Children's Condition, Parents' Risk Attitude And Life Insurance Purchase

The implementation of the one-child policy in China has reduced the fertility rate,decreasing the number of children and increasing the sex ratio in the family,which makes it unable for parents to bring up children to provide for their old age.Life insurance can provide parents with old-age security and medical security to make up for the deficiency of parents' old-age security and medical security after their children's number and gender have changed.This paper aims at investigating the influence of the number and sex of children on the purchase of parents' life insurance.In addition,China's life insurance products with investment function have been selling well,which weakens the protection function of life insurance to some extent.By studying the influence of parents' risk attitude on life insurance purchase,we hope to explore parents with which kind of risk attitude are more attractive to the life insurance products with investment function.Moreover,parents' risk attitude is also related to their children's condition.Therefore,there may be a mechanism between children's situation and parents' life insurance purchase.This means children's condition influences parents' life insurance purchase through their risk attitude,that is,there may be a mediation effect.In this paper,the risk aversion level of parents is selected as the mediating variable to study whether such mediation effect exists or not.This paper is divided into the following six parts: the first part is the introduction.The second part introduces the theory of life insurance demand,mediation effect.The third part is variable selection,data sources and descriptive statistics of data.The fourth part uses the Probit and Tobit model to study the influence of children's condition on parents' life insurance holdings and premium expenditure.The fifth part is the analysis of mediation effect.The mediation effect model is used to study whether children's condition affects parents' life insurance purchase through risk attitude.The sixth part is the conclusion and advice.Through analyzing the impact of the number and sex of children on parents' life insurance holding and premium expenditure,this paper has reached the conclusion that the total number of children and the number of sons have a significant negative impact on parents' life insurance holdings and premium expenditure,but the number of daughters does not has such effect.After regression with instrumental variables,the number of daughters also has a negative impact on parents' life insurance purchase,which shows that the phenomenon of son preference has no obvious influence on the purchase of parents' life insurance.Parents' risk attitude acts as a mediating variable between children's condition and parents' life insurance purchase.Parents with a small number of children prefer risk,while parents who prefer risk are more likely to buy life insurance because it is considered to be kind of risky when buying life insurance.Finally,combined with the empirical analysis conclusion,some Suggestions are put forward from the aspects of adjusting product design and optimizing marketing strategy for the target population,paying more attention to the protection function of insurance products,attaching importance to reputation management and raising residents' awareness of life insurance.