Financial Literacy and Insurance Uptake Intention among Rural Area Families

Claire Anne D. Apiag, Michael P. Aquino, Nicole Shaine B. Cadungog, Mary Joanne Jurika A. Fuentes, Althea Reann F. Gorgonio, Xenia Flor D. Llamo, Ariana Jemar B. Manalo, Davie Marie Grace U. Orillo, Efrel Rose D. Tampus and Nashria Xam C. Zacaria
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Claire Anne D. Apiag: Cor Jesu College
Michael P. Aquino: Cor Jesu College
Nicole Shaine B. Cadungog: Cor Jesu College
Mary Joanne Jurika A. Fuentes: Cor Jesu College
Althea Reann F. Gorgonio: Cor Jesu College
Xenia Flor D. Llamo: Cor Jesu College
Ariana Jemar B. Manalo: Cor Jesu College
Davie Marie Grace U. Orillo: Cor Jesu College
Efrel Rose D. Tampus: Cor Jesu College
Nashria Xam C. Zacaria: Cor Jesu College

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 4, 1636-1661

Abstract: Financial literacy plays a crucial role in decisions inclined to financial security. However, in rural areas, low financial literacy levels contribute to limited insurance adoption, leaving families vulnerable to unforeseen financial risks. This study examined the relationship between financial literacy indicators and insurance uptake intention among 10 identified barangays of rural families in Digos City. Using a quantitative correlational research design, data were gathered from 100 respondents through surveys and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings indicated that rural families exhibit a moderate level of financial literacy, with financial goals ranking highest and financial experience lowest among its indicators. Insurance uptake intention is also found to be at a moderate level, suggesting awareness but hesitancy in acquiring policies. Furthermore, insurance uptake intention is moderate, indicating awareness of its benefits but hesitation in acquiring policies. Moreover, statistical analysis revealed a significant positive relationship between financial literacy and insurance uptake intention, with financial skills and decision-making behavior emerging as significant predictors of insurance adoption. The results emphasize the need for targeted financial education programs and community-based interventions to enhance financial literacy and promote informed insurance decisions among rural households. Strengthening these aspects can help bridge the gap between financial awareness and action, fostering financial resilience in rural communities.

Date: 2025
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