The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study

TitleThe Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study
Publication TypeJournal Article
Year of Publication2003
AuthorsB. Bernheim, D, Forni, L, Gokhale, J, Kotlikoff, LJ
JournalAmerican Economic Review
Volume93
Issue1
Pagination354-365
Call Numberpubs_2003_Bernheim_03.pdf
KeywordsInsurance, Net Worth and Assets
Abstract

This study examines life insurance holdings
and financial vulnerabilities among couples approaching retirement age. Two separate concerns motivate our analysis. First, there are
reasons to suspect that life insurance coverage
may be poorly correlated with underlying financial vulnerabilities. A well-known insurance industry adage holds that life insurance is “sold
and not bought.” Alternatively, households may
purchase long-term policies relatively early in
life, and subsequently fail to adjust coverage
appropriately because of inertia and/or other
psychological considerations. Second, households that purchase little or no life insurance
may leave either or both spouses at risk of
serious financial consequences

Notes

RDA 1999-006

DOI10.1257/000282803321455340
Endnote Keywords

Life Insurance/Widowhood

Endnote ID

6610

Citation Key6843