Can the Life Insurance Market Provide Evidence for a Bequest Motive?
Year: 2012
Type: article
Study design: Observational Study
Abstract: Using U.K. microeconomic data, we analyze the empirical determinants of participation in the life insurance market. We find that term insurance demand is positively correlated with measures of bequest motives like being married, having children, and/or subjective measures of strong bequest motives. We then show that a life‐cycle model of life insurance demand, saving, and portfolio choice can rationalize quantitatively the data in the presence of a bequest motive. These findings provide evidence supporting the presence of a bequest motive.
Source: Journal of Risk & Insurance
Authors: Joachim Inkmann, Alexander Michaelides
Institutions: The University of Melbourne, University of Cyprus
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3125765670