This study examines the impact of behavioural biases and demographic characteristics on life insurance purchase intentions. The research highlights how cognitive factors such as overconfidence, loss aversion, social norms, and hyperbolic discounting influence financial decision-making and how these effects are moderated by age, gender, and education. A quantitative research design was employed using survey data from 509 urban respondents, especially those from lower income group or unorganized sector. Hierarchical multiple regression analysis was applied to assess the direct effects of behavioural biases on life insurance purchase intentions and the moderating role of demographic variables. The study leverages prospect theory and behavioural economics to interpret consumer decision-making patterns. The findings indicate that overconfidence negatively impacts life insurance purchase intention, while loss aversion and social norms positively influence it. Hyperbolic discounting shows a marginal negative effect. Additionally, demographic factors moderate these relationships, with higher education mitigating overconfidence, age reducing its negative impact, and social norms influencing women’s purchase intentions more significantly than men’s. Findings suggest that insurers should develop targeted financial education programs to mitigate overconfidence and enhance consumer awareness. Marketing strategies can leverage social norms to improve insurance adoption, particularly among women. Customized insurance products and incentives addressing behavioural biases may enhance policy uptake.