The study is intended to investigate the major determinants of life insurance demandrnin Ethiopia. The study focuses on the relationship of life insurance with six selectedrnindependent variables (income, inflation, real interest rate, level of education, lifernexpectance and dependence ratio). The researcher used a time series data from 1983-rn2012. The approach for this study is quantitative research approach. To find thernmajor determinant factors for life insurance demand, the researcher adapted a logrnlinear model. The adjusted R squared for the model is 0.9656 which indicates thatrnabout 96.56 percent of demand for life insurance is explained by the selected sixrnfactors. The t-statistics and p-value show that explanatory variables such as GDP perrncapita, inflation, real interest rate, level of education and life expectance arernstatistically significant at 10 percent significance level. GDP per capita, real interestrnrate, level of education and life expectance are positively related with life insurancerndemand whereas inflation is negatively related with life insurance demand.rnDependence ratio does not have a statistically significant relationship with liferninsurance. GDP per capita is the most important factor that influences demand forrnlife insurance followed by life expectance and level of Education. Inflation is the leastrnimportant factor in influence demand for life insurance.rnKey words: Life insurance, log linear model, Ethiopia