Abstract: The new rural endowment insurance has been the full coverage of system in 2012,but the behavior that the farmers choose the minimum premium grade restrains the improvement of pension benefit level. Meantime the government taking financial subsidies is failure. Based on this reality, farmers participating behavior decision biases of prospect theory model is constructed in this paper, taking young farmers and among rural adults in two groups as the object of study. According to psychological characteristics including loss aversion, reference dependence, diminishing sensitivity, this paper revealed the response mechanism of farmers' participating behavior deviation and further proposed some advice, including constructing the financial incentive mechanism of the new rural endowment insurance based on availability fallacy, improving the lowest pay grade to break the anchoring effect, and highlighting the positive orientation of the framework effect to improve the performance of the Urban and Rural Resident Endowment Insurance and so on.

Key words: the urban and rural resident endowment insurance, decision choice, behavior bias, prospect theory