A Study on the Awareness of Importance in Having

Life Insurance Policy Among UiTM Seremban 3 Students.

Chapter 1
Introduction
1.1

Background of the Study

Majority of personal finance and planning book has advocated that insurance policy

has significant part in individual personal financing plan. This can be meant that life
insurance will assist the peoples to save their money and at the same time, it can assure any
of the risks and safety issues that insures may face in their life. Nevertheless, there are many
people are inclined to unwillingly allocating their money in life insurance and they unable to
comprehend the benefits behind it as a personal risk management tool which has been
affirmed by the financial planner and representatives of life insurance.(Shahnaz Mahzan,
Sarah Margaret, 2013). This statement can be proved by a report of Life Insurance
Association of Malaysia (LIAM) whereas only forty-two per cent of the total Malaysian
population is insured. It can be implied that the remaining fifty-eight per cent of the
Malaysian population are not realize that lifes risk may affecting their earning in the future.
In the other word, the comparatively high percentage of uninsured population in
Malaysia might be regarded by two different perceptions. From one perception, the
circumstance that may raise alarm on the susceptibility of dependents of the unexpected death
of breadwinner that might occurs in the future. Meanwhile, the other perception is low
affluences of life insurance acclaimed that there is plenty opportunity for development of the
insurance policy in Malaysia. The life insurance policy industry registered a praiseworthy

evolution testified in 2010 associated nine per cent of the amount in 2009 which is RM 7.53
billion.(Shahnaz Mahdzan, Margaret, 2013).
According to Kolhapur (2012) in this globalization era, insurance has become turn
into an inevitable part in our life. It can be meant by it has the same level of necessity of life
such food, shelter and clothing. This is because it does not only providing financial protection
to the policyholders nonetheless actions as better investment for them. Nonetheless, the
policyholder should not take it as instrument of tax exemption as it can be far-off more vital
rather than enjoying tension free life (Banne, Bhola,2013). The professionals in financial
matters stresses that insurance is undoubtedly the greatest financial tool to capitalize and for
endowment of old age, emergencies and several further likelihood that people might be going
through in the future. This showed that how important life insurance in our life as we could
not predict what may happen in one year, two years or several years later so, we need to be
prepared as much as possibility that we might be faced in the future.
Furthermore, most of people purchasing the insurance in place of instrument to longterm tax in favor saving and investment purposes. Life insurance is rapidly evolving as an
essential instrument to managing money plan for the need of the people. People need the
insurance policy because of the system itself work as basic principle pooling of the risk of
unforeseen cost of the people of falling sick and need to be hospitalized by changing quality
from the larger area of population which based on the same community. (Shakti, 2012).
The greater awareness and increasing demand for better services of insurance can be
happened due to the developed rate of literacy of the citizen, raise in term of earning and fast
spread of the printed and electronic media such as internet, newspapers, television, radio,
magazines and the other medium in the country. The insurance company should has wiser
planning and marketing methodology on how to provide and provide better service in order to
attract attention of the people to be insurers in their insurance policy.

Regardless a lot of researches that has been made by the researchers, people have
lacking understanding of the reason behind the life insurance demand. This issue is explored
in the context of Malaysia; which is the primary purpose in their provision into life insurance
will be examined. Above of all, the influence of saving purposes such as precautionary, life
cycle legacy and wealth accretion on life insurance will be investigated. (Shahnaz Mahdzan,
Sarah Margaret, 2013).
Therefore, students should aware and being exposed about the importance of, life
insurance as a sign of they value their life or something that may happen to them in future.
This is important for them to know how life insurance may give benefit them in future.
Students should aware that life insurance is not only gives assurance for the monetary losses
but it provides the new market and avenues to the society which has been stated on the
previously.
In addition, the information about life insurance is easily accessed by utilizing the
advanced facilities such as internet, media social and any other medium too. Nowadays,
students can also get their life insurance on their own without depending to their parents or
family members to register for them and the premium fees is affordable for them so that it
would not become a reason students did not insured in order to protect personal risk in life.

1.2

Problem Statement

Life is something that has been given to us that we need to appreciate it. As human
being there is full of risks and uncertainties since, we are social human beings, we have our
own responsibilities too to minimize these risks. We cannot prevent an unpredicted event that
will give some uncomfortable condition but there is certain way to safe our treasured ones
from the losses occurs due to deficiency of lives. Life insurance is not only gives assurance
for the monetary losses but it provides the new market and avenues to the society (Sharma,
n.d.).
Family is one of the major factors that will lead to the family to have insurance life
policy. According to Garman and Forgue, when the head of family is dead the family
members are automatically will have financial problem in surviving. This is because the
whole time is only the head of family that earn financial obligations, such as dependants to
support, children to educate, and a mortgage to repay. Life insurance allows individuals and
families to share the risk of premature death of the primary wage earn. From this we can
conclude that, the main reason for the purchase of life insurance policy is to provide financial
security for the family (Shakti, 2012).
Every individual will have different reason to have life insurance policy where people
will buy life insurance as a medium to long-term tax favored savings and investment of
vehicle. Life insurance is fast emerging as an important mechanism to finance the needs of
the people. The need of insurance policy we can see when there is sudden ill from individual
around us or our own self. When the individual is hospitalization and need surgery to precede
life insurance policy will help in covering the cost of hospitalization (Shakti, 2012).

In this global now where world with technology, we could see a lot of gadget like
smart phone and etc. Now with improved literacy, modest rise in incomes, and fast spread of
print and electronic media, there is greater awareness and increasing demand for better
services of insurance. There is growing evidence that the level of insurance spending in India
currently at over 7 per cent of its total GDP and this is considerably higher than that in many
other developing countries. This evidence also suggests that more than three-quarters of this
spending includes private out-of-pocket expenses (Shakti, 2012). According to Roy and
Vishal, there is a vast untapped insurance market in India. According to World Insurance
Report, India accounts for 16% of the world population, but accounts for only 1.68% of the
world life insurance market in 2006. India is also far behind world averages in terms of
insurance penetration, and insurance density (Shakti, 2012).
Malaysia is one of the countries that developing in insurance policy market, many
organizations have established life insurance policy. Example of organization that provides
insurance is Prudential Assurance Malaysia Bhd, Takaful, and Allianz Life Insurance
Malaysia Bhd. The establishment of first takaful operator took place is in year 1985. As in
usual life insurance, growing rate of market penetration is an essential part as the significance
of takaful which defined as the ratio of the number of certificates in force to total population.
In the Malaysian takaful industry, the penetration rate increases from 5.62 per cent in 2005 to
6.45 per cent in 2006 (Redzuan et al. , 2009). ASNB have done a program Seminar 360
which this seminar are encourage every level of society invest in variety of their product
including life insurance protection. One of the levels of their participants is students.
Leading to the above matter, this research is carried out to investigate awareness of
student of UiTM Seremban 3 in the life insurance policy and identify the factor that influence
student for having life insurance policy.

1.3

Question of the Study

1) What is the level on the awareness of importance in having life insurance policy
among FSPPP student of Seremban 3?
2) Is there any relationship between family background and student awareness towards
importance of having life insurance policy?
3) Is there any relationship between knowledge and student awareness towards
importance of having life insurance policy?

1.4

Objective of the Study

1) To examine the level on the awareness of importance in having life insurance policy
among FSPPP student of Seremban 3
2) To identify the relationship between family background and student awareness
towards importance of having life insurance policy
3) To investigate the relationship between knowledge and student awareness towards
importance of having life insurance policy

1.5

The Scope of Study

The scope is study is something that show the limitation of the research done by a

researcher. From this scope of study will tell (Leake, n.d). This research will focus on
awareness towards importance of life insurance policy among student from one faculty oly
which is FSPPP. The totl of repondents that will involve in this tuy is 200 respondents. The
territory is located at UiTM Seremban 3, Negeri Sembilan. The research will be conducted
within 2 semester from September 2014 to June 2015.
1.6

Significant of the Study

The study examines the level of awareness of the importance of having life insurance

policy among UiTM Seremban 3 students. This topic is very crucial matter as a lot of people

might be ignored or thought that life insurance is trivial matters so, they tend to left it aside
rather than think about its benefit for the in the future.
One of the significant of this study is to educate the students and society to have
adequate knowledge regarding by what means important of having life insurance policy in
their life. Life insurance policy is able to cover personal risk that might be faced by the
individual itself. This is because life is full of uncertainties which any possibilities could be
happened. Thus, life insurance will make sure that the person that you love able to carry on a
good quality of life against whichever unanticipated event which is the liability of repayment
does not fall on the bereft family. (Life Insurance Council, n.d.). As students themselves, they
might be exposed to the unforeseen event in term of health issues and safety such as road
accident, renting house far from campus and so much more to being considered which are
important to own life insurance for protecting their life and family.
The next significant is it can build the habit of thrift among student. (Life Insurance
Council, n.d.). This is because life insurance is a long term contract which is demanded the
policyholder to pay a permanent amount of money at a defined periodicity. Thus, it can
educate the students to build the habit of long-term savings for the future. Consistent savings
over a long period certifies that a decent amount is put up to encounter economic
requirements at numerous life phases. Therefore, the students can learn the technique to
manage their own money efficiently instead of spending their money over unnecessary thing
in their life and the worst scenario is they become shopaholics due to the failure of money
planning.
Furthermore, student can plan for life stage needs in their life. Life insurance not only
offers for monetary support in the event of premature death but it also acts as in a long term
investment. Student can plan their financial state effectively to meet their goal in future event

according to their life stage and risk that might face any other time in future. On the other
way, traditional life insurance policies providing traditional endowment plans, offer in-built
guarantees and defined maturity benefits through variety of product selections such as Money
Back, Guaranteed Cash Values, Guaranteed Maturity Values. Thus, it gives the opportunity
for the student to be more prudent in planning and achieve their goal in their life.
Moreover, this study is also considering the growing prevalence of lifestyle. It can be
related to the disease that they might suffer such as heart attack, diabetes, kidney failure and
the other chronic diseases. This is because this chronic disease not only undergone by the
older generation but, it also can be undergone by the younger generation due to the unhealthy
lifestyle. Thus, the need to have life insurance policy cannot be seen as selection but a
necessity for future events. The increasing cost of medical and health care provide strong
support to the need of having insurance policy as protection and security against unexpected
financial obligation if anything happen to the policymakers. (Okunnu, Adeyemi 2008)

1.7

Definition of Term and Concept

Insurance is a contract by which one party undertakes to indemnify another against

loss, damage or liability arising from an unknown or contingent event. According to the
Advanced Learners Dictionary Hornby (2005) Insurance refers to agreement by contract to
pay money especially in case of a misfortune such as illness, death or accident such as life
or car insurance (Ajani, 2013). Insurance is considered as one of the oldest and well known
financial products but there are still many who shy away from it and would not purchase it at
free will. Perhaps this is because insurance is quite a complex product and in the Asian
society, some find it a taboo to talk about unfortunate circumstances such as death, disability
or ill health. However, given life uncertainties, insurance helps to cushion and minimize the
loss that consumers and households incur in the event of unfortunate incidents (Yiing, Yi,
2012).
Life Insurance is a cooperative device which spreads risk of a person over a large
number of people against different types of contingencies such as death of a person due to
accident or sickness etc. It is an arrangement where losses of a few are extended over
several who are exposed to similar risks (Banne, Bhola, 2014). There are three main types
of life insurance policies in actuarial literature (Back, 2000). The first one is whole life
insurance which provides a death benefit for lifetime. Second is term life insurance which
provide a death benefit for a limited number of years and environment life insurance, which
is a term life insurance with a saving component (Okunnu, Adeyemi, 2008). The insurance
sector in Malaysia has shown rapid growth in recent years. However, on comparing with
other Asian countries, the penetration rate of life insurance remains low and there is still a
large untapped life insurance market in Malaysia (Yiing, Yi, 2012).

Chapter 2
Literature Review

2.0

Introduction

This chapter provide a review of the literature on awareness of student towards life insurance
policy and the factors influencing student about how important life insurance in life. Section
2.1 explains awareness of about life insurance policy. Section 2.2 explains factors influencing
student about how important life insurance in the life. Section 2.2.1 will determines family
background of the students influence their awareness toward life insurance policy. Section
2.2.2 discusses about knowledge of the life insurance policy contributing in students
awareness toward life insurance policy. Section 2.3 provides the conceptual framework.
Finally, Section 2.4 is identifies the hypothesis of the study.

2.1

Awareness about life insurance policy

Based on Oxford Dictionaries, awareness can be defined as knowledge or perception

or a situation or fact. Meanwhile, Investopedia has identified that life insurance policy act as
security for countering to the loss of earnings that would effect if the insured passed away.
The named beneficiary receives the proceeds and by this means secured from the financial
impact of the death of the insured. Thus, it can be determined that awareness of student
toward life insurance policy is the knowledge or perception regarding life insurance policy
issues and its benefits from the policy implemented.
According to Kshitij Patukele (2009) has stated that, Individuals who ridicule at
insurance without even thinking about it as it should, must remember that there is no other
thoughtlessness match of that of not pulling out insurance. There is no doubt life insurance
is exceptionally importance in a life of a human, yet people has enough aware about its
requirement. Insurance is not yet on uppermost programme of illiterate and even illiterate or

educated people. Many people have debated that they are above the risk and are not needed to
be protected under insurance protection. Though, they are aware that life that can be
unpredictable and whatever thing might be happen to them at no particular time but, they did
not considering that life insurance can be the exact solution in order to resolve financial
problem when they might have driven into a corner when they cannot afford to pay debt.
The life insurance policy companies should have emerged with the clear and obvious
regarding the detail of the policy (Shakti, 2012). This is because a lot people has ambiguous
and confuse definition about the countless benefits and risks involved in a policy especially
life insurance policy. Therefore, the insurance companies improve a practical life insurance
outline, they should understand how people will perceive the scheme that will be made and
ensure the scheme has been made include the package that is reachable, obtainable,
reasonably priced and suitable to all sections of the society.
Therefore, creating about the awareness about life insurance is crucial to bring them
the benefits of life insurance policy and ensure them to be covered by it. So that people has
more protection and security to ensure they will be prepared anything that may happen in the
future. Furthermore, people should buy insurance of their own accord and not by force by any
party that has higher power upon certain person. For the current research of the awareness has
been deliberated from two angles. For the first are about attitude and knowledge about
necessities of life insurance policy among the respondents in their life and secondly, how the
respondent get their sources about life insurance policy and get into the policy after that.

2.2

Factors influence student about how important life insurance in life

There are several factors that influence students about how important life insurance in their
life. However, we emphasize about the two major factors influencing awareness of students
towards life insurance policy in their life which is knowledge and family background of the
students. The factors influencing awareness of students towards life insurance policy will be
discussed in the following subtopic of this topic.

2.2.1 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), he
has 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
insurances 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 an important variable to influence the attitude towards banking services in
the study held among Indian people. From this high income group have shown 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 becomes 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 insecure 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 educated background of family, their family will have high
level of awareness towards the importance of life insurance policy.

2.2.2 Knowledge of life insurance policy

According to Mustapa A.O, and Oludare T.A (2008), they had found that a lot of the
Nigerian students nevertheless from any of the ethnic groups they have associated with are
very alarmed and aware of the importance of having life insurance policy. It shows that
university students were in point of fact conscious about the danger of living without security
and perceived taking life insurance as one way to address it. The main sources of receiving
information are their parents, family members and life insurance agents. (Okunnu, Adeyami,
2008)
According to G.Raju and S. Mohan (2011) have observed that at the present time the
customers are receiving educated by media and always finding the best product, brand name,
quality and operation support. ( Banne, Bhola, 2014). This indicated that the customers have
aware and knowledge about the necessities of what they really need in their life. Thus, the
researchers have found that awareness has upgraded consumer awareness about the aspects of
relating to life insurance product.
According to Panchnathan et. Al. (2008) found that 43% policyholders are aware
about the policies through advisor or agents. 63% of the policyholders have selected the
billboard and hoardings as suitable media (Shakti, 2012). It can be meant that there is
deviation in the studies of G.Raju and S. Mohan (2011) and Panchnanthan et. al. (2008),
where, the former researchers observed that the media is the most important source of getting
information about life insurance for the customers but, customers would be preferred clear
information about maturity and medical benefits. In contrast, the far ahead found that
insurance advisors or agents and billboard are the suitable media for getting information and
there is no significant relationship between income and customer expectation.
According to K. Uma et.al. (2011), he found that insurance agents
are the most important source of information followed by pamphlets and

bulletins, newspapers, hoardings. The other sources like radio, friends,

and television played very minor role in creating awareness about life
insurance. Meanwhile, Seranmadevi R. et. al. (2011) evaluated investors'
preference on ULIP and bring into being that the respondents came to
know about ULIP mostly through advertisements. The contrast of these
two studies shows that according to K. Uma et.al. (2011) the main source
of information is insurance agent followed by pamphlets and bulletins,
newspapers, hoardings, on the other hand, according to Seranmadevi R.
et. al. (2011) advertisements are the main source for getting information
about life insurance. (Banne, Bhola, 2014)

According to Patil S. J. (2012), he had observed that 97% of the

respondents are familiar with the products of LIC of India and same
proportion of the respondents feel insurance is essential for life'
Comparison of study Patil S. J. on one hand and studies of K. Uma et. al.
(2011) & Seranmadevi R. et. al. (2011) on the other side shows that the
views of these researchers are totally different. Thus, there are
dissimilarities about clarification of the significance of awareness about
life insurance. Therefore, for the current study, awareness has been taken
as both such as sources of getting knowledge about life insurance and
knowledge about need of life insurance.

2.3

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 variables
have significant towards student awareness in having life insurance policy. The independent
variables are family background and knowledge. Awareness of the student is known as the
dependent variables. The conceptual framework for the study is shown as follows:

Family
Background

Awareness of student
towards life insurance
policy

Knowledge

Figure 1 shows conceptual framework

2.4

Hypothesis
The first independent variable is family background towards the awareness of having

life insurance policy. Family background such as household income came as an important
variable to lead the attitude towards banking services in the study conducted among Indian
people (Gautam, 2013).
Ha1:

There is a positive significant between family background and student awareness in

having life insurance policy.

Ho1: There is a negative significant between family background and student awareness in
having life insurance policy.
The second independent variable is knowledge towards the awareness of having life
insurance. K. Uma et.al. (2011) found that insurance agents are the primary source of
information followed by pamphlets and bulletins, newspapers, hoardings. Therefore, for
the current study, awareness has been taken as both such as sources of
getting knowledge about life insurance and knowledge about need of life
insurance.

Ha2:

There is a positive significant between knowledge and student awareness in having

life insurance policy.

Ho2: There is a positive significant between knowledge and student awareness in having
life insurance policy.

CHAPTER 3
Research Methodology

3.0 Introduction
In this chapter, the research methodology explained about how well the study will be carried
out. Section 3.1 discusses on research design, Section 3.2 explains on sample size and Section
3.3 discuss a sampling technique. Section 3.4 discussing on unit of analysis, on the other
hand, Section 3.5 discussing on measurement, Section 3.6 will discuss about data collection
and also Section 3.7 will explain about data analysis which relates to this research.
3.1 Research Design
According to Burns and Grove, a research design as a guideline for conducting a
research with maximum control towards factors that may interfere with the validity of the
findings(Mohamed Hassan Abdullahi, 2013). According to Sekaran, research design
involves a series of rational decision-making choices which related to the decisions regarding
the purpose for the study, location, the type it should conform to type of investigation, the
extent to which it is manipulated and controlled by researcher, and its temporal aspects and
the level of which data will be analyzed (Hazman Shah, 2011). The basic purpose of the
research design according to Kerlinger (1992) is to ensure internal and external validity
(Hazman Shah, 2011).

The type of investigation that is used for this study is correlational study which we
want to highlight the variables associated with the problem. We use this type of research
design is to know the extent of factors that related with the awareness of the student towards
life insurance policy. A correlational research design is the measurement of two or more
factors to determine or estimate how far to the values for the factors are related or change in
an identifiable form (Privitera, 2013). A correlational study is a quantitative method of
research in which you have two or more quantitative variables from the same group of
subjects and to determine if there is a relationship between the two variables which a
similarity between them, not a difference between their means (Waters, n.d.).
According to Sekaran, a study that suitable to use to collect the data is cross sectional
study. It means the data bring together just once, perhaps over a period of days or weeks or
months, to answer a research question and it is also known as one-shot studies (Hazman
Shah, 2011). For this study we can use cross sectional study where we can collect data about
the level of student awareness about life insurance policy. This cross sectional sample will

efficiently tell about some key element of the study (Hazman Shah, 2011).
3.2

Unit of Analysis

Unit analysis is one of the important things in every research. Unit analysis is the subject that
involved who or what the study about which the researcher think it is suitable with the topic
decided. For example in the social sciences which is countries, international alliances,
schools, communities, group of interest, and voters are often the units of analysis in studies of
economic development, war, teaching strategies, social capital, policy outcomes, and vote
choice (Long, n.d.)

In this study, the unit of analysis is based on individual. So that means that the data
that we will gather is from individuals student of Faculty of Administrative Science and
Policy Studies. From this student of FSPPP is our main data source for our study.

3.3

Sample Size

In this study, the researchers has to understand that the importance of selection for the
appropriate respondents in order to manage the effective consequence when determining the
awareness of importance in having life insurance policy among UiTM students. Final year
students of Faculty of Administrative Science and Policy Studies (FSPPP) were selected to be
used as a sample of population in this study. Since the final year students of FSPPP has a total
population of 759 students so, it is advice to use the sample size as proposed by Uma Sekaran
which is 200 students in which she refers to the table by Krejcie and Morgan (1970) that
provides generalized scientific guideline for sample size decision. (Hazman Syah Abdullah,
2011). Besides, these numbers of respondents may simplicity the process of data analysis to
be directed in this study. Thus, these 200 respondents can represent the whole population in
this study.
3.4

Sampling Technique

According to Sekaran (2003), sampling is the process of decide on a adequate number of

elements from the population which makes it easier to take a broad view such as properties or
characteristics to the population elements. (Hazman Syah Abdullah, 2011).
Sampling technique can be regarded as as two which are probability sampling and nonprobability sampling. Probability sampling is a sampling technique where the samples are

collected in a process which all the samples may have the equal chances to be selected in the
population. Meanwhile, non-probability sampling is a sampling technique where the samples
are collected in a process that not all samples have the chances to be selected in the
population.
This study is using convenience sampling as the sampling technique to collect data from the
respondents. This is because the procedure involves the selection of units that are easily
accessible. Convenience sampling can be improved by pre-planned the quantity of the sample
from various population of groups. Thus, the appropriate sample size can be collected for
data collection in this study is convenience sampling.
3.5 Measurement
In this study we will use written questionnaires. A questionnaire is an instrument or
measurement that use by researcher as a way to collect data for their study. Every
questionnaire will have different result that answer by each individual. The questionnaire
given usually will draw out the idea, opinion and fact from researcher target. This is mean,
different type of group will draw out different opinion and fact. In this study, questionnaires
are in two languages which is in Malay and English. The questionnaire divided into three (3)
sections:
Section A:

Demography

Section B:

Family background

Section C:

Knowledge

Table 3.1 Measurement

No

Objectives

Concepts

Measurements

Sources

Question No

To determine

The

A set of question can be

Household income

Section B

the

relationship

developed to determine

came as a significant

significance

between

the significance

variable to influence

relationship

independent

relationship between

the attitude towards

between

variable and

family background and

banking services in

family

dependent

awareness of student

the study conducted

background

variable will

towards life insurance

among Indian people

and

show whether

policy. From this, a set

(Gautam, 2013)

awareness of

there is

of question will require

student

relationship

the respondents to rate

towards life

between the

using the Likert-Scale

insurance

particular

to rate factors and

policy.

variables.

public participation
respectively

12345-

Strongly Disagree
Disagree
Moderate
Agree
Strongly Agree

To determine

The relationship

A set of question can

Nowadays customers

the

between

be developed to

are getting educated

significance

independent

determine the

by media and are

relationship

variable and

significance

always in search the

between

dependent

relationship between

best product, brand

knowledge

variable will

knowledge and

name, quality,

and

show whether

awareness of student

operation and service

awareness of

there is

towards life insurance

support (Raju and

student

relationship

policy. From this, a set

Mohan, 2011).

towards life

between the

of question will require

insurance

particular

the respondents to rate

Section C

policy.

variables.

using the Likert-Scale

to rate factors and
public participation
respectively

12345-

3.6

Strongly Disagree
Disagree
Moderate
Agree
Strongly Agree

Data Collection

The study will be carried out to examine the level of awareness of importance in having life
insurance policy among students. The questionnaire will be used for data collection method is
appropriate and convenience as it does not cost less expensive and easier to establish rapport
and motivate among researchers and respondents. (Hazman Syah Abdullah, 2011).
The questionnaire will be distributed to the final year students of Faculty of Administrative
Science and Policy Studies (FSPPP) which are students that are studying in semester 5 and 6.
The questionnaires are printed in white papers and Multilanguage which is in Malay and
English language. The purpose is to increase understanding of the respondents regarding the
topic that will be provided in the questionnaire. The personal details and answers of
respondents in the questionnaire will be remained confidential because this research is only
meant for academic purposes.

3.7

Data Analysis
After respondents finish answer question it will be a data for researcher. To elaborate

more about the data the researcher can use SPSS. This Software will be used in our study.
The researcher need to key in all the data receive in SPSS so that it can be analyzed
effectively. In our data analysis may have descriptive statistics, correlation and reliability of
the data.
Descriptive statistics are used to explore the data collected. Descriptive statistics will
be useful if we just want to make general observations about the data have been collect, for
example, the number of males and females, the age range and average age or the average
length of residence in a community (Coakes, 2013).
Correlation looks at the relationship between two variables in a linear fashion. A
pearson product-moment correlation coefficient have explain about the relationship between
two continuous variables. A correlation between a continuous and a categorical variable is
called a point-biserial correlation (Coakes, 2013).
Based on the next table, is the analysis that will be used in our research. From it we
know how we will compare, we will know if there is a relationship between measurement and
question we have use.

Table 3.2 Data Analysis Table

No

Objectives

Variables

Measurement

Scale

Statistics

To

identify

frequency

the

Demography:

for

-Gender

between family

-Age

background and the

demographic data
of respondents

1) Significant relationship

awareness of student
towards life insurance
policy.
2) Significant relationship
between knowledge of
student and the
awareness of student
towards life insurance
policy.

Interval

Descriptive
analysis

To determine

To determine

whether question

whether question

used in the

used in the

questionnaire are

questionnaire are

reliable or not and

reliable or not and

the instrument

the instrument

used in this study

used in this study

is suitable.

is suitable.

To determine

Dependents:

Total number of respondent

Interval

Reliability
Analysis

Awareness

of

student

Interval

Correlation

significant

towards life insurance policy

relationship

Awareness of

between family

student towards

background,

life insurance

knowledge and

policy

awareness of
students towards

Independent:

life insurance
policy

Family

Background
Knowledge

Analysis