Abstract
The dissertation provides an overview of the factors which drive household life insurance purchasing and lapse behavior and introduces novel factors undetected in the present literature. By combining the findings of the research in life insurance demand, lapse and policy loans demand, the study detects the consistencies and controversies within the literature and uncovers the importance of borrowing constraints and regulation for life insurance development. The disconnection between the streams in life insurance and the possibility for adoption of much interdisciplinary approach suggest a potential for future research, especially in the macroeconomic studies, besides the data constraints existent in the present research.