Explaining consumers' progress through life insurance decision states: The role of personal values and consumer characteristics

Many people have unsuitable life insurance cover or no cover at all. In this study, we survey consumers about their readiness to purchase life insurance. Consumers rate their own “decision state” from “pre-aware” of life insurance to “aware,” “interested” or “capable” of deciding to purchase. We also collect data on factors associated with progress along the path to purchase. We find that personal values partly determine life insurance decision states. Values matter in addition to the needs of dependents, bequest intentions, and financial literacy. Consumers who place more value on benevolence and self-direction are more likely to be aware of life insurance. Our results suggest strategies to promote suitable life insurance cover by targeting factors that help progress through each decision state. Insurance providers could thus prime benevolence and self-direction in advertising and product information.