Theoretical Framework

This study is anchored from the theoretical support of Kunreuther and Pauly
(2015), the theory of insurance decision-making. It describes behavior that does
not conform to standard economic models of choice and decision-making,
resulting them to having different sets of considerations particularly with the
presence of risk and uncertainty. In life insurance’s context, this theory supports
the research problem of determining the most chosen factors among consumers
when looking for life insurance policy together with the impact of it on their
decision-making in purchasing life insurance policy.
In another perspective of decision-making, it was revealed that consumers find it
difficult to make the decision of whether to get insurance or not. This problem
stems from decision-makers' illogical conduct. Tversky and Kahneman (1981),
who clarify that not everyone thinks logically, provide evidence to support this
claim. Individual conduct has an impact on this irrationality. Individual behavior
studies in finance are thus becoming more and more popular. Ackert and Deaves
(2010), who argue that there has been a quick advancement in the psychology of
financial behavior, support this claim.

Reference:
giri, manohar. (2018). a behavioral study on life insurance purchase decision
(thesis), from https://www.iitk.ac.in/ime/devlina/data/Manohar%20Giri%20PhD
%20Thesis%20_Final-4-10-19.pdf

Wang, H. (n.d.). FACTORS INFLUENCING CONSUMERS’ LIFE INSURANCE

PURCHASING DECISIONS IN CHINA. Retrieved July 16, 2023, from
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