Minority household size and the life insurance purchase decision

Authors

  • Michael Guillemette Department of Personal Financial Planning, University of Missouri
  • M. Monica Hussein b Center for Financial Planning and Investment and Department of Finance, Financial Planning, and Insurance at CSU Northridge
  • G. Michael Phillips Center for Financial Planning and Investment and Department of Finance, Financial Planning, and Insurance at CSU Northridge
  • Terrance Martin Department of Economics and Finance at the University of Texas-Pan American

DOI:

https://doi.org/10.61190/fsr.v24i1.3263

Keywords:

Life insurance, Household size, Term life insurance, Cash value life insurance, Race, minority

Abstract

This study uses the 1992–2010 Survey of Consumer Finances to analyze whether the likelihood of life insurance ownership and the face value amount of life insurance changes for minorities as household size changes. We find that the likelihood of life insurance ownership declines for Black and larger Hispanic families as household size increases when controlling for a variety of socioeconomic and demographic variables. There is also a significant decline in the face value amount of term life insurance purchased by Black families as household size rises. We provide possible explanations for these effects and also discuss implications for financial planners.

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Published

2015-03-30

How to Cite

Guillemette, M., Hussein, M. M., Phillips, G. M., & Martin, T. (2015). Minority household size and the life insurance purchase decision. Financial Services Review, 24(1), 37–50. https://doi.org/10.61190/fsr.v24i1.3263

Issue

Vol. 24 No. 1 (2015): Spring 2015

Section

New Original Submission

License

Copyright (c) 2015 Academy of Financial Services

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