Who Responds to Estate Recovery? Survey Evidence from Switzerland on Long-Term Care Insurance and Informal Care Decisions

Laura Iveth Aburto Barrera (), Christophe Courbage and Joël Wagner
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Laura Iveth Aburto Barrera: Department of Actuarial Science, Faculty of Business and Economics (HEC), University of Lausanne, 1015 Lausanne, Switzerland
Christophe Courbage: Geneva School of Business Administration, University of Applied Sciences Western Switzerland (HES-SO), 1227 Geneva, Switzerland
Joël Wagner: Department of Actuarial Science, Faculty of Business and Economics (HEC), University of Lausanne, 1015 Lausanne, Switzerland

Risks, 2025, vol. 13, issue 11, 1-20

Abstract: Estate recovery is a policy whereby the state recovers public long-term care (LTC) benefits from the estates of deceased beneficiaries. Using data from a Swiss survey, this study examines which individuals are most responsive to estate recovery in their decisions to purchase LTC insurance and provide informal care. Generalized linear models with a binomial logit specification assess the role of bequest motives, concern about future dependence, beliefs about financial responsibility, and demographic factors. Results show the important role of the bequest motive in shaping the impact of estate recovery on informal care decisions, but not on LTC insurance decisions. In contrast, concerns about future dependence influence both types of decisions. Younger individuals and those who believe that financing LTC is a citizen’s responsibility are more sensitive to estate recovery when purchasing LTC insurance. Conversely, individuals who feel legally obligated to help their dependent parents or who provide assistance due to high professional care costs are more likely to report estate recovery as a relevant factor in caregiving decisions. These findings provide valuable information for more targeted LTC policy design by identifying individuals most responsive to estate recovery in their decisions to purchase LTC insurance and provide informal care.

Keywords: estate recovery; long-term care insurance; informal care; dependency care; bequest motive (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2025
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