Live insurance represents one of the basic types of personal investment. Poor interest in life insurance products is the main problem for the insurance industry in Croatia. Until today, there is no conducted scientific research to identify potential causes. Knowledge and information level about life insurance products could be one of the potential reasons. It is not likely to expect that person will buy a financial products if he is not fully informed, thus giving us a reasonable argument for making this empirical research. This topic is in direct relation with financial literacy, which can play a crucial role in resolving this problem. The main research goal is to verify the life insurance knowledge among students at the University of Zagreb. The student population is the most relevant group for conducting this research because they represent, potential future life insurance client and they are still evolving in the formal education process. The results of the conducted research indicate that the surveyed population has a low interest in contracting life insurance and they do not have adequate knowledge about life insurance. Such a result is valid for four of the observed six components of the university. In general, we cannot expect a significant increase in the demand for life insurance in the future, which would cause us to reach countries comparable to us in terms of the representation of life insurance. Furthermore, it was found that the majority of students did not attend any financial education programs. Such a result suggests that a review of the existing strategy of financial literacy of the student population is necessary. Adopting higher quality and more systematic education measures would certainly contribute significantly to changing the current situation.