Why aren't more families buying life insurance?

Chambers, Matthew S., Don E. Schlagenhauf, and Eric R. Young. “Why aren't more families buying life insurance?”. CRR WP 2011-7, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, March 2011. http://hdl.handle.net/2345/bc-ir:104850.
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Abstract

This paper explores life insurance holdings from a general equilibrium perspective. Drawing on the data explored in Chambers, Schlagenhauf, and Young (2003), we calibrate an overlapping generation's life cycle economy with incomplete asset markets to match facts regarding the uncertainty of income and demographics. We then estimate that life insurance holdings for the purpose of smoothing family consumption are so large that they constitute a puzzle from the perspective of standard economic theory. Furthermore, the welfare gains from a life insurance market are concentrated in the minds of households who use the real world market very little.

Title
Why aren't more families buying life insurance?
Author
Chambers, Matthew S.
Schlagenhauf, Don E.
Young, Eric R.
Center
Center for Retirement Research
Genre
working paper
Date Issued
March 2011
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2011-7
Persistent Link
http://hdl.handle.net/2345/bc-ir:104850
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Health/long-term care

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