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LIFE INSURANCE HOLDINGS AND WELL‐BEING OF SURVIVING SPOUSES
Author(s) -
Harris Timothy F.,
Yelowitz Aaron
Publication year - 2018
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12211
Subject(s) - earnings , socioeconomic status , demographic economics , life insurance , economics , health and retirement study , actuarial science , demography , finance , sociology , population
Premature death of a breadwinner can have devastating financial consequences on surviving dependents. This study investigates the role of life insurance in mitigating the long‐run financial consequences of spousal mortality. Using the Health and Retirement Study, we examine individuals whose spouses died during or soon after his or her peak earnings years. After controlling for socioeconomic status, we find that sizable lump‐sum life insurance payouts do not significantly influence spousal well‐being. ( JEL D31, G22, I31, J32, J33, J38)