Evaluating Life Insurance Demand in Iran

Insurance is one of the key tools in modern life which has a great role in reducing risks and providing financial and mental security and finally it can broaden for countries economic development. The main objective of this article is estimate the demanding life insurance and analysis effective factors on it which was investigated in the period 1358–1388. According to the theoretical principals, the model of demanding life insurance in Iran is a factor of real per capita income, savings rate, expects inflation, percent literacy and the rate of interest. In order to providing the model of economic evaluation method, vector auto-regressive (var) has been used. Based on the results, the variables real per capita income, interest rates, savings rates have positive and significant relationship with the demanding life insurance. The variable of expected inflation rate is negative and significant relationship with life insurance demand and there isn’t a significant between the variable of percent literacy and the life insurance demand.