Theoretical Insights into Insurance Literacy and Its Role in Health Insurance Purchase Decisions

Abstract: The theoretical foundations of insurance literacy and its important influence on decisions to obtain health insurance are examined in this conceptual work. One of the most important factors influencing customer behaviour in the insurance market is insurance literacy, which includes knowledge, comprehension, and skills pertaining to insurance goods and services. This research attempts to clarify how insurance literacy influences people's attitudes, beliefs, and decision-making processes surrounding health insurance by looking at a variety of theoretical frameworks and including pertinent literature. It also emphasises how improving insurance literacy can benefit customers, insurers, and legislators in order to support better health insurance coverage and general financial well-being.