Financial Literacy - A Determinant of Investment in Health Insurance

  • Rukmini Murugesan Research Scholar, Madurai Kamaraj University, Madurai, Tamil Nadu, India https://orcid.org/0000-0001-7891-9939
  • V Manohar Associate Professor, Department of Commerce, VHNSN College (Autonomous), Virudhunagar, Tamil Nadu, India
Keywords: Financial literacy, Financial inclusion, Financial stress, Economy, Health, Wellness and Insurance

Abstract

The financial set-up of a rustic plays a key role in economic development. Since independence Asian nation leaders area unit is going to eradicate impoverishment and switch India into a spirited, self –reliant global economy and embedded financial literacy needs in every citizen’s life. India is historically a rustic of avid savers. Indians are suffering from financial stress like under insurance, debt trap, insufficient retirement fund, and low return on investment due to weak financial literacy, which shows an impact on health and wellness. For financial inclusion and inclusive growth: Financial literacy and financial inclusion are twin pillars where fiscal inclusion act as the supply side of proving financial services and financial literacy act as demand facet creating public familiar that what they must obtain. The literature confirms that there is a strong link between financial literacy, the use of financial services, and consumer welfare. Life-insurance and pension funds, especially in developing societies, in contrast to that of short-term bank loans, long-term funding to provide important contributions to the country’s economy. These conditions are that the presence of a good insurance system to fulfill all of the expectations, and create a competitive insurance market, citizens-rights and protect the interests, increase the confidence in their system. The creation of welfare awareness and demand will solely be achieved with a healthy legal infrastructure. 

Published
2020-07-01
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