One-sided commitment in life insurance contracts: Evidence from Health and Retirement Study

TitleOne-sided commitment in life insurance contracts: Evidence from Health and Retirement Study
Publication TypeJournal Article
Year of Publication2022
AuthorsWu, X, Gan, L
JournalEconomics Letters
Volume219
Pagination110825
ISSN Number0165-1765
KeywordsLife insurance, One-sided commitment
Abstract

We study the properties of long-term insurance contracts using an individual-level survey data. Results indicate longer-term contracts are involved with lower lapse rates and healthier pool. These are consistent with the implications of Hendel and Lizzeri model with one-sided commitment.

DOI10.1016/j.econlet.2022.110825
Citation KeyWU2022110825