This study investigates the determinants of consumer demand for life insurance. The literature suggests a behavior gap exists between the economic need for life insurance and the low propensity of consumer demand for insurance products. Researchers have examined potential factors for this life insurance demand “puzzle” with possible explanatory factors such as individual preferences, literacy level, and financial constraints. Although, many factors have been studied, the life insurance demand “puzzle” persists. This study contributes to the literature by investigating the association between personality traits and life insurance ownership as a possible explanation for life insurance consumer demand. Financial planners and life insurance professionals could benefit from understanding their client’s personality traits to tailor recommendations in a way that could increase the efficiency of the client's information processing, and thus potentially influence a positive life insurance purchase decision.
