Role of policyholders’ beliefs in life insurance lapses: a model building approach

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Date

2024-09

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Emerald

Abstract

This study aims to understand the lapse behavior of life insurance policyholders. Despite being accessible for nearly two centuries, only a small fraction of individuals purchase such policies and many of those who do let them lapse. The belief hypothesis model (BHM) is introduced to elucidate the correlation between policyholders' beliefs and their decisions regarding life insurance lapses.

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Management, Life insurance, Consumer belief, Lapse behavior

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