Investigating household choice for health and life insurance

Ashish Kumar*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

The objective of this article is to investigate the joint determination of household choice for health and life insurance. Using the 2008–2009 Consumer Expenditure Survey data, we model household choice for health and life insurance assuming households consider purchasing them to manage financial risks in their life, after accounting for household characteristics, insurance characteristics, health status, and disability status. The model allows assessing the impact of health insurance choice on the choice of life insurance and the correlation between these two choices. The result suggests that health insurance choice positively affects the choice of life insurance and these two choices are positively correlated indicating complementary nature of these insurances in the basket of households’ risk minimising goods.

Original languageEnglish
Pages (from-to)267-273
Number of pages7
JournalAPPLIED ECONOMICS LETTERS
Volume26
Issue number4
DOIs
Publication statusPublished - 23 Feb 2019
MoE publication typeA1 Journal article-refereed

Keywords

  • bivariate probit
  • financial risk
  • health insurance
  • Insurance
  • life insurance

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