Perception of People regarding Term Insurance as a Financial Security Tool

Abstract

Exploration of the perception of individuals regarding Term Insurance (TI) as a financial
security tool is something that could be undertaken. The TI is a sort of assurance for life that
offers protection for a predetermined amount of time, usually between 10 and 30 years. If the
insured person passes away within the insurance term, it provides annuity proceedings to the
beneficiary of the policyholder. However, despite its potential benefits, TI remains relatively
less understood and underutilized compared to other financial instruments. Furthermore,
people often associate life insurance with negative emotions such as morbidity and mortality,
leading to aversion or reluctance to consider TI. Understanding the perception of people
regarding TI as a FS tool is crucial for policymakers, insurance providers, and financial
advisors. By addressing the underlying factors that influence individuals' perceptions, the
adoption and utilization of TI can be enhanced, leading to improved FS and protection for
individuals and their families.