Insurance Literacy and Life-Insurance Purchase Behaviour: A Cognitive–Affective Conceptual Model

Life insurance is a tool for financial resilience, yet its uptake remains low in many markets. Grounded in the Theory of Planned Behaviour, this paper proposes a conceptual model in which insurance literacy exerts a positive effect on purchase intention, which predicts actual purchase behaviour. This relationship is made more complex and explained through three mediating mechanisms: individuals’ cognitive appraisal of perceived health risk, their affective attachment to dependents, and a rational evaluation of the perceived benefits of life insurance products. The model posits that higher insurance literacy heightens awareness of personal vulnerability, strengthens emotional responsibility toward family members, and improves understanding of the value of life insurance. These cognitive and emotional processes collectively reinforce purchase intention and facilitate behavioural enactment. By moving beyond a simple knowledge–action link, this paper advances a more nuanced explanation of life insurance decision-making, highlighting the intertwined roles of cognition, emotion, and perceived value.