Abstract:
Life insurance is an important aspect of the social-economic development of the country. Despite
its importance the consumption of life insurance in Ethiopia is very low compared to other
countries. The objective of this study was to examine factors affecting consumers’ attitude
towards purchase of life insurance policy in Case of ten Ethiopian insurance industries in Addis
Ababa. Based on the literatures reviewed religion Cultural beliefs, education and income level,
social security and insurance awareness were identified. The study was employed both
descriptive and explanatory research design. The population of the study comprises of individual
customers and operational employees ten insurance industries those provide life insurance
service .moreover, the study employed Non probability sampling method specifically
convenience Sampling techniques. Descriptive statistics was used to summarize the respondents’
demographic characteristics. T test and one way ANOVA test were applied to test the mean
difference of the respondents on the demographic variables and linear regression analysis used
to analyze the relationship between predictors and dependent variable with consumers’ attitude
towards purchase of life insurance. Then the primary data collected from the questionnaire was
analyzed using SPSS software version 20 with descriptive statistics and more importantly, a
multiple regression model were adopted on to show the relationship between the variables and
their contribution to Consumers attitudes towards purchasing of Life policy. Finally the
researcher made conclusion except Social security all the independent variables were positive
and significantly effect on the dependent variable.
