Abstract:
The main purpose of this study was to investigate the determinants of life insurance policy
purchase in Ethiopian Insurance Corporation. Descriptive study deigns and mixed research
approach was adopted to answer the research questions. Primary data have been collected
through questionnaire and interview. To achieve the objective of the study 207 questionnaires
were distributed and 198 of them were successfully completed and used for analysis. To analyze
the data a combination of descriptive (table, percentage, mean and standard deviation) and
Inferential data analysis such as multiple linear regression and correlation were used. Multiple
Regression analysis was performed to investigate the effect of each explanatory variable on life
insurance purchase. Accordingly the result showed that among the demographic factors gender
and educational status were significantly determine life insurance policy purchase, but age and
religion did not. Monthly income level, awareness, attitude, and premium were found to be
significant determinants of life insurance purchase. Among the eight determinant factors, income
level takes the highest fraction in influencing the purchasing for life insurance policy followed by
educational status, awareness, attitude, gender and premium in that order. It is recommend that
the Ethiopian insurance corporation should further enhance public‘s awareness and financial
literacy by using different approaches since the sector have a great importance for the
purchasers.
