Death benefits versus annuitization: What motivates individuals to choose?

This study analyzes determinants influencing annuities vs. endowment insurance choise in the Egyptian insurance market with particular consideration for COVID-19 pandemic effects. Through an all-encompassing list of 32,774 cases sampled randomly between the years 2008-2024, regression analysis analyzed the effect of the variables gender, residence province, payment regularity, age insured, and term on demand for both policies. Our results reveal significantly larger demand for annuities over the demand for the policies for the duration of the study, with annuities registering consistently larger mean sum insured values registering preference for long-term financial horizons with income security. COVID-19 pandemic registered overwhelming rise in annuities demand (mean difference = -117,342) compared with modest increments in endowment insurance demand (mean difference = -12,352.5). Gender effect varied with type of policies with women registering lower annuity pay but larger endowment pay relative to men. Provincial variability and regularity in pay significantly influenced demand for the policies. Our findings substantiate that insurance policy choices are largely dictated by demographic, geographic, and financial variables with COVID-19 acting as an accelerator for risk awareness for income insecurity. Insurers need to develop focused marketing strategies directly referent on the dimensions of the demographics with the results suggesting potential for growth for annuity policies for emerging marketplaces where risk for income insecurity is highest.