ECONOMIC AND SOCIAL FACTORS AFFECTING THE PURCHASE OF LIFE INSURANCE AMONG THAI HOUSEHOLDS

Abstract

Life insurance is an important instrument for long-term financial planning and risk management, helping policyholders cope with unforeseen events that may arise in the future. This study aimed to examine the economic and social factors influencing Thai households’ decisions to purchase life insurance. The data were drawn from the 2023 Household Socioeconomic Survey conducted by the National Statistical Office, which reflects contemporary Thai household behavior. A binary logistic regression model was employed to estimate the relationship between the independent variables (household economic and social factors) and the dependent variable, the decision to purchase life insurance (1 = purchase, 0 = non-purchase). Multicollinearity was assessed, and heteroskedasticity-robust standard errors were applied to improve the reliability of the estimates.

The results indicated that households headed by males were significantly less likely to purchase life insurance than those headed by females. Compared with single household heads, those who were married and those who were widowed, divorced, or separated were significantly more likely to purchase life insurance. Household heads with a bachelor’s degree or higher were more likely to purchase life insurance than those with lower educational attainment. In addition, households with children under 15 years of age showed a higher likelihood of purchasing life insurance, whereas households with elderly members aged 60 years and above exhibited a lower likelihood. Moreover, households with higher average monthly income, greater asset values, and higher debt burdens were more likely to purchase life insurance. Finally, households residing in municipal areas were more likely to purchase life insurance than those living outside municipal areas.

Overall, the findings suggest that economic and social factors play a significant role in shaping Thai households’ life insurance purchasing decisions. Increasing awareness of the benefits of life insurance—particularly among low-income households and those with lower educational attainment—may help broaden access to life insurance products. In addition, the government and insurance companies should design products that better match the needs of different population groups to expand coverage and strengthen the long-term financial stability of Thai households.