THE INFLUENCE OF PERCEIVED RISK, SOCIAL INFLUENCE, AND KNOWLEDGE ON INTENTION TO SUBSCRIBE TO LIFE INSURANCE FOR LIFE INSURANCE

Abstract

The use of life insurance is one of the most important parts of maintaining life. Every human being will experience death, so some individuals have the idea of avoiding the risk of loss by having life insurance. There are several misconceptions about the concept of life insurance due to a lack of understanding among individuals. This creates gaps and issues identified in this research. In this study, the variables used for identification are Knowledge, Perceived Risk, and Social Influence. Therefore, the main objective is to analyze the influence between Knowledge, Perceived Risk, and Social Influence on Intention to Subscribe to Life Insurance. The theory used in this study is the theory of planned behavior proposed by Ajzen. The method used in this study is a quantitative approach using a survey. The researcher distributed the survey to 100 sample of respondents using purposive sampling. The data analysis technique used is a structural equation model using the PLS application version 3.2.9. Knowledge (β=.237, p=.022), Perceived Risk (β=.238, p=.007), and Social Influence (β=.249, p=.011) are positively associated with Intention to Subscribe to Life Insurance. The model explains R2=.731 of the variance in intention and shows predictive relevance Q2=.492. This study contributes to a better understanding of increasing Intention to Subscribe to Life Insurance in the life insurance sector. As for practical, subjective norms like family, peers and professionals need to raise intention from increasing knowledge and addressing risk concerns.