In this paper we estimate the demand function for life insurance in Iran for the years 1345-1382 as well as oil-exporting countries with middle income during 1998-2002 by using the ARDL approach and Panel Data respectively. The results show that the income, size of family and education are the most important factors that affect the demand for life assurance in Iran. Moreover income and death probability of family head are the most determinant factors in the demand function for life assurance in oil exporting countries with middle income. Overall, the results implies the institutional and technical capacities, particularly in supply side, are the most important factors in life insurance development in Iran and other oil-producing countries and standard model based on demand-side factors cannot explain life insurance behavior satisfactorily.
JEL Classification: G2; D8