Household Demand for Private Long Term Care Insurance: An Exploratory Note

Swarnankur Chatterjee and Lu Fan ()
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Lu Fan: University of Missouri

Economics Bulletin, 2017, vol. 37, issue 3, 1975-1981

Abstract: This study uses the most recent wave of the Health and Retirement Study (HRS) to examine participation of aging households in the long-term care insurance market. Results suggest that households who perceived a need to move to a nursing home within the next five years and households with higher preference for risk management through insurance were more likely to have long-term care coverage. Interestingly, the households with higher levels of risk tolerance were less likely to have long-term care coverage. Conversely, households with a bequest motive were more likely to have long-term care coverage. Additionally, the empirical results of this study indicate that the probability of having long-term care coverage was higher for women. Households with greater educational attainment and greater net worth were also more likely to have long-term care coverage.

Keywords: Long Term Care; Insurance; Gerontology; Aging in Place; Risk; Retirement; Financial Planning (search for similar items in EconPapers)
JEL-codes: D1 J1 (search for similar items in EconPapers)
Date: 2017-08-31
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Citations: View citations in EconPapers (3)

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