Don’t They Know or Don’t They Care?: The Role of Knowledge in Private Disability Insurance Purchase Behavior in Germany

The loss of the ability to work poses substantial financial risks that are often not adequately covered by state benefits. Although private disability insurance (DI) may complement public insurance systems, demand remains comparatively moderate in many countries. Using Germany as an empirical setting, this study examines behavioral factors associated with private DI purchase intentions and purchase behavior. An exploratory sequential mixed methods design is employed. First, semi-structured interviews with financial advisors are conducted to assess the practical relevance of the Theory of Planned Behavior (TPB) and to identify additional salient factors for DI demand emerging from advisory practice. Building on these insights, the study develops a two-layered research model in which TPB serves as a behavioral foundation and qualitative findings inform model extensions. Second, the resulting model is tested using survey data from 323 consumers through partial least squares structural equation modeling (PLS-SEM) and importance-performance map analysis (IPMA). The results confirm the suitability of TPB for explaining private DI demand. Beyond this behavioral baseline, perceived product benefits and risks shape attitudes toward private DI. Furthermore, DI knowledge emerges as an important product-specific dimension of insurance literacy that influences perceived product benefits, perceived product risks, and perceived behavioral control. The study contributes to the literature on insurance demand behavior by integrating DI-specific evaluative and knowledge-related mechanisms into a TPB framework. Furthermore, the findings provide practical implications for improving insurance literacy and supporting informed and needs-appropriate decisions regarding protection against disability-related income loss.