Financial Literacy and Insurance Uptake Intention among Rural Area Families

Financial literacy plays a crucial role in decisions inclined to financial security. However, in rural areas, low financial literacy levels contribute to limited insurance adoption, leaving families vulnerable to unforeseen financial risks. This study examined the relationship between financial literacy indicators and insurance uptake intention among 10 identified barangays of rural families in Digos City. Using a quantitative correlational research design, data were gathered from 100 respondents through surveys and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings indicated that rural families exhibit a moderate level of financial literacy, with financial goals ranking highest and financial experience lowest among its indicators. Insurance uptake intention is also found to be at a moderate level, suggesting awareness but hesitancy in acquiring policies. Furthermore, insurance uptake intention is moderate, indicating awareness of its benefits but hesitation in acquiring policies. Moreover, statistical analysis revealed a significant positive relationship between financial literacy and insurance uptake intention, with financial skills and decision-making behavior emerging as significant predictors of insurance adoption. The results emphasize the need for targeted financial education programs and community-based interventions to enhance financial literacy and promote informed insurance decisions among rural households. Strengthening these aspects can help bridge the gap between financial awareness and action, fostering financial resilience in rural communities.