Life Insurance of the Elderly: Adequacy and Determinants / Alan J. Auerbach, Laurence J. Kotlikoff.

Format:

Book

Author/Creator:

Auerbach, Alan J.

Contributor:

National Bureau of Economic Research.

Kotlikoff, Laurence J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1737.

NBER working paper series no. w1737

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Life Insurance of the Elderly

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1985.

Summary:

Despite a general reduction in poverty among the aged, roughly one third of elderly nonmarried women are officially poor. Many of these women are widows.The fact that poverty rates are significantly larger for widows than for married women suggests that many households may fail to buy sufficient life insurance.This paper considers the adequacy and determinants of life insurance among the elderly. Its principal conclusions are:(1) Combined private and public life insurance is inadequate for a significant minority of elderly households;(2) Of those elderly households in which the husband's future income representsa significant fraction of total household resources, roughly half are inadequately insured;(3) Households do not significantly offset Social Security's provision of survivor insurance by reducing their private purchase of life insurance; and(4) The actual determinants of the purchase of life insurance appear to differ greatly from those predicted by economic theory.

Notes:

Print version record

October 1985.