Abstract—The research objective of this paper is to determine the socio-demographic and economic factors that have significant influence on the demand for life insurance in Malaysia. A hurdle count-data model is used to accommodate the separate decisions on the demand for life insurance which is divided into two parts: whether to purchase a life insurance policy and if so, how many policies to purchase. The results show that there are some slight differences in the factors that determine the decision to purchase life insurance and the quantity of life insurance policies that a consumer will purchase.
Index Terms—hurdle-count data model, life insurance, zero truncated poison.
Yiing Jia Loke is with the School of Social Sciences at Universiti Sains Malaysia , 11800 Penang, Malaysia. (e-mail: firstname.lastname@example.org).
Yi Yuern Goh is with HSBC in Penang, Malaysia. (email:email@example.com)
Cite: Yiing Jia Loke and Yi Yuern Goh, "Purchase Decision of Life Insurance Policies among Malaysians," International Journal of Social Science and Humanity vol. 2, no. 5, pp. 415-420, 2012.