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Editors' Synopsis: The existence of an insurable interest in the life of the insured is a basic prerequisite to the enforceability of any policy of life insurance. This article, which [...]

Finally, insurance agents engaging in STOLI transactions are at risk as well. In at least one case, the State of Florida arrested and accused an insurance agent of criminal activity [...]

Once in a while, you buy something you hope you won't need soon. Put life insurance right at the top of that list. On its face, the concept of life [...]

Using the 1995 Survey of Consumer Finances and an elaborate life-cycle model, we quantify the potential financial impact of each individual's death on his or her survivors and measure the degree to which life insurance moderates these consequences. Life insurance is essentially uncorrelated with financial vulnerability at every stage of the life cycle. As a result, the impact of insurance among at-risk households is modest, and substantial uninsured vulnerabilities are widespread, particularly among younger couples. We also identify a systematic gender bias: For any given level of financial vulnerability, couples provide significantly more protection for wives than for husbands. (JEL D10, G22), I. INTRODUCTION The purpose of this article is to examine life insurance holdings and financial vulnerabilities among couples over the life cycle. Two separate concerns motivate our analysis. First, there [...]

Some insurance agents encourage policyholders to switch life insurance policies in order to receive commissions. However, it is usually advisable for policyholders not to replace their policies, especially if they have not encountered any major problem with their insurers in the past. Switching of policies often turns out to be more costly and inconvenient for the policyholders. However, policyholders whose health has improved significantly should consider buying a new policy if their current insurers do not want to acknowledge the improvement in their health., Conventional wisdom says you should never dump an old policy for a new one. Here's when you should make an exception to that rule. If it ain't broke, don't fix [...]

Everybody talks about a farsighted financial plan, but most of us are pretty nearsighted about actually putting our money to work for tomorrow. An insurance salesman calls, and we buy [...]

Last Will and Testament. Sounds majestic, doesn't it? And reassuring: Once you've had your will prepared, signed, and witnessed, you'll probably feel you've done right by your heirs. But many [...]

Q: One of my colleagues is purchasing a new life insurance policy as a means of making a charitable donation. How does this work, and what are the advantages of [...]

Q: I am going to be purchasing life insurance to protect my family in the event of premature death. Several of my colleagues have told me to look into a [...]

Q: An insurance agent is trying to persuade me to exchange my present whole life policy for a variable life policy. He says the transaction will be tax-free and will [...]