@article {7976, title = {Optimal Portfolio Choice with Annuities and Life Insurance for Retired Couples}, journal = {Review of Finance}, volume = {18}, year = {2014}, note = {Times Cited: 0}, pages = {147-188}, publisher = {18}, abstract = {Using a portfolio choice model, we derive the optimal demand for stocks, bonds, annuities, and term life insurance for a retired couple with uncertainty in both lifetimes. We show that the optimal portfolio is heavily weighted with joint annuities and that life insurance is purchased mainly to protect a surviving spouse from loss of annuitized income rather than for bequest. Consistent with these predictions, empirical analyses on Health and Retirement Study data indicate that life insurance holdings are related to the degree of asymmetry in the couple{\textquoteright}s annuitized income distribution.}, keywords = {Adult children, Insurance, Net Worth and Assets}, doi = {10.1093/rof/rfs046}, author = {Hubener, Andreas and Maurer, Raimond and Rogalla, Ralph} }