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lifeinsurance

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Variable Question text Label
amount_lifeamount life insurance
ins001We would now like to ask you about life insurance. In a typical life insurance policy:

  • The purchaser either pays a one-time, upfront payment or monthly payments
  • Insurance companies pay money to the purchaser’s estate if they die while the policy is still active
  • In some contracts, the purchaser can trade in the policys value for its cash value

Please select whichever of the following is true:
own life insurance
ins002awhole life death benefit
ins002bterm life death benefit
ins002cterm life age
ins003_randomizerIndicates life insurance amount randomizerlife insurance amount randomizer
ins004^FL_ins004. This means that the life insurance will never make any payment. This might occur if the insurance company goes out of business, they claim you violated a clause in the contract, or they ruled the policy void for some other reason.

What is the percent chance this occurs?
chance never life insurance payment
ins004_randomizerIndicates life insurance frame 4 randomizationrandomizer ins004
ins005Suppose that you own a life insurance policy that promises to pay a death benefit of $^FL_amount_life to your estate. We would now like to focus on what might happen just during the next calendar year.

Suppose that you were to die during the next calendar year.

You have been given 20 balls to put in the following bins. Each bin describes a scenario that involves the life insurance payment that you are supposed to receive next year. The more likely you think a bin is, the more balls you should put in that bin.

What do you think will happen to the life insurance payment next year?
probability life insurance payment
ins006You put ^ins_balls[2] ball(s) in the bin marked "I will receive a payment less than I am supposed to receive." Please distribute those balls in the following bins. The more likely you think a bin is, the more balls you should put in that bin.

If you do receive a payment that is less than you are supposed to receive, how much do you think you would get?
less expected distribution
ins007The way you put balls into various bins shows that you expect to receive about ^ins_exp_value% of your life insurance benefit next year. It also shows that you could receive more or less than ^ins_exp_value% of the promised payment.

Let's call this distribution of possible payments, as described by you using the bins and balls, your "uncertain payments." So, your uncertain payments are whatever payments you think you might receive next year.

We are now interested in how you value having a contract with no uncertainty. Imagine a contract that is guaranteed to pay ^ins_discount% of your death benefit with no risk of the insurance company not paying out as promised. This is like having all 20 balls on this certain percentage. This contract is unbreakable and cannot be changed by anybody. This contract has no risk, but is guaranteed to pay less than the full promised amount of your original contract.

Would you rather have:
preference discount
ins008In general, how much effort do you think your estate will need to put in to receive the life insurance payments they are promised? For example, this could include your family members doing paperwork, talking with claims officers, talking with doctors, hiring lawyers, or other such activities.

Please choose one of the following:
how much effort needed
ins_balls
ins_balls_temp
ins_discountinsurance discount
ins_discount_randomizerIndicates discountinsurance discount randomizer
ins_exp_valueinsurance expected value
own_lifeown life insurance