Family Background

Family background is one of the important aspects that we can relate it with
awareness of student towards having life insurance policy. Family background is related with
family size, family income, and also family education. According to Namasivayam (2006),
identified the socioeconomic factors that are responsible for having of life insurance policies
and the preference of the policyholders towards various types of policies of Life Insurance
Company. From the analysis, the study concluded that factors such as age, educational level
and sex of the policyholders are insignificant, but income level, occupation and family size
are significant factors (Gautam, 2013).
The degree and diploma holders are of 30% and they form majority. Household
income came as a important variable to influence the attitude towards banking services in the
study held among Indian people. From this high income group have show higher in mean
attitude score of high income group than the low income and middle income group
(Gautam,2013).
From this it can be explained by the fact that high income group require more
facilities from banks to deal with multiple money related issues, whereas, in India middle
income group give more attention on their daily expenses and other financial needs. The low
income households are also too much uncertain about their future, but their financial problem
and limitations generally do not allow them to go for banking services such as in having life
insurance policy for their family (Gautam, 2013).
Life insurance allows individual person and also married have life insurance and that
life insurance is good couples and families can share the uncertain type of risk of premature
death value and a good form of long-term savings and to ease the financial burden from the
premature death.

The education level of household head is conjectured to if the household is the

primary source of income affect decisions to purchase life insurance policies. Claim that
client need to display great level of the expectation is that the more educated the head of risk
aversion to justify insurance against normal household, the greater likelihood or consider the
need for risk. Number of children in the family or family size is need of life insurance
protections. From this we can see that when there is bigger size of family the risk on have
unpredictable problem is higher, so that the life insurance become needed. This result is
collaborated by significant variable in purchase of life insurance policies (Annamalah, 2013).
Family background could influence students awareness towards having life insurance
policy. Life insurance purchases of the parents are important because offspring face income
uncertainty arising from the parent's uncertain lifetime (Annamalah, 2013). When there is a
married couple it will lead to to inseceru feeling about their future children. From this we will
know that when a family have good income then have live insurance family, so that it will
shape the awareness of the student towards the life insurance policy.
Educated people, especially third life insurance is about providing the insurers
family. Education level are more aware of the need for insurance purchasing life insurance is
an important part of good policies compared to less educated people (Annamalah, 2013) .
This is show that when there is educateds background of family, their family will have high
level of awareness towards the importance of life insurance policy.

HYPOTHESIS
The first independent variable is family background towards the awareness of
having life insurance policy. Family background such as household income came as a
important variable to lead the attitude towards banking services in the study conducted
among Indian people (Gautam, 2013).
HN1: There is a positive significant between family background and student awareness in
having life insurance policy.
HA1: There is a negative significant between family background and student awareness in
having life insurance policy.
Conceptual Framework
In order to investigate and understand better the independent variable of family
background and knowledge towards the awareness of student in having life insurance policy,
this conceptual framework provides an understanding ways on whether independent variebles
have significant towards student awareness in having life insurance policy. The independenet
variables are family background and knowledge. Awareness of the student is known as the
dependent variables. The conceptual frameworkfor the study is shown as follows:

Family
Backgrou
nd
Awareness of
student
towards life
insurance
policy

Knowledg
e