Journal of Research Capstone

THE LEVEL OF UNDERSTANgraDING OF LIFE INSURANCE

AMONG THE GRADUATING STUDENT OF DONA JUANA CHIOCO
NATIONAL HIGH SCHOOL1
2
Camante, James G., 2 Fabro, Christian G., 2 Ramirez, Justine Paul C., 2 Waliwar, John
Michael R., 2 Alambra, Jamin L.,2 Camat, L.A M., 2 Dacanay, Joy Nicole B., 2 Ganzagan,
Elaiza P., 2 Mendioro, Denise Jay Nel A., 3Memita, Neil B. and 3Anarcon, Joewen V.

ABSTRACT

Our study aims to provide valuable insights into the level of understanding of life
insurance among graduating students of Dona Juana Chioco National High School
through descriptive research cum comparative and correlational design and stratified
random sampling that examines the relationship and differences of the various factors
and the level of understanding of life insurance among students. By using a valid and
reliable research methodology, we can confidently present our findings as a contribution
to the existing knowledge on life insurance and inform policymakers, educators, and
other stakeholders on how to improve financial literacy among students. The study
results showed that in terms of the Socio-demographic characteristic relationship towards
attitude and level of understanding, there is no significant relationship between the socio-
demographic characteristics to the attitudes of graduating students and the level of
understanding of graduating students with a significance total of 0.017 for the socio-
demographic characteristic and attitude and 0.002 for the socio-demographic
characteristic and level of understanding. Another study shows that the Academic award
and level of understanding of life insurance is there are no significant differences. Lastly,
in terms of sex, the result showed that there are significant differences between the sex
of respondents and their level of understanding toward life insurance.

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INTRODUCTION penetration rate of the insurance industry in

Life insurance is essential to financial
planning, providing individuals with
financial protection and peace of mind. In the
Philippines, the life insurance industry has
experienced significant growth in recent
years, with a 55 percent increase in new-
insured people in 2022 (Statista Research
Department, 2023). Despite this growth, the
the country remains below 2%, indicating a
need to increase awareness and
understanding of life insurance products.
However, the penetration rate of the
insurance industry in the country remained
below 2% (Statista Research Department,
2023). Concerning this, different factors
should be considered to influence a person to
have life insurance. Sociall influence agents,

Senior High School Department 1


including family members, peers, and the
IInternett, significantly explain peoples'
perception toward life insurance (Lim,
Dzulkifli, Osman, Mohidin, & Jamal, 2020).
Life insurance is an essential financial
product that can provide peace of mind and
financial security for individuals and families
in the Philippines. However, despite its
importance, not all Filipinos clearly
understand what life insurance is and how it
can benefit them. This research aims to
investigate the perception of Filipinos,
specifically the selected graduating students
of senior high school from the Dona Juana
Chioco National High School, towards life
insurance, including their knowledge,
attitudes, and beliefs about the product. By
exploring the factors influencing Filipinos'
decision-making regarding life insurance,
this study seeks to better understand the
challenges and opportunities for increasing
life insurance uptake in the Philippines.
Ultimately, the findings of this research can
help inform strategies and policies to
improve financial literacy.
Statement of the Problem
This study's primary focus is to assess the
selected senior high school students'
perception of life insurance. Specifically, this
study sought to answer the following
questions:
1. How the graduating students of the
Dona Juana Chioco National High
School be described in terms of:
1.1 sex
1.2 age
1.3 family monthly income
1.4 academic award
2. What is the attitude of the graduating
students toward life insurance?
Senior High School Department
Journal of Research Capstone
3. What is the level of understanding of
the graduating students about life
insurance?
4. Is there a significant relationship
between the socio-demographic
characteristic and their attitude to life
insurance to their level of
understanding of life insurance?
5. Is there a significant difference in the
respondents' level of understanding of
life insurance across academic
awards?
Hypothesis
At 0.05 level of significance, the
researchers inferred the following:
There is no significant relationship
between the socio-demographic characteristic
and their attitude to life insurance to their
level of understanding of life insurance.
The level of understanding of life
insurance across academic awards of the
respondents is the same.
Significance of the Study
This study has the potential to benefit
learners, teachers, researchers, and future
researchers by providing knowledge about
life insurance, teaching budgeting skills, and
offering insights into how life insurance can
help individuals and families in different
situations. The study can serve as a valuable
resource for researchers and can be used as a
reference for future investigations.
Scope and Delimitation
This study aims to assess the
comprehension level of life insurance among
500 graduating students from Doña Juana
Chioco National High School. The focus is to
identify the level of knowledge of life
2

insurance among the students and what they
understand about it. The study will be
restricted to the graduating students of Doña
Juana Chioco National High School for the
school year 2022-2023 during the first
semester.
METHODS
Research Design
In this study, the researchers used a
descriptive survey with correlative and
comparative design to describe the socio-
demographic characteristics of the
respondents, their attitude toward insurance,
and their level of understanding about life
insurance using a survey questionnaire to
find the relationship and compare the
variables used in this study.
Sampling
For the academic year 2022–2023, a
Stratified Random Sampling method was
used to choose respondents from the
graduating senior high school class.
Instrument Of Study
The researchers employed a survey
questionnaire that included three primary
categories: the graduating students' socio-
demographic profile, attitude, and level of
comprehension of life insurance.
Respondent Of the Study
Doña Juana Chioco National High
School is Lupao, Nueva Ecija's largest
secondary high school. There are 483
graduate students total at Dona Juana Chioco
National High School, including 337 students
on the academic track and 146 on the TVL
track. 100 Doña Juana Chioco National High
Senior High School Department
Journal of Research Capstone
School graduates chosen randomly for the
study will serve as the total respondents.
Data Gathering Procedure
In the school of Doña Juana Chioco
National High School in Poblacion West,
Lupao, Nueva Ecija, the researchers
conducted their survey. Their survey
questionnaire had a problem: the researchers
put wrong grammar in the intro, but the
researchers discussed and corrected it with
the respondents. The researcher went to the
respectable classrooms of the grade-12
students that will be their study’s
respondents. The researcher asked first
permission from their respectable subject
teacher before the researcher conducted their
survey. After being given permission, the
researchers explained the purpose of the
study to the random respondents. The
researchers collected data utilizing a survey
questionnaire that comprised their age,
gender, monthly income, and especially their
perception of life insurance. The researchers
gathered data in 2 days. After the researchers
conducted the survey, the researcher
analyzed and interpreted the respondents’
answers and tallied the result of the
respondent's answers.
Data Analysis
Microsoft Excel was used to encode
all of the research respondents' data. As a
result, data was exposed to analysis using
SPSS, or Statistics Package for the Social
Sciences. The researcher employed the
following tools to examine the data:
1. Descriptive statistics, such as mean,
standard deviation, frequency, and
percentage, are used to respond to Statements
1, 2, and 3.
3

2. The inferential difficulty of this study was
addressed using inferential statistics, such as
the correlation and independent sample t-test.
RESULTS AND DISCUSSION
I. The Socio-Demographic Profile of the
Respondents
The socio-demographic profile of the
respondents is shown in Table 1. There are
39 male and 61 female respondents, totaling
100. The youngest respondent is 17 years
old, and the oldest is 22, with a mean of
Journal of Research Capstone
The attitude of the graduating
students toward life insurance is shown in
Table 2. In general, the graduating students
have a positive attitude about life insurance
(x= 3.58). Expressly, the graduating student's
respondents agreed that they are happy to
have life insurance (x =3.53), feel secure to
have life insurance (x =3.52), are aware of
life insurance (x = 3.63), life insurance can
be helpful to that future (x =3.89), reassured
to have life insurance (x =66), confidence of
having life insurance (x =3.46).
X QD

17.56 and a standard deviation of 0.845. The 1. I feel happy to have life insurance 3.53 A
result indicated that the average age of the
2. I am satisfied with what I know about 3.39 N
respondents still needs to be legally qualified life insurance
to have their insurance. On the other hand,
3. I feel secure having life insurance 3.52 A
the family monthly income of the
respondents ranged from Php 5,000 to Php 4. I am aware of life insurance 3.63 A
70,000 with a mean of Php 14,370 and a 5. it can be helpful to me and my future 3.89 A
standard deviation of 14,400.24. The result
signifies that the respondents of this study 6. I feel reassured if I have life insurance 3.66 A

belonged to the average income earner, as 7. I feel confident about having life 3.46 A
reported by the Philippine Statistics insurance
Authority. In addition, the respondents are total 3.58 A
composed of 41 honors students and 59 non-
honors.

Age x SD
17-22 17.56 0.845
Sex f %
Male 39 35.8 III. The level of understanding of the
Female 61 56.0 graduating student about life insurance.
Monthly Income x SD
5000-70000 14370.00 14400.24 The level of understanding of the
Academic award f % graduating students about life insurance. As
With Honors 41 37.6 shown in Table (11) 3. In general, the
Without Honors 59 54.1 graduating student has a good level of
understanding toward life insurance (x=3.75).
Table 1. The socio-demographic profile of the students. Expressly, the graduating student respondent
agreed that they need to have life insurance
II. The attitude of the graduating students (x=3.66) (As students) they need to know
toward life insurance about life insurance (x=3.90), aware that life
insurance is beneficial 3.89), life insurance is
essential in their life (x=3.84) Life insurance
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provides many things (x=3.67) Life insurance
can protect in any unexpected events
(x=3.68) Life insurance will help their plans
(x=3.73) Life insurance can save their life
and the life of their Family (3.64).
1. As a student, I need to have life
insurance
2. As a student, I need to know about life
insurance
3. As a student, I am that life insurance is
beneficial to me
4. As student life insurance is essential in
our life
5. As a student, life insurance provides
many things to me
6. As a student, I know life insurance can
protect me in any unexpected events
7. As a student, life insurance will help me
in my plans
8. As a student, I know life insurance can
protect me and my family
total
IV. Correlation
The respondents' socio-demographic
characteristics (age and monthly income)
have no significant relationship to their
attitude and level of understanding toward
life insurance. The result shows that there is
no significant relationship between group
variables (age and monthly income) to test
variables (attitude with a genuine
significance of 0.159 (2-tailed) and level of
understanding with a total significance of
0.061 (2-tailed) toward life insurance.
Total
Attitude
Age Person (.142)
Correlation
Senior High School Department
Journal of Research Capstone
Sig.(2-tailed) (159) (.061)
N 100 100
Monthly Person (.160) (.143)
income Correlation
Sig.(2-tailed) (112) (.154)
X QD
N 100 100
3.68 A
3.90 A V. Result of T-test
3.89 A With honors and without honors,
respondents have no significant difference in
3.84 A across to their level of understanding toward
life insurance. The result shows no
3.67 A significant difference between the group
variables (with honors and without honors
3.68 A respondents) to the variable test level of
understanding towards life insurance with a
3.73 A total significant 0.352).
3.64 A Conclusion
3.75 A Based on the study’s findings, it can
be concluded that the respondents aged 17-
22, with a mean of 17.56, can’t apply for life
insurance because they are not the right age.
That’s why the researcher expected that
respondents have a poor understanding of life
insurance. The respondent's monthly income
is 5,000-70,000 pesos, with a mean of 14,370
pesos. It can be concluded that most of the
respondents’ families can't avail of life
insurance because they have a low monthly
income. That’s why the researcher expected
that respondents don't understand life
insurance enough. The respondents' socio-
demographic characteristics (age and
monthly income) have no significant
relationship to their attitude and level of
The total understanding toward life insurance. The
level of result shows that there is no significant
understanding
relationship between group variables (age
(.188) and monthly income) to test variables
(attitude with a real significance of 0.159 (2-
5
 Journal of Research Capstone
tailed) and level of understanding with a total 1. Having orientation for Doña Juana Chioco
significance of 0.061 (2-tailed) toward life National High School students about life
insurance. With honors and without honors, insurance.
respondents have no significant difference in
across to their level of understanding toward 2. Teaching students about life insurance in their
life insurance. The result shows no free time.
significant difference between the group
variables (with honors and without honors 3. Re-teach what the students learn about life
respondents) and the variable test tester insurance in orientation to their family, peers, and
standing towards life insurance with a total of friends.
0.352). In addition, male and female
respondents have a significant difference
concerning their attitude and level of References
understanding toward life insurance. The
results show a significant difference between BIBLIOGRAPHY
the group variables (male and female) to the
test variable (attitude with a total significance Lim, T. S., Dzulkifli, D. Z., Osman, Z., Mohidin, R.,
of 0.017 and level of understanding with a & Jamal, A. A. (2020). Determinants of
total significance of 0.002). These results Perception Toward Life Insurance and its
show that females have a better attitude and Impact on Intention to Purchase. Labuan
understanding than males. The study’s
Bulletin of International Business and
results, a questionnaire, and statistics show
Finance (LBIBF), Vol. 18 No. 1 (2020).
that the respondents have a positive attitude
and suitable level of understanding towards
life insurance. However, despite its result, the Statista Research Department. (2023). Number
total mean of it is still low. That’s why the of newly-insured people in the
researchers considered that the school needs Philippines from 2016-2021. Statista, 1.
to have lessons about life insurance so the
student can have the knowledge and better
understanding of life insurance while they are
in secondary; the school can give a memo
where the teachers will teach the student in
their time for 10 minutes or in the
intervention time so the teacher is the one
who will lead the students. Also, the school
can have an orientation, programs, and
seminars so students can be oriented about
life insurance and reteach the knowledge they
can get to their family, peers, and friends.

Recommendation

The researchers want to recommend the

following to the other researchers:

Senior High School Department 6

 Journal of Research Capstone

Senior High School Department 7

 Journal of Research Capstone

Senior High School Department 8