By Tian Hui, Research Institute of Finance, DRC

Research Report, No.199, 2021 (Total 6264) 2021-7-16

Abstract: Term life insurance is very popular in developed countries, but it has been neglected for a long time in China. Term life insurance is a highly effective tool to deal with the risks of premature death and survivors’ insurance deficiency, which can make up for the shortcomings of the family’s available risk management methods and play a role in social governance. Its popularization and development need to be vigorously promoted in China. At present, many local governments in China are trying to help residents cope with the risks of personal injury and death by purchasing group insurance for them with full financial contributions of government revenue. However, there are many problems including term constraints on support for survivors, low inclusiveness, and not conducive to establishing a diversified risk-sharing mechanism. It is necessary to integrate and standardize the existing practices into an inclusive term life insurance system based on government and market cooperation to achieve win-win results in terms of improving the efficiency of t government’s financial resources and contributing to people’s security. In addition, it is necessary to remove various obstacles to the popularization of term life insurance by raising people’s insurance awareness, ensuring relatively low premium rates and providing fiscal and tax incentives.

Keywords: term life insurance, popularization, policy, support