The demand for life insurance: a quantitative study among “generation y” in the Klang Valley, Malaysia

Keywords: Life insurance, “Generation Y”, quantitative, Malaysia


Despite the importance of life insurance as an investment for protection, many of us, especially the young generation were still unaware of the importance to purchase their own life insurance. Therefore, the objective of this study was to investigate factors that related to the demand for life insurance among “Generation Y” in the Klang Valley, Malaysia. Using a purposive sampling method, a total of 320 respondents from Klang Valley, Malaysia involved in this study. All data gathered were tabulated and analysed using SPSS, employing Descriptive Analysis, Independent Sample T-Test, One-way ANOVA, Pearson’s Correlation Analysis and Multiple Linear Regression Analysis. The results showed that there is a moderately important level of demand for life insurance among the “Generation Y”. Significant differences were found in demand for life insurance in accordance with gender, age group, monthly income, and education level. Besides, significant relationships were found between income level, knowledge of life insurance, income protection, risk attitude, and demand for life insurance. Furthermore, risk attitude, income level, knowledge of life insurance, and income protection were the predictor factors of demand for life insurance. 


Download data is not yet available.


Metrics Loading ...

Author Biography

Jee Fenn Chung, Berjaya University College - Malaysia

Associate Professor and Head-Centre for Institutional Research, BERJAYA University College.


Ackah, C., & Owusu, A. (2012). Assessing the knowledge of and attitude towards insurance in Ghana [Paper presentation]. International Research Conference on Microinsurance, Twente.

Arun, T.G., Bendig, M., & Arun, S. (2012). Bequest motives and determinants of micro life insurance in Sri Lanka. World Development, 40(8), 1700-1711.

Bank Negara Malaysia. (2018, July 12). Governor’s remarks at the Malaysian Insurance Institute (MII) Summit–“Innovation in a Disruptive Era”.

Bartlett, J.E., Kontrlik, J.W., & Hinggins, C.C. (2001). Organizational research: Determining appropriate sample size in survey research. Information Technology, Learning, and Performance Journal, 19(1), 43-50.

Beck, T., & Webb, I. (2003). Economic, demographic, and institutional determinants of life insurance consumption across countries. The World Bank Economic Review, 17(1), 51-88.

Bernheim, B.D. (1991). How Strong Are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities. Journal of Political Economy, 99(5), 899-927.

Browne, M.J., & Kim, K. (1993). An international analysis of life insurance demand. The Journal of Risk & Insurance, 60(4), 616-634.

Burnett, J.B., & Palmer, B.A. (1984). Examining life insurance ownership through demographic and psychographic characteristics. Journal of Risk and Insurance, 51(3), 453-467.

Cai, J., De Janvry, A., & Sadoulet, E. (2011). Social networks and insurance take up: Evidence from a randomized experiment in China. International Labour Organization, Microinsurance Innovation Facility Research Paper.

Cleeton, D.L., & Zellner, B.B. (1993). Income, risk aversion, and the demand for insurance. Southern Economic Journal, 60, 146-156.

Dercon, S., Gunning, J.W., & Zeitlin, A. (2011). The demand for insurance under limited credibility: Evidence from Kenya [Paper presentation]. The International Development Conference, DIAL, Paris.

Fischer, S. (1973). A life cycle model of life insurance purchases. International Economic Review, 14(1), 132–152.

Fukuchi, K. (2016). An empirical study of the demand for modern individual life insurance in Japan. “Hokengakuzasshi” (Journal of Insurance Science), 633, 1-31.

Ghimire, R. (2017). Perception of uninsured person towards the life insurance policy. SSRN Electronic Journal, (January 2017), 111-123.

Giné X., Townsend, R., & Vickery, J. (2008). Patterns of rainfall insurance participation in rural India. The World Bank Economic Review, 22, 539- 566.

Hair, J., Bush, R., & Ortinau, D. (2006). Marketing Research within a Changing Environment, (3rd ed.). McGraw Hill.

Hwang, T., & Greenford B. (2005). A cross-section analysis of the determinants of life insurance consumption in mainland China, Hong Kong, and Taiwan. Risk Management and Insurance Review, 8(1), 103-125.

Ioncica, M., Petrescu, E.C., Ioncica, D., & Constantinescu, M. (2012). The role of education on consumer behavior on the insurance market. Procedia Social and Behavioral Sciences, 46, 4154-4158.

Krejcie, R.V., & Morgan, D.W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.

Lee, Y.W. (2012). Asymmetric information and the demand for private health insurance in Korea. Economics Letters, 116(3), 284-287.

Lewis, F. (1989). Dependents and the demand for life insurance. American Economic Review, 79(3), 452–466.

Life Insurance Association Malaysia. (2020, March 16). LIAM: Life insurance records double digit growth in 2019.

Loke, Y.J., & Goh, Y.Y. (2012). Purchase decision of life insurance policies among Malaysians. International Journal of Social and Humanity, 2(5), 415-420.

Loon, A.C., Tee, K.H., & Santhanarajan, M.E. (2019). Factors influencing life insurance consumption in Malaysia. In G.Y. Xiao, et al. (Eds.), EBIMCS ‘19: The 2019 2nd International Conference on E-Business, Information Management and Computer Science (pp. 1–5). Association for Computing Machinery, New York, United States.

Mahdzan, N.S., & Victorian, S.M.P. (2013). The determinants of life insurance demand: A focus on saving motives and financial literacy. Asian Social Science, 9(5), 274-284.

Malaysian Takaful Association. (2019). Annual Report 2019.

Mitra, A. (2017). Influencers of life insurance investments: Empirical evidence from Europe, Australasian Accounting, Business and Finance Journal, 11(3), 87-102.

Ng, M.S. (2018, October 15). Insurance sector’s consolidation is not easy. The Malaysian Reserve.

Pliska, S., & Ye, J. (2007). Optimal life insurance purchase and consumption/investment under uncertain lifetime. Journal of Banking & Finance, 31(5), 1307-1319.

Redzuan, H. (2014). Analysis of the demand for life insurance and family takaful. Proceedings of the Australian Academy of Business and Social Sciences Conference in partnership with the Journal of Developing Areas (pp.1–16).

Sarkodie, E.E., & Yusif, H.M. (2015). Determinants of life insurance demand, consumer perspective–A case study of Ayeduase-Kumasi Community, Ghana. Business and Economics Journal, 6(170), 1-4.

Shahriari, S., & Shahriari, M. (2016). The effect of social and demographic and economic factors on life insurance demand. International Journal of Management and Social Science Research Review, 1(28), 200-207.

Soo, H.H. (1996). Life insurance and economic growth: Theoretical and empirical investigation. ETD collection for University of Nebraska–Lincoln. AAI9712527.

Stroe, M.A., & Iliescu, I.M. (2013). Attitudes and perception in consumers’ insurance decision. Global Economic Observer, 1(2), 112-120.

Tee, C.H. (2020). Factors influencing demand of life Insurance among generation Y In Klang Valley. Unpublished research project, Berjaya University College.

Tennyson, S., & Yang, H.K. (2014). The role of life experience in long term care insurance decision. Journal of Economic Psychology, 42(1), 175-188.

The Star. (2018). Trends in and outlook for the Malaysian assurance industry. The Star Online.

Todd, P. (2004). Integrative life insurance need analysis. Journal of Society of Financial Service Professionals.

Wang, H.H., & Rosenman, R. (2007). Perceived need and actual demand for health insurance among rural Chinese residents. China Economic Review, 18(4), 373-388.

Yaari, M.E. (1965). Uncertain lifetime, life insurance and the Theory of the Consumer. The Review of Economic Studies, 32(2), 137-150.

Yuengert, A.M. (1993). The measurement of efficiency in life insurance: Estimates of a Mixed Normal-Gamma Error Model. Journal of Banking and Finance, 17(2-3), 483-496.

How to Cite
Chung, J. F. (2020). The demand for life insurance: a quantitative study among “generation y” in the Klang Valley, Malaysia. Religación, 5(25), 302-313.