Perception of Consumers Towards The Purchase of Life Insurance Policy in Lagos State

Abstract

In Nigeria, an insurance firm's performance is directly related to the perception of its product by its customers.This may explain why the majority of the insured population continues to pay their premiums. The study's goal is to look into consumers' attitudes toward purchasing life insurance policies in Nigeria. The study's specific goals are to measure the effects of culture, religion, and family background on life insurance policy purchases in Nigeria. This study adopted a survey research research design. The study's population is 42,832, and the sample size is 396. The questionnaire was administered to the survey participants using a survey monkey, and 390 questionnaires were collected. SPSS was used to analyze the hypothesis using regression analysis. The R value (.621) at the 5% significance level implied a strong positive correlation between culture and life insurance policy patronage, and it is statistically significant at.000, which is less than (P<0.05). The results also revealed a strong positive correlation between religion and life insurance policy patronage, as implied by the R value (.811) at the 5% significance level, and it is statistically significant at.000, which is lower than (P0.05). The analysis demonstrated that demographic factors play a significant role in different degrees in Nigerians' perceptions toward insurance services. Age, marital status, educational status, occupation, household income, and so on. It was suggested that life insurance media advertisements be more informative, as the most of the target audience is well knowledgeable about life insurance. This will improve public product knowledge, ease of access, and claim settlement process.