Non-saving Life Insurance Development and Its Challenges in Iran

Non-Saving life policies are the convenient tools for risk management by individuals and households. For the reason of adding the savings component to life insurance, we are observing the extreme orientation towards saving life policies and the insurance industry is moving away from the main function of life insurance. The aim of this article is to address the reasons for stagnation in nonsaving life policies and obstacles of its development. After reviewing the theoretical and practical literature, the contribution of non-saving life insurance in the portfolio of the life insurance industry is discussed. Using Mixed Method, we’re looking for reasons behind lagging non-saving life policies in the country. Results show that the factors such as expensively risk coverage; inappropriate life table used in the country and  fee rules orientations to encourage the sale of saving life policies; are the most important reasons behind the lagging non-saving life policies contribution in the life insurance portfolio of the country.