Cash value life insurance ownership among young adults: The role of self-discipline and risk tolerance

Abed G. Rabbani

Journal of Behavioral and Experimental Finance, 2020, vol. 27, issue C

Abstract: Cash value life insurance (CVLI) is a risk management tool that provides not only a life cycle protection but also a cash value accumulation potential. This study used the behavioral life cycle hypothesis as a theoretical framework and investigated the role of self-discipline and risk tolerance on CVLI ownership of young adult households aged 26–30. A logistic regression model was used to analyze the National Longitudinal Survey of Youth 1997 (NLSY97) that surveyed Americans born between 1980 and 1984. The results showed that the likelihood of owning CVLI increased with self-discipline and decreased with risk tolerance.

Keywords: Cash value life insurance; Risk tolerance; Self-discipline; Young adults (search for similar items in EconPapers)
JEL-codes: D91 G22 J13 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:27:y:2020:i:c:s2214635020300496

DOI: 10.1016/j.jbef.2020.100385

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