The impact of giving and receiving remittances on life insurance purchases

Type Journal Article - South African Actuarial Journal
Title The impact of giving and receiving remittances on life insurance purchases
Author(s)
Volume 21
Issue 1
Publication (Day/Month/Year) 2021
Page numbers 27-47
URL https://journals.co.za/doi/pdf/10.4314/saaj.v21i1.2?casa_token=GhpnV_WuUrAAAAAA:oLnsx7D-0SKZt6s8uG9e​MqJsU0ST6Zrj4Ra4k4HjIfh_Hd7bJB12hYg-9FjkixOtb4Z1M0h6hC5ncPQ
Abstract
Remittance arrangements, or inter-household transfers in cash or kind, have been identified as an influential factor in funeral insurance purchase decisions of South African households. On the one hand, remittances can alter income and higher levels of income are associated with more insurance purchases. On the other hand, remittances can act as an informal insurance arrangement reducing formal insurance purchases. It was found using data from the fifth wave of the National Income Dynamics Study that remittances did not have a strong effect on life insurance purchases generally although for young, low-income, unbanked African and other households, receiving remittances may have discouraged life insurance purchases.

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