công ty bảo hiểm nhân thọ uy tín 2018 accessed November 15th 2018 from http://cafef.vn> Harry Bills (2018), What is life insurance? accessed November 16th 2018 from https://www.legalandgeneral.com> Policy Team (2016), Different types of life insurance accessed November 16th 2018 from https://www.policygenius.com> Hà Phương Thảo (2018), Chỉ số Kinh tế Việt Nam 2018 accessed November 20th 2018 from http://finance.vietstock.vn> 72 APPENDIXES APPENDIXES I: Survey Questionnaire for Customers about Purchasing Life Insurance Decision Questionnaire in English PART 1: Demographic questions Your gender: □ Male □ Female □ Other Your age: □ 25 - 30 years old □ 31 - 40 years old □ 41 - 50 years old □ 51 years old and above □ Other Your educational qualification: □ High-school Graduate □ Bachelor Degree □ Master Degree □ Doctor and Professor Degree □ Other Your occupation: □ Professional worker □ Retailer □ Business owner □ Wage earner □ Other Your monthly income: □ VND 3,000,000 and below □ VND 3,000,000 – VND 8,500,000 □ VND 8,500,000 – VND 13,500,000 □ VND 13,500,000 – VND 18,500,000 □ VND 18,500,000 – VND 24,000,000 □ VND 24,000,000 and above □ Other Have you bought life insurance before? □ Yes □ No From which sources of media you know about life insurance? □ TV □ Newspapers and Magazines □ Friends and Colleagues □ Insurance Agencies □ Other 73 What purposes of life insurance you know? □ Financial Protection □ Saving and Investment □ Retirement □ Educational Funds for Children □ Other PART 2: Rate these following statements according to your evaluation: (1 - Totally Disagree; - Disagree; - Neutral; - Agree; - Totally Agree) Factors Motives to buy life insurance I want to preserve my capital I want to protect my family's finance I want to generate profits I want to save money for retirement I was recommended about the benefits of the insurance by acquaintances 10 Experience when buying life insurance I only buy insurance products from strong financial company that has made me feel assured I only buy insurance from an insurance company that has high customer service I only buy insurance from an insurance company that has professional consultants 11 Events in life My income/salary got increased I'm setting up family I'm having children 74 I have some health problems 12 Barriers when buying life insurance I not believe in Life Insurance Companies Insurance fees are expensive I am not satisfied with current insurance services 13 Reputation of life insurance companies I choose to buy insurance from a prestigious company I choose to buy insurance of the company leading in the customer service I choose to buy insurance of the company that has sustainable development I choose to buy insurance from the company that has strong financial capability in the insurance market 14 Distribution Channels I can easily find suitable insurance products because the insurance agency is willing to introduce its products thoroughly I can easily find information about insurance products because the insurance company has various channels for product introduction There are many different ways to buy insurance: Internet, E-mail, Insurance agencies, Insurance conferences, 15 Opinions of family members and friends I believe that my parents would welcome me to buy life insurance I believe that my husband/wife would welcome me to buy life insurance 75 I believe that my child(ren) would welcome me to buy life insurance I believe that my friends/colleagues would welcome me to buy life insurance 16 Decision to buy life insurance I decide to buy life insurance in the future I will continue to buy life insurance in the future I will recommend my family and friends to buy life insurance in the future Table 4.20: Survey Questionnaire in English (Source: Author’s Illustration) Questionnaire in Vietnamese Bảng hỏi PHẦN 1: Các câu hỏi nhân Giới tính: □ Nam □ Nữ □ Khác Tuổi: □ 25 - 30 tuổi □ 31 - 40 tuổi □ 41 - 50 tuổi □ 51 tuổi trở lên □ Khác Trình độ học vấn: □ THPT □ Cao đẳng, Đại học □ Thạc sĩ □ Tiến sĩ Giáo sư □ Khác Nghề nghiệp: □ Nhân viên chuyên ngành □ Bán lẻ □ Chủ doanh nghiệp □ Người làm công ăn lương □ Khác Thu nhập tháng: □ Dưới 3,000,000 VND 76 □ 3,000,000 – 8,500,000 VND □ 8,500,000 – 13,500,000 VND □ 13,500,000 – 18,500,000 VND □ 18,500,000 – 24,000,000 VND □ 24,000,000 VND trở lên □ Khác Bạn tham gia bảo hiểm nhân thọ chưa? □ Rồi □ Chưa Bạn biết đến bảo hiểm nhân thọ thông qua nguồn thông tin nào? □ TV □ Báo tạp chí □ Bạn bè đồng nghiệp □ Các đại lý bảo hiểm □ Khác Bạn biết đến mục đích nào bảo hiểm nhân thọ? □ Bảo vệ nguồn tài □ Tiết kiệm đầu tư □ Tạo quỹ hưu trí □ Quỹ giáo dục cho □ Khác PHẦN 2: Đánh giá phát biểu sau từ 1-5: (1 – Hoàn toàn không đồng ý; – Không đồng ý; – Trung lập; – Đồng ý; – Hoàn toàn đồng ý) Nhân tố Động lực mua bảo hiểm Tôi muốn bảo tồn số vốn tơi Tơi muốn bảo vệ nguồn tài gia đình Tơi muốn tạo lợi nhuận Tơi muốn tiết kiệm tiền cho hưu Tôi bạn bè người thân giới thiệu lợi ích bảo hiểm nhân thọ 10 Kinh nghiệm tham gia bảo hiểm trước 77 Tôi mua sản phẩm bảo hiểm từ cơng ty có nguồn lực tài mạnh khiến cảm thấy yên tâm Tôi mua bảo hiểm từ cơng ty bảo hiểm có dịch vụ khách hàng tốt Tôi mua bảo hiểm từ công ty bảo hiểm có nhân viên tư vấn chuyên nghiệp 11 Các kiện sống Lương tăng Tơi chuẩn bị lập gia đình Tơi chuẩn bị có Tơi gặp vấn đề sức khỏe 12 Các rào cản mua bảo hiểm nhân thọ Tôi không tin tưởng công ty bảo hiểm Giá gói bảo hiểm cao Tơi khơng hài long với dịch vụ chăm sóc khách hàng 13 Danh tiếng công ty bảo hiểm Tôi chọn mua bảo hiểm từ cơng ty có uy tín Tơi chọn mua bảo hiểm từ công ty dẫn đầu dịch vụ chăm sóc khách hàng Tơi chọn mua bảo hiểm từ cơng ty có phát triển bền vững Tơi chọn mua bảo hiểm từ cơng ty có tiềm lực tài mạnh thị trường 14 Kênh phân phối Tơi dễ dàng tìm sản phẩm bảo hiểm phù hợp đại lý bảo hiểm sẵn lịng giới thiệu sản 78 phẩm cơng ty cách rõ ràng Tơi dễ dàng tìm thấy thơng tin sản phẩm bảo hiểm cơng ty bảo hiểm có nhiều kênh để giới thiệu sản phẩm Có nhiều cách để mua bảo hiểm: Internet, E-mail, Đại lý bảo hiểm, Hội nghị,… 15 Ý kiến gia đình bạn bè Tơi tin bố mẹ ủng hộ mua bảo hiểm Tôi tin vợ/chồng ủng hộ mua bảo hiểm Tôi tin ủng hộ mua bảo hiểm Tôi tin bạn bè đồng nghiệp ủng hộ mua bảo hiểm 16 Quyết định mua bảo hiểm Tôi mua bảo hiểm tương lai Tôi tiếp tục mua bảo hiểm tương lai Tôi giới thiệu cho người thân bạn bè mua bảo hiểm Table 4.21: Survey Questionnaire in Vietnamese (Source: Author’s Illustration) 79 APPENDIXES II: Result of Survey Questionnaire Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted DL1 DL2 DL3 DL4 DL5 12.9828 13.0644 12.9614 13.0901 13.0515 16.629 16.535 17.175 17.048 16.230 758 681 706 642 760 840 858 852 867 838 KN1 KN2 KN3 6.4163 6.3476 6.5408 4.046 3.823 4.025 762 765 747 819 816 832 SK1 SK2 SK3 SK4 9.9700 9.8712 9.8326 10.0086 8.288 7.716 8.968 8.353 565 650 475 552 702 654 749 709 RC1 RC2 RC3 6.7425 6.7082 6.6781 5.002 4.406 5.107 779 814 758 844 814 862 9.9227 12.089 810 878 10.0086 12.078 808 879 9.9957 12.418 794 884 CTBH CTBH CTBH 80 CTBH 10.0386 12.313 770 892 KPP1 KPP2 KPP3 4.9313 4.9785 5.0858 4.219 5.021 4.381 786 767 773 822 843 832 UH1 UH2 UH3 UH4 7.9099 7.8240 7.9571 8.0343 6.703 5.249 7.171 5.938 667 647 443 568 680 671 774 716 QD1 QD2 QD3 7.0601 7.0086 6.7897 6.022 6.655 6.900 863 823 855 877 907 884 Table 4.9: Cronbach Alpha Analysis of Variables (Source: Survey 2018) KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 835 3295.26 df 325 Sig .000 Table 4.3: KMO and Bartlett’s Test of the Independent Variables (Source: Survey 2018) 81 Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Com pone nt % of % of Cumulativ Varian Cumulati Total Variance e% Total ce ve % Total 6.699 25.766 25.766 6.699 25.766 25.766 3.569 13.725 13.725 3.149 12.111 37.877 3.149 12.111 37.877 3.044 11.706 25.431 2.308 8.876 46.753 2.308 8.876 46.753 2.505 9.634 35.065 2.259 8.689 55.442 2.259 8.689 55.442 2.487 9.566 44.631 1.731 6.658 62.100 1.731 6.658 62.100 2.456 9.447 54.078 1.578 6.067 68.167 1.578 6.067 68.167 2.422 9.316 63.394 1.133 4.356 72.523 1.133 4.356 72.523 2.374 9.129 72.523 766 2.946 75.469 701 2.697 78.166 10 623 2.396 80.562 11 560 2.154 82.716 12 512 1.970 84.686 13 482 1.852 86.538 14 413 1.590 88.129 15 385 1.480 89.609 16 332 1.278 90.887 17 326 1.255 92.142 18 297 1.144 93.286 19 273 1.048 94.334 20 256 985 95.319 21 243 936 96.255 22 226 871 97.125 23 215 827 97.953 24 195 749 98.702 25 173 664 99.366 26 165 634 100.000 % of Cumulativ Variance e% Extraction Method: Principal Component Analysis Figure 4.4: Total Variance Explained of the Independent Variables (Source: Survey 2018) 82 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square df Sig .759 537.038 000 Table 4.6: KMO and Bartlett’s Test of the Dependent Variables (Source: Survey 2018) Total Variance Explained Componen t Initial Eigenvalues % of Cumulative Total Variance % 2.609 86.964 86.964 228 7.606 94.570 163 5.430 100.000 Extraction Sums of Squared Loadings % of Cumulative Total Variance % 2.609 86.964 86.964 Extraction Method: Principal Component Analysis Table 4.7: Total Variance Explained of the Dependent Variables (Source: Survey 2018) 83 ... OF FACTORS AFFECTING LIFE INSURANCE PURCHASING DECISION This chapter provides a background of the theory relating to factors affecting customers’ life insurance purchasing decision It defines... saving money: investing, saving money in banks and purchasing life insurance Investing in life insurance is an effective way of saving and also bring out interest in the future  Retirement: In. .. different types of life insurance and factors that influence that decision to buy life insurance 2.1 Introduction to Life Insurance 2.1.1 Definitions of Life Insurance ? ?Life insurance is a contract