Abstract:
Insurance products evolved as a critical instrument for financial protection
during unanticipated economic situations. Despite the low insurance penetration
in Indonesia, the uncertain economic condition created a new problem for
students' educational pursuits. Education insurance emerged as an instrument to
ensure that if there are any financial challenges, it will not impact one's
education journey. Using the combination of the Theory of Planned Behavior
and Signaling Theory, this research aims to study the influence of financial
capability, company reputation, perceived risk, purchase intention, and actual
purchase towards education insurance. Data were collected through purposive
sampling, yielding 407 responses via an online questionnaire. The analysis
conducted with SmartPLS 3, revealed that: (1) financial capability has a
negative relationship with purchase intention; (2) company reputation has a
positive relationship with purchase intention; (3) perceived risk has a positive
relationship with purchase intention; (4) purchase intention has a positive
relationship with actual purchase.
