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 Last revised: 17 Oct 2019
Date Written: July 22, 2019
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: Suggested Citation