Does income share influence the intra-household allocation of life insurance? An analysis based on the collective model and Chinese data

Previous research on household insurance demand focuses predominantly on household heads or aggregate demand, overlooking how life insurance (LI) is allocated among members. This study extends the collective model to intra-household life insurance allocation and empirically tests it using 2017–2019 China Household Finance Survey data. The results reveal a member’s higher income share significantly increases both LI participation and premium expenditure share, with effects more pronounced for term LI compared to cash-value LI. These effects are stronger among female earners but attenuate in provinces with developed social security systems. Additionally, the underlying mechanisms operate through private consumption proportion and financial vulnerability. Finally, the moderating effects are exerted by minor children covered by LI and older persons receiving pensions, revealing non-labour-force intergenerational dynamics. This study attempts to unpack the ‘black box’ of household insurance decision-making, providing a new research perspective on risk management and family economics.