The influence of risk perception on the intention to avail of life insurance among BPO employees in Makati City: Basis for a financial security program

ABSTRACT: This study examines the influence of risk perception on the intention to avail of life insurance among BPO employees in Makati City, Philippines, aiming to inform the development of a financial security program. Utilizing descriptive-correlational research design and quantitative research methods, the study investigated the relationships between perceived vulnerability to financial risk, perceived severity of financial risk, and self-efficacy in handling financial risk, as well as the extent of intention to avail of life insurance based on benefits, payment options, and trust in life insurance providers. Quota sampling was employed to select 100 middle-income BPO employees working on Ayala Avenue, Makati City. Findings reveal a significant awareness of financial risks, particularly concerning income dependency, and a strong inclination towards life insurance adoption driven by family security and affordability. Correlation analysis indicates that self-efficacy in handling financial risk and perceived vulnerability to financial risk positively predict the intention to avail life insurance. However, the perceived severity of financial risk demonstrates a less influential relationship. The study concludes that while BPO employees in Makati City are aware of potential financial treats, their strong belief in their financial management abilities and concern for family vulnerability serve as significant motivators for seeking life insurance. These insights underscore the need for a tailored financial security program that builds upon employees self-efficacy and addresses their specific concerns, offering valuable implications for insurance providers and policymakers seeking to enhance financial resilience within this significant workforce.

Filipiniana