In this study, we investigate how the desire to leave a bequest influences both ownership of life insurance and changes in the demand for life insurance. We find that the desire to leave bequests is related to the ownership of both term and cash value life insurance. We also find that an increase in the self-reported probability of leaving a bequest is positively associated with the purchase of life insurance for small bequests and negatively associated with the likelihood of dropping term coverage. The results provide further empirical support for the use of life insurance to satisfy bequest motives and offer insight into the ways in which bequest motives may impact life insurance demand.
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Cole et al. (2024) studied this question.
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