Financial Literacy, Financial Behavior, and Life Insurance Investment Decisions: Evidence from Individual Investors

In a financial system that is getting progressively more competitive, financial literacy has emerged as a major factor affecting the way people make financial decisions. This study aims to examine the effect of financial literacy on people's financial behavior and the way these two factors affect people's life insurance investment decisions. The main aim of this study is to find out whether financial behavior acts as a mediating factor between financial behavior and people's life insurance investment decisions, as well as whether financial literacy has a direct effect on people's life insurance investment decisions. This study will use a structured questionnaire to gather primary data. The study will use a quantitative research method. The structured questionnaire will be administered to a sample population of 159 people. Various statistical tools will be used to analyze the relationship between financial literacy, financial behavior, and people's life insurance investment decisions. The results obtained from this study revealed that people's financial behavior improves greatly with financial literacy. People with high financial literacy are more likely to engage in responsible financial practices such as saving money on a regular basis, planning investments properly, and assessing financial risks before making a decision. The results also demonstrate that investment decisions in life insurance are significantly influenced by financial behavior. The results also indicate the impact of financial behavior on the investment decisions related to life insurance. Moreover, financial literacy, through its effect on financial behavior, affects these decisions both directly and indirectly. This study highlights the importance of financial literacy to ensure the right investment decisions related to life insurance products and the efficient management of money.