Minority Household Size and the Life Insurance Purchase Decision

25 Pages Posted: 21 Apr 2015

See all articles by Michael Guillemette

Michael Guillemette

Texas Tech University - Department of Personal Financial Planning

Monica Hussein

California State University, Northridge

G. Michael Phillips

California State University, Northridge

Terrance Martin

University of Texas - Pan American - College of Business Administration - Department of Economics & Finance; Texas Tech University

Date Written: December 17, 2014

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.

Keywords: life insurance, household size, term life insurance, cash value life insurance, race, minority

JEL Classification: G22, D81

Suggested Citation

Guillemette, Michael and Hussein, M. Monica and Phillips, G. Michael and Martin, Terrance, Minority Household Size and the Life Insurance Purchase Decision (December 17, 2014). Financial Services Review, 2015 Forthcoming, Available at SSRN: https://ssrn.com/abstract=2596647

Michael Guillemette (Contact Author)

Texas Tech University - Department of Personal Financial Planning ( email )

1301 Akron Ave, HS-260
Box 41210
Lubbock, TX 79409-1210
United States

M. Monica Hussein

California State University, Northridge ( email )

18111 Nordoff Street
Northridge, CA 91330
United States

G. Michael Phillips

California State University, Northridge ( email )

18111 Nordoff Street
Northridge, CA 91330
United States

Terrance Martin

University of Texas - Pan American - College of Business Administration - Department of Economics & Finance ( email )

1201 W. University Drive
Edinburg, TX 78539-2999
United States
9402245027 (Phone)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
145
Abstract Views
950
rank
282,305
PlumX Metrics