The Effects of Risk Aversion on Life Insurance Ownership of Single-Parent Households

10 Pages Posted: 17 Jul 2018

See all articles by Youngwon Nam

Youngwon Nam

Ohio State University (OSU) - Department of Human Sciences

Sherman D. Hanna

Ohio State University (OSU)

Date Written: June 25, 2018

Abstract

This study investigates the effect of risk aversion of single-parent households with at least one child under 18 on life insurance ownership. Analyzing the 1992-2013 Survey of Consumer Finances datasets, we found that the likelihood of owning term life insurance decreases as risk aversion increases, but the likelihood of owning cash-value life insurance increases as risk aversion increases. Smokers were less likely to own term life insurance but more likely to own cash-value life insurance than comparable non-smokers.

Keywords: Life Insurance, Risk Aversion, Investments, Single-Parent Household

JEL Classification: D12, D14, G22, J12

Suggested Citation

Nam, Youngwon and Hanna, Sherman D., The Effects of Risk Aversion on Life Insurance Ownership of Single-Parent Households (June 25, 2018). Applied Economics Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3202566

Youngwon Nam

Ohio State University (OSU) - Department of Human Sciences ( email )

United States

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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