Framing the decision to buy long-term care insurance: losses and gains in the context of statistical and narrative evidence

Jeremy Pincus (), Katherine Hopewood () and Robert Mills ()
Additional contact information
Jeremy Pincus: Isobar
Katherine Hopewood: Isobar
Robert Mills: Isobar

Journal of Financial Services Marketing, 2017, vol. 22, issue 1, No 5, 33-40

Abstract: Abstract Rational models have difficulty explaining low levels of demand for long-term care insurance. We posit that insurers have framed the need for insurance in a manner that unintentionally promotes risk-seeking behavior (i.e., high probability loss frame), and that alternative frames can better promote willingness to insure. We further posit that emotional frames are more effective than rational risk frames in promoting willingness to pay. Survey evidence supports these hypotheses: emotional narrative frames are associated with greatest willingness to pay, and the high probability loss frame was associated with among the lowest average amounts willing to pay.

Keywords: Emotion; Motivation; Behavioral economics; Framing; Long term care insurance; Narrative (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41264-017-0019-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jofsma:v:22:y:2017:i:1:d:10.1057_s41264-017-0019-4

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41264

DOI: 10.1057/s41264-017-0019-4

Access Statistics for this article

Journal of Financial Services Marketing is currently edited by Tina Harrison

More articles in Journal of Financial Services Marketing from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().