Research On The Influence Of Housing Wealth On Family Life Insurance Purchase Behavior

With the rapid development of China’s housing market in recent years,housing has become the most important part of China’s family wealth.Because real estate has the dual attributes of consumption and investment,household housing assets are often accompanied by the wealth effect.On the one hand,housing wealth can bring a certain security effect to the family,reduce the family’s preventive savings for the future,increase the current expenditure,and indirectly affect the consumer spending behavior of residents.On the other hand,the wealth effect will affect the investment behavior of families,which can increase the expenditure on insurance,stocks,funds and other investment products,improve the allocation of family assets structure,and disperse risks.The long-term and stable development of life insurance is related to the harmony and stability of the national economy and society,and more importantly,the ability of residents or families to cope with uncertain risks.Personal insurance helps families prevent and resolve the uncertainty brought by personal risks,greatly reduces the pressure on residents and families to bear personal risks,and improves their subjective well-being and sense of gain.However,the proportion of social life insurance in family assets is still very low.Due to the property of its assets,housing wealth can be used by residents to deal with the self-insurance of future personal accident risks,and has the substitution or crowding-out effect on the personal insurance that also plays a protective role;but at the same time,housing assets also have the wealth effect,increasing the total household book assets,which can promote the purchase of personal insurance.So,does housing wealth affect household personal insurance purchase behavior and how? The existing research has not yet given a complete explanation.This paper uses the micro data of the China Household Finance Survey(CHFS)from 2013 to 2019 to build panel data to explore the effect and channel of housing wealth on households’ purchase of life insurance.The research results indicate that:(1)housing wealth can significantly promote households’ purchase of personal insurance.(2)Housing wealth has different promoting effects on different types of life insurance premiums,and the impact of housing wealth on life insurance premiums is more significant.(3)Housing wealth increases the probability of households purchasing personal insurance by easing their liquidity constraints.(4)Compared with multi family households,housing wealth has a stronger promoting effect on the purchase of life insurance by one family;Compared with households with high and low risk preferences,in households with medium risk preferences,housing wealth has a more significant promoting effect on the purchase of personal insurance.The marginal contribution of this article lies in examining the influencing factors and mechanisms of family life insurance purchase behavior from the perspective of family housing wealth,enriching the research on the impact of family housing wealth on residents’ economic behavior,and expanding the research conclusions on the influencing factors of family insurance purchase behavior.