Exploring Financial Knowledge and Consumer Confidence in Disability Insurance Decisions

Florent Nkouaga

International Journal of Business and Management, 2024, vol. 19, issue 5, 135

Abstract: This study examines the factors that affect the uptake of disability income insurance in the United States, specifically focusing on consumer confidence, financial knowledge, and human capital. Background- Disability income insurance is essential for maintaining financial stability as it provides income for individuals who are unable to work due to health issues. Despite its importance, the adoption of disability income insurance remains low, particularly among certain racial and demographic groups. Methods- Logistic regression analysis was conducted using data from the 2022 Survey of Consumer Finance to assess the relationships between consumer confidence, financial knowledge, human capital, and various sociodemographic factors. Controls for age, employment status, marital status, and race were included. Results- The analysis revealed significant racial disparities in insurance uptake. Asian participants exhibited the highest level of reluctance, while financial knowledge was found to positively correlate with insurance acquisition among Black individuals. Generational differences were also observed, with older White and Latino individuals demonstrating a lower inclination towards obtaining insurance. Conclusion- The findings underscore the importance of culturally sensitive financial education and policies tailored to diverse communities. Improving consumer confidence and financial literacy is crucial for increasing the uptake of disability income insurance, which can enhance economic resilience and well-being across various demographic groups in the United States.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ccsenet.org/journal/index.php/ijbm/article/download/0/0/50527/54732 (application/pdf)
https://ccsenet.org/journal/index.php/ijbm/article/view/0/50527 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijbmjn:v:19:y:2024:i:5:p:135

Access Statistics for this article

More articles in International Journal of Business and Management from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().