This study investigates customer purchase intentions for traditional life insurance products, focusing on the impact of financial literacy. It investigates the specific challenges faced by life insurance companies in Indonesia due to tightening regulations imposed by Indonesia's financial service authority ("OJK") regarding unit-link insurance products, a modified whole life insurance product that combines protection and investment. As a result, life insurance companies have recently competed to supply traditional life insurance products to ensure company continuity. By addressing the need for more research in this area, this study fills a void by informing life insurance companies on how financial literacy influences consumer purchase intentions of traditional life insurance products.
This study gives a thorough knowledge for life insurance companies to establish ways to learn more about consumer behavior in the emergence of various traditional life insurance products through a synthesis of existing literature, qualitative research findings, and empirical evidence. The suggested research framework emphasize critical characteristics of financial literacy,attitude, subjective norm, perceived behavior control, and their impact on customer purchase intention of traditional life insurance products.
While this conceptual article provides valuable insights and a research framework, a more empirical study is required to validate and expand on the offered claims. Future research should look into the impact of financial literacy on consumer purchasing intentions, particularly among generation Z.
This study will benefit others, mainly by providing insights to the boards of management of life insurance companies in understanding the consumer intention of the traditional life insurance product, particularly in understanding the shift from unit-link life insurance products to traditional life insurance products.