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
Date Written: 2017
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: Suggested Citation