AN ANALYTICAL STUDY ON INSURANCE AWARENESS AND INVESTMENT BEHAVIOR

Insurance plays a crucial role in financial planning by providing risk protection and promoting long-term financial security. Despite the growing expansion of financial markets and the increasing availability of insurance products, a significant portion of individuals still demonstrate limited awareness regarding insurance as an investment and risk management tool. Lack of financial literacy, misinformation, and inadequate awareness campaigns often lead to suboptimal investment decisions and underutilization of insurance services. The present study aims to examine the level of insurance awareness among individuals and analyse its influence on their investment behavior.

The study employs a quantitative research approach using secondary and survey-based analytical insights to evaluate the relationship between insurance awareness and investment decisions. Statistical tools such as correlation and regression analysis are applied to understand the strength and direction of the relationship between awareness levels and insurance investment behavior. Hypothetical findings suggest that individuals with higher insurance awareness are more likely to adopt diversified investment portfolios and show greater participation in insurance-based financial instruments.

The study contributes to the growing literature on financial literacy and investment decision-making by highlighting the importance of insurance awareness in shaping rational financial behavior. The findings may assist policymakers, financial institutions, and regulators in designing effective financial literacy programs and awareness campaigns to improve insurance penetration and promote informed investment decisions.