The decrease in life insurance ownership

Implications for financial planning

Authors

  • Kyoung Tae Kim Department of Consumer Sciences, University of Alabama
  • Travis P. Mountain Department of Agricultural and Applied Economics, Virginia Tech University
  • Sherman D. Hanna Department of Human Sciences, Ohio State University
  • Namhoon Kim Korea Rural Economic Institute

DOI:

https://doi.org/10.61190/fsr.v28i1.3412

Keywords:

Survey of Consumer Finances, Declining insurance demand, Life insurance

Abstract

Based on our analyses of Survey of Consumer Finances datasets, the proportion of households owning a life insurance policy decreased from 72% in 1992 to 60% in 2016. We estimated logistic regressions on the likelihood of ownership of any, term, and cash value life insurance. We conclude that changes in household characteristics accounted for the decrease in term life insurance ownership, but not for the decreases in any and in cash value life insurance ownership. We also found a positive association between use of a financial planner and life insurance ownership. We discuss implications for financial planning.

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Published

2020-03-30

How to Cite

Kim, K. T., Mountain, T. P., Hanna, S. D., & Kim, N. (2020). The decrease in life insurance ownership: Implications for financial planning. Financial Services Review, 28(1), 1–16. https://doi.org/10.61190/fsr.v28i1.3412

Issue

Vol. 28 No. 1 (2020): Spring 2020

Section

New Original Submission

License

Copyright (c) 2019 Academy of Financial Services

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