Emotional Finance: Financial Anxiety among College Teachers in

Ernakulam District with Special Reference to Life Insurance

Mary Sruthy Melbin
Assistant Professor of Commerce
St. Teresa’s College, Ernakulam, Kerala, India – 682011
Dr. Vineeth. K. M.
Assistant Professor of Commerce
Maharaja’s College, Ernakulam, Kerala, India – 682011

ABSTRACT
Financial Anxiety is a phenomenon among most of the middle and lower income households.
But it can grow big even in a higher income group if they are not properly covered by
insurance against unforeseen risks. College teachers are perceived to have reasonable pay
scales and better financial literacy. This paper aims to assess the life insurance penetration
and financial anxiety among college teachers in Ernakulam district. It was found that serious
disparity among the regular stream and self financing stream pay scales poses deep issues in
financial anxiety and financial health at large. The life insurance penetration even at the
higher income groups is not found to be comprehensive considering the Human Life Value
metrics of life insurance. This alarm for more awareness drives to educate the public at large.
Key Words: Emotional Finance, Financial Anxiety, Life Insurance Penetration

Introduction
There is a scarcity of information concerning the emotional aspects of financial management.
(Shapiro and Burchell, 2012) The concept of financial anxiety is a feature of civilised humans
as they have thoughts about future events and contingencies along with present commitments.
The Financial Anxiety Scales (FAS) measure an anxious disposition toward cognitive
engagement with one’s personal finances. College teachers when attributed as having better
financial pay and literacy are not always up to the expectations when it comes to financial
decision making. This attracts research and policy interest.
Statement of the Problem
Financial Anxiety is a phenomenon among most of the middle and lower income households.
But it can grow big even in a higher income group if they are not properly covered by
insurance against unforeseen risks. College teachers are perceived to have reasonable pay
scales and better financial literacy. This paper aims to assess the life insurance penetration
and financial anxiety among college teachers in Ernakulam district.
Objectives of the Study
 To study the Life Insurance Penetration among college teachers
 To study the association between demographic factors and Life Insurance Penetration
among college teachers
 To study the extent of Life Insurance Cover among college teachers
 To study the association between demographic factors and Life Insurance Cover
among college teachers
 To study the level of Financial Anxiety among college teachers
 To study the association between demographic factors and level of Financial Anxiety
among college teachers

Methodology
The present study is empirical in nature employing primary data collected from college
teachers from Ernakulam district. Since, the population was not finitely measured, structured
sampling was not possible and random route was adopted. Final sample size of 50 was fixed
with equal representation from Government/Aided Sector and Self Financing sector.
Along with the self generated questions, the 6 item form of Spielberger State-Trait Anxiety
Inventory (STAI) developed by Theresa M. Marteau and Hilary Bekker (1992) was used to
measure the Financial Anxiety. Along with simple percentages, Chi Square test was also used
to make inferences.

Results
Analysis of the collected information produced the following results:
Table 1 Profile of the Sample
Variable Category Count %
Male 12 24.0
Gender Female 38 76.0
Total 50 100.0
Below 25 5 10.0
26 to 40 39 78.0
Age
41 to 60 6 12.0
Total 50 100.0
Government / Aided 25 50.0
Sector Self Financing 25 50.0
Total 50 100.0
Region Rural 14 28.0
Urban 36 72.0
 Total 50 100.0
Upto Rs 20000 10 20.0
Rs 20001 to Rs 50000 21 42.0
Monthly Income Rs 50001 to Rs 1 Lakh 17 34.0
Above Rs 1 Lakh 2 4.0
Total 50 100.0
Source: Survey Data

Table 2
Life Insurance Penetration among College Teachers
Life Insurance Policy Count %
Never 4 8.0
Not at Present, but Wish to Have 11 22.0
Yes, having 35 70.0
Total 50 100.0
Source: Survey Data
Majority of the college teachers are already having a life insurance policy. Still is is alarming
that 30 % are yet to take a life insurance policy.
Table 3
Association between Socio Economic Factors and
Life Insurance Penetration among College Teachers
Factor/Variable P Value# Inference
Gender 0.518 Not Significant
Age 0.001** Highly Significant
Sector 0.001** Highly Significant
Region 0.589 Not Significant
Monthly Income < 0.001** Highly Significant
Source: Survey Data
# Chi Square Test
Gender and Region didn’t have any association with Life Insurance Penetration among
college teachers. Younger age groups are yet to opt for Life Insurance. Life Insurance
Penetration is significantly low in Self Financing college teachers. Teachers in the lower
income category are not able to opt for life insurance coverage.
Table 4
Life Insurance Cover among College Teachers
Life Insurance Cover Count %
No Policy Taken 15 30.0
Upto Rs 2 Lakhs 2 4.0
Rs 2 Lakhs to Rs 5 Lakhs 11 22.0
Rs 5 Lakhs to Rs 10 Lakhs 19 38.0
Above Rs 10 Lakhs 3 6.0
Total 50 100.0
Source: Survey Data
Most of the respondents are having a life insurance cover of Rs 2 to Rs 10 Lakhs.
 Table 5
Association between Socio Economic Factors and
Life Insurance Cover among College Teachers
Factor/Variable P Value# Inference
Gender 0.912 Not Significant
Age 0.005** Highly Significant
Sector 0.006** Highly Significant
Region 0.916 Not Significant
Monthly Income 0.001** Highly Significant
Source: Survey Data
# Chi Square Test
Gender and Region didn’t have any association with Life Insurance Cover among college
teachers. Younger age groups are yet to opt for Life Insurance. Life Insurance Cover is
significantly low in Self Financing college teachers. Teachers in the lower income category
are not able to opt for life insurance coverage. But it is also interesting to find that even
teachers with higher income have an insurance coverage upto Rs 10 Lakhs. This alarms the
principle of HLV in calculating Life Insurance Coverage. Serious education needs to be made
in this aspect.
Table 6
Level of Financial Anxiety among College Teachers w.r.t. Life Insurance
Level Count % P Value# Inference
Low 34 68.0
Moderate 14 28.0 Highly
< 0.001**
High 2 4.0 Significant
Total 50 100.0
Source: Survey Data
# Chi Square Test
Most of the respondents are having a low level of financial anxiety. This has to be separately
analysed for different categorical variables.

Table 7
Association between Socio Economic Factors and
Level of Financial Anxiety among College Teachers
Factor/Variable P Value# Inference
Gender 0.003** Significant
Age 0.562 Highly Significant
Sector 0.040* Significant
Region < 0.001** Not Significant
Monthly Income 0.310 Not Significant
Source: Survey Data
# Chi Square Test
Male respondents and age group from 26 to 40 possess a significantly higher financial
anxiety as compared to others. Self financing college teachers showed a significantly higher
financial anxiety. Teachers from rural region also expressed a significantly higher financial
anxiety than others.

Discussion
The financial anxiety among college teachers at large was found to be low and moderate. It
was also found that serious disparity among the regular stream and self financing stream pay
scales poses deep issues in financial anxiety and financial health at large. The life insurance
penetration even at the higher income groups is not found to be comprehensive considering
the Human Life Value metrics of life insurance. This alarm for more awareness drives to
educate the public at large.

References
Marteau, T., & Bekker, H. (1992). The development of a six-item short-form of the state scale
of the Spielberger State-Trait Anxiety Inventory (STAI). British Journal Of Clinical
Psychology, 31, 301-306.
Shapiro, G., & Burchell, B. (2012). Measuring Financial Anxiety. Journal Of Neuroscience,
Psychology, And Economics, 5(2), 92-103.