Impact of Risk Perception and Emotional Influence on Gen Z's Decision-Making in Life Insurance Policy Purchasing Intent.

This study investigates the impact of emotional intelligence and risk perception on Generation Z’s decision-making in purchasing life insurance policies, specifically within the Indian context. Gen Z, being digitally savvy and emotionally aware, evaluates financial products not just through logic but also through emotional and psychological factors. The research addresses a gap in behavioral finance by focusing on how emotional influence and subjective financial knowledge shape insurance attitudes and purchase intentions among younger consumers. Using a quantitative approach, data were collected from 299 Gen Z respondents via online surveys and analyzed using SmartPLS. The study examined relationships between Emotional Intelligence (EI), Risk Perception (RP), Attitude Toward Insurance (ATI), and Purchase Intention (PI). Results revealed that EI significantly affects RP and ATI, while RP positively influences ATI, which in turn drives PI. Emotional Intelligence indirectly influences purchase intention through both RP and ATI, highlighting the mediating roles of perception and attitude. The findings suggest that Gen Z’s insurance choices are driven by emotional and perceptual considerations, not solely rational thought. Insurers should design emotionally intelligent, personalized strategies to better connect with this demographic. This research contributes to a deeper understanding of behavioral finance and supports the development of inclusive financial products for emerging markets like India.