Customers Preference for Life Insurance: A Conjoint Analysis

Abstract

This study investigated consumer preferences for life insurance packages, focusing on six factors: accidental death benefits, critical illness coverage, hospital income provision, mobile app feature, monthly premium payments, and natural calamity. Data were collected from 100 respondents who ranked 16 combinations of attributes using conjoint analysis. The results showed that customers preferred a life insurance package that covers high blood, diabetes, and heart disease for ₱350.00 monthly premium payments, with ₱1,000,000.00 accidental death coverage, with enhanced mobile app features for natural calamities of ₱50,000.00 and ₱1,500.00 daily hospitalization benefit. Monthly premium payments emerged as the most influential factor, with affordability being highly valued. Recommendations for life insurance companies include offering life insurance packages that cover high blood pressure, diabetes, and heart disease for a monthly premium of ₱950.00. The packages can include ₱1,000,000.00 in accidental death coverage, enhanced mobile app features, ₱50,000 benefits for natural calamities, and ₱1,000.00 for hospitalization. Life insurance companies can optimize costs to keep prices low, utilize predictive models to inform strategies, and focus on convenience features to align with consumer preferences and boost satisfaction. This study offers insights for better aligning life insurance packages with customer expectations.