LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Amit Keyal, Suman Bhattacharya

Abstract:Life insurance functions as a mechanism to mitigate the financial uncertainties that arise following the passing of the primary earner. This is particularly pertinent in developing countries such as Nepal, where income streams rely significantly on remittances from abroad and tourism. Aspects of life insurance coverage tend to be concentrated in urban areas. The primary aim of the study was to delve into the factors that mold decisions regarding life insurance within Kathmandu Valley. The study specifically delved into financial knowledge, advantages related to taxation, perceptions of risk, and the repercussions of the pandemic. All these factors displayed a positive correlation with the choice to acquire life insurance. The research process entailed collecting primary data from diverse locations within Kathmandu Valley, followed by refining the dataset to conform to analysis standards. This refined dataset was subsequently subjected to Pearson’s Correlation and Regression analyses. The findings were then visually presented using graphs and tables, allowing for a lucid representation of life insurance uptake trends in the region. Data scrutiny revealed that women exhibit a greater hesitancy towards embracing life insurance compared to their male counterparts. This variance is likely attributed to socio-economic and cultural influences that shape women’s decision-making paradigms. Conversely, individuals with higher incomes tend to exhibit less inclination towards opting for life insurance coverage, possibly due to a perceived capacity to rely on surplus funds following the demise of the primary earner. Conversely, those with limited incomes tend to prioritize immediate financial needs over life insurance provisions. In conclusion, the study establishes a positive link between the examined determinants and the inclination to invest in life insurance. However, avenues for augmenting life insurance adoption remain. A suggested strategy involves augmenting awareness concerning the tax benefits linked to premium payments. In summary, this research yields significant insights into the forces that mold decisions around life insurance within the distinctive context of Nepal’s Kathmandu Valley. It also suggests pragmatic avenues for elevating awareness and comprehension, thereby fostering the embrace of life insurance products.

Keywords:Life Insurance, Purchase Decision, Covid 19