Year: 2026 | Month: May | Volume: 13 | Issue: 5 | Pages: 508-517
DOI: https://doi.org/10.52403/ijrr.20260547
The Mediating Role of Life Insurance in Enhancing Personal Financial Management Effectiveness: A Case Study in Vietnam
Bui Thi Minh Tiep1, Nguyen Thi Thu Trang2
1Hai Phong University, Vietnam
2171, Phan Dang Luu, Kien An, Hai Phong, Vietnam
Corresponding Author: Bui Thi Minh Tiep
ABSTRACT
This study examines the mediating role of life insurance in enhancing the effectiveness of personal financial management. The study employs a qualitative research approach based on literature review, combined with empirical findings derived from secondary data in Vietnam. Based on the theoretical review and qualitative analysis, this study focuses on examining the relationship between life insurance and personal financial management.
Key findings are:
(i) Life insurance acts as an intermediary mechanism that transforms income, financial awareness, and risk conditions into more stable and sustainable financial outcomes. This role is reflected in four dimensions: risk resilience, financial stability, financial discipline, and the achievement of long-term financial goals.
(ii) In Vietnam, life insurance has contributed positively to household financial stability and long-term accumulation. However, its effectiveness remains constrained by low insurance penetration, limited financial literacy, uneven service quality, and declining public trust in the insurance market.
(iii) The study proposes several policy implications to develop the life insurance market and enhance the effectiveness of personal financial management in Vietnam. The findings contribute to extending the perspective of life insurance from a risk management tool to a mechanism that supports financial well-being and sustainable financial outcomes.
Keywords: Life insurance, personal financial management, financial effectiveness, financial well-being, risk management.
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