A Bridge Life Insurance for Households-Diagnosis and Motives

Purpose: The purpose of this article is to describe the initial concept of household bridging insurance. Design/methodology/approach: In the first part of the article, an extensive literature review is made. This is made to show the research gap of insufficient protection of households against destabilization resulting from the lost personal contribution. Data shown in the text present the scale of the loss of lost unpaid work (based on household time budgets). The existing methods of managing this loss, based on social insurance, are also shown. Findings: This paper discusses the possibility of creating a new insurance. Its need is indicated (research gap, the scale of the problem, and insufficient protection by the social insurance system) and a preliminary outline of its structure is indicated (annuities character, dynamic sum insured related to the lifecycle of the household). The article contains the theoretical background of the new product, and introduces further research on the use of multistate models in the construction and calculation of insurance premiums. Originality/value: So far, studies concerning, inter alia, personal damage indicate the lost personal contribution (unpaid work for household members) and even try to evaluate it. However, no private insurance has been proposed to mitigate the destabilization resulting from the death of an adult household member. The article therefore proposes a new life insurance (a separated policy or as an extension option) that would help the household to return to normal operation after the death of one of the household members.