| Abstract: | The general objective of this study is to determine the impact of income, awareness, advertisment and religion on the demand of life insurance in Ethiopia and provide appropriate proposed solutions to the insurance companies. The approach for this study is both quantitative and qualitative research. This study mainly employs quantitative research approach by comprising descriptive design on the determinants of life insurance demand in Ethiopia. Therefore, the study is also an explanatory type research. The researcher used convenience sampling technique from non-probability sampleing techniques. Sample size is 483 from infinite population, but the returned questionnaire was 273. The data collection tools used to obtain the desired information from primary sources is a questionnaire. All of the 23 questions are designed using a five-point likert scale in which respondents are required to give their response in selecting either strongly disagree, disagree, neutral, agree, or strongly agree. Descriptive and inferential statistics were used at the first stage of the analysis by using tabulation and charts. In general, the overall demand for life insurance expressesd as dependents do not prefer life insurance for financial security, bequeath funds to dependents & provide income during retirement. as a result of this, overall points for the life insurance demand, clearly shows that there is extremely low level of demand for life insurance. moreover, the attitude of people toward life insurance is at embryonic stage due to different factors. To address the major objective of this study, the researcher provided the possible solutions as relevant recommendation points, insurance companies should create awareness through various promotional efforts like aggressive promotion, public relation, promotional campaign and corporate social responsibilities and also the price of life insurance should consider the purchasing power of the society. So, the insurance companies are advised to set reasonable and fair price for life insurance scheme. |
