PREDICTING LIFE INSURANCE OWNERSHIP: THE ROLE OF SOCIOECONOMIC FACTORS

Abstract

Life insurance ownership is an important part of financial stability, yet ownership rates differ dramatically across income levels and demographic groupings. In order to encourage financial sustainability among a variety of demographics, it is crucial to comprehend the elements that influence life insurance ownership. This study utilizes logistic regression to predict the likelihood of life insurance ownership, with a particular focus on the impact of income and other socioeconomic factors. The findings show a substantial, positive association between income and the chance of carrying life insurance, with higher-income persons being much more likely to have policies. Education and marital status were also found to influence the probability of life insurance ownership. These results shed light on the socioeconomic variables influencing the purchase of life insurance by indicating that income differences are the main obstacle to life insurance accessibility. The study findings provide policymakers and insurers with recommendations for expanding life insurance coverage, especially among lower-income households. By identifying income disparities as a key barrier to accessibility, this research underscores the need for targeted strategies such as subsidized premium schemes, flexible payment options, and microinsurance products designed for affordability.