FACTORS AFFECTING THE PURCHASE OF LIFE INSURANCE IN THE CASE OF ETHIOPIAN INSURANCE CORPORATION IN GONDAR TOWN

Abstract

Life insurance is an important aspect of the social-economic development of the country. Despite its importance the consumption of life insurance in Ethiopia is very low compared to other countries. The benefit of life insurance is paramount for an individual, to the society at large and also to the development of the country as a whole. It provides economic links among individuals, families and communities; it has been taken as an important element for individuals and families to overcome risk attached with income. Insurance protects families against financial distress in the event when the bread winner dies that leads to loss of income. Also, life insurance enhances long-term savings and the re-investment in private and public sector projects. The main purpose of the study is to identify and investigate Factors Affecting the Purchase of Life Insurance In The Case Of Ethiopian Insurance Corporation in Gondar Town. The study will employ descriptive and explanatory research design to collect both primary and secondary data, furthermore the approach of the study will be quantitative. The population of the study will comprises of customers of EIC life unit. Considering the size of customers’ of life insurance, the researcher will take all 200 customers of EIC life unit by using a censes method. The study will employ structured questionnaires as the main research instrument. Descriptive statistics will be used to summarize the respondents’ demographic characteristics and multiple regression analysis will also be used to explain the nature of the relationship between household’s consumption of life insurance and factors that influence it. The finding shows that from the identified factors four of the were found to be significantly capable of influencing life insurance consumption in EIC Gondar Town, and income level of households is the highest influencer,