What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis

Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha

Page No: 36-51

DOI: 10.86493/VEREDAS.2026/V16I2/05

Funeral insurance is a relatively unexplored area of entrepreneurship and small business ventures in India, which has witnessed increased funeral expenses, urbanization, and the deterioration of traditional familial support structures. This paper investigates the strategic and motivational drivers of consumer acceptance of funeral insurance and its applicability as a viable business venture for insurance companies and entrepreneurs. Based on survey research among 455 respondents in urban and semi-urban areas of India, Exploratory and Confirmatory Factor Analysis and Structural Equation Modeling (using AMOS/SmartPLS) are employed on a framework of seven constructs. The findings of the measurement model establish high reliability of the scales with Cronbach’s Alpha values ranging from 0.79 to 0.88. The findings suggest that trust, simplicity of premiums, and awareness are key drivers of purchase intention, while cultural aversion related to funeral rituals is a dissuading factor. The findings also suggest that distribution channels such as online and community distribution are crucial in improving awareness. The structural model explains 62% of the total variance in purchase intention.

Citations

APA: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha (2026). What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis. DOI: 10.86493/VEREDAS.2026/V16I2/05

AMA: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha. What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis. 2026. DOI: 10.86493/VEREDAS.2026/V16I2/05

Chicago: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha. "What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis." Published 2026. DOI: 10.86493/VEREDAS.2026/V16I2/05

IEEE: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha, "What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis," 2026, DOI: 10.86493/VEREDAS.2026/V16I2/05

ISNAD: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha. "What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis." DOI: 10.86493/VEREDAS.2026/V16I2/05

MLA: Shivaprasad G, Gayathri R, Ravindra Babu S, Chaya Bagrecha. "What Drives Funeral Insurance Demand in India? A Behavioral and Structural Equation Analysis." 2026, DOI: 10.86493/VEREDAS.2026/V16I2/05