Life insurance, precautionary saving and contingent bequest

被引：7
|
作者：
Chang, FR [1 ]
机构：
[1] Indiana Univ, Dept Econ, Bloomington, IN 47405 USA
来源：
MATHEMATICAL SOCIAL SCIENCES | 2004年 / 48卷 / 01期
关键词：
loading factor; birth order; actuarial rate of interest; the age of independence;
D O I：
10.1016/j.mathsocsci.2003.10.001
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We present a model of life-insurance purchase that takes into account the age of the beneficiary. The beneficiaries considered herein are young children with no resources whose consumption needs are protected by purchasing life insurance if the breadwinner dies. We show that income transfer grows as the child ages; however, the size of contingent bequest shrinks because the need for protection diminishes. Consequently, among the beneficiaries, the younger one would receive a larger bequest. The aggregate demand for life insurance is positively related to the number of children, their consumption needs, and the length of time to independence. (C) 2003 Elsevier B.V. All rights reserved.
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页码：55 / 67
页数：13
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