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Funeral insurance: An inter-generational commitment device?

Research output: Contribution to journalArticle

Original languageEnglish
Pages (from-to)321-346
Number of pages26
JournalJournal of African Economies
Volume27
Issue number3
Early online date22 Nov 2017
DOIs
DateAccepted/In press - 1 Nov 2017
DateE-pub ahead of print - 22 Nov 2017
DatePublished (current) - 1 Jun 2018

Abstract

Funeral insurance is a global phenomenon that has existed throughout history and remains hugely popular in Africa today. Yet as a distinct financial device it has received little attention. The question is why it seems, in many contexts, to be preferred over standard life insurance even though the latter is a more flexible product. This paper presents a simple model in which funeral insurance differs from life insurance in that there is a constraint on how the payout is spent. Funeral insurance can therefore serve as an intergenerational commitment device. The model's key prediction is consistent with South African household data.

    Research areas

  • Commitment device, Funeral insurance, Insurance demand, Life insurance

Documents

Documents

  • Full-text PDF (accepted author manuscript)

    Rights statement: This is the author accepted manuscript (AAM). The final published version (version of record) is available online via Oxford University Press at https://academic.oup.com/jae/search-results?page=1&q=Funeral%20Insurance%3A%20An%20Inter-Generational%20Commitment%20Device%3F&fl_SiteID=5468&allJournals=1&SearchSourceType=1. Please refer to any applicable terms of use of the publisher.

    Accepted author manuscript, 405 KB, PDF-document

    Embargo ends: 22/11/19

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DOI

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