An Analysis On Household Financial Vulnerability And Household Life Insurance Demand

China's life insurance industry has developed rapidly,but life insurance products'penetration rate is still not high,it needs to increase household initiatives to buy life insurance.Household financial vulnerability reflects the changes of consumption level before and after the death of family members,the main function of life insurance is to eliminate or mitigate economic impact of future uncertainty,the impact of financial risk on life insurance demand is our problem.China's households generally face financial vulnerability,the household who holds life insurance can deal with it better.In the empirical analysis,We build a comprehensive financial vulnerability index,using 2013 CHFS data to study household life insurance demand behavior,We find that the household financial vulnerability influences household "whether" holding life insurance,every 1%increase in financial vulnerability,life insurance purchase probability increases by 0.4%.High asset and income households buy more insurance,the impact of age is "inverted U",education level reflects the "cognitive ability" and"threshold effect",stock and life insurance are complementary,real estate extrudes life insurance.Household life insurance expense is also positively affected by financial vulnerability,but the impact of age and education on life insurance is not significant.Rural household life insurance decision is determined by asset and knowledge level,and premium is determined by income level.When there is debt in household,the promotion effect of financial vulnerability on life insurance demand significantly enhanced,the life insurance purchase probability increases by 1.2%,premium spending also increases.When household has social security,the impact of financial vulnerability on life insurance demand has weakened,but premium increases.Finally,based on the empirical conclusions,gives household advices on“whether”and how much to buy insurance,insurance company can base on financial vulnerability indicator to develop planning software and systems,design customer targeted survey to promote the popularity of life insurance products.