The Decrease in Life Insurance Ownership: Implications for Financial Planning

Kim, K.T, Mountain, T.P., Hanna, S.D., & Kim, N. (2019). The decrease in life insurance ownership: Implications for financial planning. Financial Services Review, Forthcoming

32 Pages Posted: 23 Jul 2019

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Travis Mountain

Agricultural and Applied Economics; Agricultural and Applied Economics; Agricultural and Applied Economics

Sherman D. Hanna

Ohio State University (OSU)

Namhoon Kim

Korea Rural Economic Institute

Date Written: July 22, 2019

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.

Keywords: Life insurance, Declining insurance demand, Survey of Consumer Finances

JEL Classification: D12, D14, G22

Suggested Citation

Kim, Kyoung Tae and Mountain, Travis and Hanna, Sherman D. and Kim, Namhoon, The Decrease in Life Insurance Ownership: Implications for Financial Planning (July 22, 2019). Kim, K.T, Mountain, T.P., Hanna, S.D., & Kim, N. (2019). The decrease in life insurance ownership: Implications for financial planning. Financial Services Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3424157

Kyoung Tae Kim

University of Alabama ( email )

312 Adams Hall
Tuscaloosa, AL 35487-0001
United States

Travis Mountain

Agricultural and Applied Economics ( email )

2025 Woodland Hills Dr.
Blacksburg, VA 24061
United States
2406 (Fax)

Agricultural and Applied Economics ( email )

206B Hutcheson Hall
Blacksburg, VA 24060
United States

Agricultural and Applied Economics ( email )

Blacksburg, VA 24061
United States
24060 (Fax)

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

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

Namhoon Kim

Korea Rural Economic Institute ( email )

601 Bitgaram-ro
Naju, Jeollanam-do 58321
Korea, Republic of (South Korea)

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