Affordable Life Insurance Spending Among B40 Income Group in Malaysia: A Case Study

Noraini Manan, Nurhasniza Idham Abu Hasan and Nur Faezah Jamal
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Noraini Manan: Center for Actuarial Sciences Studies, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia
Nurhasniza Idham Abu Hasan: Department of Statistics, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400 Tapah Road, Perak, Malaysia
Nur Faezah Jamal: Department of Statistics, Faculty of Computer & Mathematical Sciences, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400 Tapah Road, Perak, Malaysia

International Journal of Research and Scientific Innovation, 2021, vol. 8, issue 10, 22-25

Abstract: Life insurance is critical in providing coverage and protection against the risk of a person’s death and total permanent disability. However, only a small number of Malaysians own life insurance and a few of them are from the B40 group. This paper examines the consumption of Life Insurance and Takaful policies for the B40 group in Malaysia. The secondary data were obtained from 15 Takaful operators in Malaysia from the year 2014-2019. There are six factors namely, (1) Ethnicity, (2) Monthly Income, (3) Gender, (4) Age, (5) Occupation, and (6) Highest level of education that use to predict the affordance amount of insurance spending among B40 group in Malaysia. By using Multiple Linear Regression (MLR) indicates that ethnicity, monthly income, and education level were statistically significant to predict the affordance amount of insurance spending among B40 group in Malaysia. Based on their monthly income, the average affordable amounts spending among B40 group were RM 43.48±84.38. Therefore, in promoting financial services that are accessible to all Malaysian especially B4 group, it was suggested to provide an affordable amount of premium for B40 group.

Date: 2021
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