scholarly journals Tax Incentives, Bequest Motives, and the Demand for Life Insurance: Evidence from Two Natural Experiments in Germany

2010 ◽  
Author(s):  
Nicolas Sauter ◽  
Jan Walliser ◽  
Joachim K. Winter
Keyword(s):  
Life Insurance ◽  
Tax Incentives ◽  
Natural Experiments ◽  
Bequest Motives

scholarly journals Tax incentives, bequest motives, and the demand for life insurance: evidence from a natural experiment in Germany

2015 ◽  
Vol 14 (4) ◽  
pp. 525-553 ◽  
Author(s):  
NICOLAS SAUTER ◽  
JAN WALLISER ◽  
JOACHIM WINTER
Keyword(s):  
Life Insurance ◽  
Natural Experiment ◽  
Tax Incentives ◽  
Difference In Differences ◽  
Bequest Motives ◽  
Life Insurance Demand ◽  
Theoretical Predictions ◽  
Tax Changes ◽  
The Impact

AbstractThis paper studies the role of taxation and bequest motives in households’ demand for life insurance. We develop a stylized three-period life cycle model of life insurance demand and test its predictions regarding tax changes and bequests motives. An unexpected halving of the tax exemption limit for interest and dividend income in Germany allows us to identify the impact of changes in taxation on the demand for life insurance in a difference-in-differences setting. In line with our theoretical predictions, we document that ownership of life insurance products increased significantly among households affected by the reform. We also find some evidence of a more pronounced response among households with stronger bequest motives.

scholarly journals Tax incentives and the demand for life insurance: evidence from Italy

2003 ◽  
Vol 87 (7-8) ◽  
pp. 1779-1799 ◽  
Author(s):  
Tullio Jappelli ◽  
Luigi Pistaferri
Keyword(s):  
Life Insurance ◽  
Tax Incentives

Steuervorteile und die Rendite des Lebensversicherungssparens / Tax Incentives and the Rate of Return on Saving through Life Insurance

1998 ◽  
Vol 217 (2) ◽  
Author(s):  
Stefan Brunsbach ◽  
Oliver Lang
Keyword(s):  
Life Insurance ◽  
Tax Incentives ◽  
Rate Of Return ◽  
Wird Eine

ZusammenfassungErsparnisbildung in Kapitallebensversicherungen wird im deutschen Einkommensteuersystem durch die Steuerfreiheit der Zinserträge bei Vertragsablauf und durch die Möglichkeit zum Sonderausgabenabzug der Versicherungsprämien gefördert. In der vorliegenden Arbeit wird der Effekt dieser Steuervorteile auf die Rendite von Lebensversicherungen untersucht. Hierzu wird eine Methode zur Aufspaltung der Versicherungsprämien in Risiko- und Sparkomponente und zur Berechnung der Rendite der Sparkomponente entwickelt. Unter Verwendung von Mikrodaten aus der Einkommens- und Verbrauchsstichprobe 1988 werden auf individueller Ebene Renditen unter Berücksichtigung der spezifischen steuerlichen Situation der Haushalte errechnet. Die steuerlich bedingte Streuung der Renditen zwischen verschiedenen Bevölkerungssegmenten ist beträchtlich. Es finden sich aber keine Hinweise darauf, daß von der steuerlichen Förderung ein wirksamer Anreiz zum Lebensversicherungssparen ausgeht.

Bequest Motives and the Demand for Life Insurance in East Germany

2014 ◽  
Vol 15 (2) ◽  
pp. 272-286 ◽  
Author(s):  
Nicolas Sauter
Keyword(s):  
Life Insurance ◽  
Empirical Studies ◽  
Precautionary Savings ◽  
Institutional Setting ◽  
Insurance Demand ◽  
Bequest Motives ◽  
Tax Regimes ◽  
Life Insurance Demand ◽  
High Regard ◽  
Households With Children

Abstract Empirical studies of household saving remain inconclusive about the role of bequest motives. This may be due to the diluting effect of different tax regimes across countries and time on estimates of bequest motives. Relative to market-based economies, the former German Democratic Republic can be viewed as an experimental institutional setting where life-insurance demand was not influenced by tax considerations. This allows isolating bequest motives from other life-cycle and precautionary savings motives. Analyzing the demand for life insurance, we find a significantly higher ownership probability among households with children and a high regard for the family, confirming bequest motives in life-insurance demand.

scholarly journals How Strong Are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities

1991 ◽  
Vol 99 (5) ◽  
pp. 899-927 ◽  
Author(s):  
B. Douglas Bernheim
Keyword(s):  
Life Insurance ◽  
Evidence Based ◽  
Bequest Motives

Do People Choose Life Insurance for Protection or for Saving?

Metamorphosis ◽  
2021 ◽  
pp. 097262252110236
Author(s):  
Rajat Deb ◽  
Kanchan Kumar Nath ◽  
Mukesh Nepal ◽  
Sourav Chakraborty ◽  
Kiran Sankar Chakraborty
Keyword(s):  
Study Design ◽  
Life Insurance ◽  
Random Sampling ◽  
Tax Incentives ◽  
Cross Sectional Study ◽  
Primary Data ◽  
Stratified Random Sampling ◽  
Sectional Study ◽  
Cross Sectional

The current study has motivated for assaying whether life insurance (LI) enrolment should be taken as a protection tool or a saving instrument. Reviewing literature hypotheses have been farmed and tested by gathering primary data through a survey from 120 sample respondents chosen by applying stratified random sampling. It has applied a cross-sectional study design and significant results have validated selective demographics, risks, returns, tax incentives, and precautionary motives likely have influenced LI enrolments. Interestingly, instead of protection tools, LI plans have been preferred as saving instrument. Existing insured customers may use the report for revisiting their risk appetites and quantum of sum assured to assess whether they have been under-insured and if so, they could chalk out plans for taking purely term plans rather than traditional plans and unit link insurance plans to replenish the deficiency.

Bequest Motives and Determinants of Micro Life Insurance in Sri Lanka

2012 ◽  
Vol 40 (8) ◽  
pp. 1700-1711 ◽  
Author(s):  
Thankom Arun ◽  
Mirko Bendig ◽  
Shoba Arun
Keyword(s):  
Sri Lanka ◽  
Life Insurance ◽  
Bequest Motives

scholarly journals Life Insurance and Household Consumption

2012 ◽  
Vol 102 (7) ◽  
pp. 3701-3730 ◽  
Author(s):  
Jay H Hong ◽  
José-Víctor Ríos-Rull
Keyword(s):  
Marital Status ◽  
Life Insurance ◽  
Economies Of Scale ◽  
Marginal Utility ◽  
Household Consumption ◽  
Equivalence Scales ◽  
Bequest Motives ◽  
Home Goods ◽  
Very High

Using life insurance holdings by age, sex, and marital status, we infer how individuals value consumption in different demographic stages. We estimate equivalence scales and bequest motives simultaneously within a fully specified model where agents face US demographics and save and purchase life insurance. Our findings indicate that individuals are very caring for dependents, that economies of scale are large, that children are very costly (or yield very high marginal utility), that wives with children produce lots of home goods, and that females display habits from marriage, while men do not. These findings contrast sharply with standard equivalence scales.

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