Precautionary savings and the self-employed

This work focuses on the impact of uncertainty on savings under bequest form. Specifically, we estimate whether and to what extent income variability does have an effect on post-mortem savings. We approximate the post-mortem savings with the closest dedicated savings, which is savings in term insurance, a lump sum inherited at the death of the subscriber. Furthermore, we test whether the intensity of the income variance or the riskiness of the job type—such as self-employment—matters more in the choice. Our results show that self-employment status is one of the most relevant variables affecting term insurance ownership.