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

Economics Bulletin, Forthcoming

12 Pages Posted: 21 Sep 2017 Last revised: 19 Jan 2018

See all articles by Swarn Chatterjee

Swarn Chatterjee

University of Georgia

Lu Fan

University of Missouri

Date Written: 2017

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: LTCI, Long Term Care, Insurance, Risk, Gerontology, Aging in Place, Risk, Retirement, Financial Planning

JEL Classification: D1, D14, D90, D91, G22, H31, I13, J1, J14, R2

Suggested Citation

Chatterjee, Swarn and Fan, Lu, Household Demand for Private Long Term Care Insurance: An Exploratory Note (2017). Economics Bulletin, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3038482

Swarn Chatterjee (Contact Author)

University of Georgia ( email )

Athens, GA 30602-3622
United States

Lu Fan

University of Missouri ( email )

239 Stanley Hall
Columbia, MO Columbia 65211
United States
573-884-9188 (Phone)

HOME PAGE: http://pfp.missouri.edu

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