The impact of Covid-19 pandemic on Life-Insurance demand

The Covid-19 pandemic is posing unprecedented challenges and enormous difficulties to worldwide economy and Vietnam is not an exceptional case even at the beginning period of the Covid-19 pandemic, Vietnam was recorded as one of the most effective countries in preventing the spread of the Covid-19 virus. Facing the impact of Covid-19, two important questions are proposed: (1) Does Covid-19 impact on saving behavior? (2) As a consequence, does this action have an impact on Life-Insurance decisions? With the sample including 100 respondents from Vietnam, this study suggests that: (i) 43% of the respondents have the same savings or increase saving during the Covid-19 period, 60% of them decide to buy the life insurance after Covid-19 occurs. However, only 27% of them decide to buy life insurance because of being afraid of Covid-19. (ii) For the rest of the respondents who have the decreased saving, surprisingly, 100% of the respondents decide to buy the life insurance, however, only 28% of them decide because of Covid-19, (iii) Aside from personal saving behavior, the study also provides insight data regarding the factors that impact the Life-insurance decision of the respondents: (a) Reputation of the Insurance company is the most significant factor, (b) 40% of the respondents want to buy life insurance, however, the low income is the barrier(c), 70% of the respondents believe that buying life-insurance will help reduce medical expense and protect their family from financial risk.