Determinants of Satisfaction with Preparations for Financial Emergencies
11 Pages Posted: 16 Jul 2014
Objectives were to examine the relationship between insurance knowledge and insurance coverage and to determine the predictors of satisfaction with preparations for financial emergencies. The systems approach to managerial behaviors developed by Deacon and Firebaugh (1988) was used as the theoretical framework for the study. Personal interviews with 123 household money managers were conducted in central Iowa in fall 1986. Male and highly-educated money managers had more insurance knowledge than female and less-educated money managers. High-income households and households in which the money manager was knowledgeable about insurance issues tended to have broad insurance coverage. The household money managers were more likely to be satisfied with their households’ preparations for financial emergencies if they were retired or disables and if their households had a high net worth and broad insurance coverage. Results may be used by financial counselors and educators to help money managers prepare to meet various financial emergencies.
Keywords: Financial emergencies, insurance coverage, insurance knowledge
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