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The effect of experiencing a death on life insurance ownership

Author

Listed:
  • Song, In Jung
  • Park, Heejung
  • Park, Narang
  • Heo, Wookjae

Abstract

Though there is a huge literature on the demand for life insurance, it heavily focuses on demographic and economic factors. This study fills the gap in the current literature by incorporating psychological factor such as an experiencing a death in family members. The goal of this paper is to investigate the effect of death experience on life insurance ownership. Using a data from National Longitudinal Survey of Youth, we find evidence that there is positive association between a death experience and life insurance demand. Also, the model is better explained when both situational and dispositional factors are jointly examined.

Suggested Citation

  • Song, In Jung & Park, Heejung & Park, Narang & Heo, Wookjae, 2019. "The effect of experiencing a death on life insurance ownership," Journal of Behavioral and Experimental Finance, Elsevier, vol. 22(C), pages 170-176.
    • Handle: RePEc:eee:beexfi:v:22:y:2019:i:c:p:170-176
    DOI: 10.1016/j.jbef.2019.03.003
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    2. Eling, Martin & Ghavibazoo, Omid & Hanewald, Katja, 2021. "Willingness to take financial risks and insurance holdings: A European survey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    3. Rabbani, Abed G., 2020. "Cash value life insurance ownership among young adults: The role of self-discipline and risk tolerance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    4. Adam Śliwiński & Joanna Dropia & Norbert Duczkowski, 2021. "Risk Factors Affecting Bancassurance Development in Poland," Risks, MDPI, vol. 9(7), pages 1-19, July.
    5. Heejung Park & William Martin, 2022. "Effects of risk tolerance, financial literacy, and financial status on retirement planning," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(3), pages 167-176, September.

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