Advances in Consumer Research
Issue 4 : 355-370
Original Article
Behavioural Biases and Demographic Dynamics: Unraveling the Determinants of Life Insurance Purchase Intentions
 ,
 ,
1
Research Scholar, BML Munjal University, Gurugram.
2
Professor, BML Munjal University, Gurugram.
3
Associate Professor, BML Munjal University, Gurugram; Research Fellow, INTI University Malayisa
Abstract

This study examines the impact of behavioural biases and demographic characteristics on life insurance purchase intentions. The research highlights how cognitive factors such as overconfidence, loss aversion, social norms, and hyperbolic discounting influence financial decision-making and how these effects are moderated by age, gender, and education. A quantitative research design was employed using survey data from 509 urban respondents, especially those from lower income group or unorganized sector. Hierarchical multiple regression analysis was applied to assess the direct effects of behavioural biases on life insurance purchase intentions and the moderating role of demographic variables. The study leverages prospect theory and behavioural economics to interpret consumer decision-making patterns. The findings indicate that overconfidence negatively impacts life insurance purchase intention, while loss aversion and social norms positively influence it. Hyperbolic discounting shows a marginal negative effect. Additionally, demographic factors moderate these relationships, with higher education mitigating overconfidence, age reducing its negative impact, and social norms influencing women’s purchase intentions more significantly than men’s. Findings suggest that insurers should develop targeted financial education programs to mitigate overconfidence and enhance consumer awareness. Marketing strategies can leverage social norms to improve insurance adoption, particularly among women. Customized insurance products and incentives addressing behavioural biases may enhance policy uptake.

Keywords
Recommended Articles
Research Article
Employees’ Perceptions of Job Evaluation Practices: Evidence from the Textile Industry in Uttar Pradesh
Published: 30/09/2025
Research Article
Publishing Of Reports Via Camunda Workflow Orchestration for A Financial Institute
Published: 30/09/2025
Research Article
E-Commerce vs. Traditional Retail: A Data-Driven Comparison of Profitability and Sustainability
Published: 30/09/2025
Research Article
Strategic Patient-Centric Brand Management in Pharma: Transforming Value Creation through VRIO Analysis
Published: 30/08/2025
Loading Image...
Volume 2, Issue 4
Citations
116 Views
90 Downloads
Share this article
© Copyright Advances in Consumer Research