This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk … of a health shock that significantly increases his probability of dying. The family can buy term life insurance with …

stochastic mortality risk and health shock risk numerically. These shocks are interpreted as critical illness and can negatively … affect the expected remaining lifetime, the health expenses, and the income. In order to hedge the health expense effect of a …

health and adult household financial behavior, i.e. risky asset market participation. Using regression and decomposition … techniques, we test if this long reach of child health operates through cognitive and non-cognitive skills. Our results indicate … highlights the importance of good child health for adult financial behavior. …