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The market for life insurance is a major institution of the financial sector, with the ability to provide various financial services and investment opportunities for consumers. The factors governing why people choose to invest in insurance remain indistinct.This paper seeks to identify the determinants of the demand of life insurance, through life insurance premiums, in Philippine households. In particular, it examines the expenditures of the households and its effects on a family’s desire to have an insurance coverage. Our test on a cross-sectional data from 2009 PH Family Income and Expenditures Survey asserts that households which have more medical and human capital investments demand more insurance. Specifically, households with an income of approximately Php 126,000 and above were seen to have significant insurance consumption. The research also shows that the household type, household heads’ occupations, and age are all robust predictors of life insurance demand. Media exposure and smoking appears to have minimal effects on a household’s decision whether to purchase life insurance products or not.These are consistent with the results established using GLS, FE and RE methods. We also found out that families obtain insurance coverage generally through participation in the labor force. In addition, high dependency ratios and increased wealth and revenues received by the households make them more risk averse. Political and economic stability contribute to strengthening the insurance consumption for a certain populace.It is recommended that future studies focus on the different cultural factors that may possibly influence the households’ saving motives as well as their preferences for healthcare investments.

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