Life insurance is a financial instrument used to protection against loss, from a monetary point of view, from the premature death or permanent incapacity to work. One of the most effective functions of life insurance is creating funds and gain these funds to the economy using the capital markets through a variety of investment instruments. This potential of fundraising has gained importance in our country in recent years. Over time, cumulative life insurance which is a branch of life insurance; that allow you to save money depending on your life at the end of a certain period have become remarkable. But with the emergence of the individual pension system, some of the life insurance policyholders have found more attractive to sustain the idea of life after retirement and were directed to this system. The aim of this study is to investigate the place of life insurance in the Turkish economy, and the effect of the transition of life insurance to the individual pension system to the economy.