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Affordable Life Insurance Spending Among B40 Income Group in Malaysia: A Case Study

Author

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  • Noraini Manan

    (Center for Actuarial Sciences Studies, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia)

  • Nurhasniza Idham Abu Hasan

    (Department of Statistics, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400 Tapah Road, Perak, Malaysia)

  • Nur Faezah Jamal

    (Department of Statistics, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400 Tapah Road, Perak, Malaysia)

Abstract

Life insurance is critical in providing coverage and protection against the risk of a person’s death and total permanent disability. However, only a small number of Malaysians own life insurance and a few of them are from the B40 group. This paper examines the consumption of Life Insurance and Takaful policies for the B40 group in Malaysia. The secondary data were obtained from 15 Takaful operators in Malaysia from the year 2014-2019. There are six factors namely, (1) Ethnicity, (2) Monthly Income, (3) Gender, (4) Age, (5) Occupation, and (6) Highest level of education that use to predict the affordance amount of insurance spending among B40 group in Malaysia. By using Multiple Linear Regression (MLR) indicates that ethnicity, monthly income, and education level were statistically significant to predict the affordance amount of insurance spending among B40 group in Malaysia. Based on their monthly income, the average affordable amounts spending among B40 group were RM 43.48±84.38. Therefore, in promoting financial services that are accessible to all Malaysian especially B4 group, it was suggested to provide an affordable amount of premium for B40 group.

Suggested Citation

  • Noraini Manan & Nurhasniza Idham Abu Hasan & Nur Faezah Jamal, 2021. "Affordable Life Insurance Spending Among B40 Income Group in Malaysia: A Case Study," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(10), pages 22-25, October.
    • Handle: RePEc:bjc:journl:v:8:y:2022:i:10:p:22-25
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    1. repec:eme:mfppss:03074350310768779 is not listed on IDEAS
    2. Liu, Tsai-Ching & Chen, Chin-Shyan, 2002. "An analysis of private health insurance purchasing decisions with national health insurance in Taiwan," Social Science & Medicine, Elsevier, vol. 55(5), pages 755-774, September.
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