Can Health State-Contingent Assets Enable Greater Survival Rates?

58 Pages Posted: 1 Jul 2020

See all articles by Kunal Sachdeva

Kunal Sachdeva

Rice University - Jesse H. Jones Graduate School of Business

Date Written: June 30, 2020

Abstract

This study empirically evaluates the relationship between health state-contingent assets and their ability to facilitate greater survival rates. Using transaction-level data from the life settlement market in a quasi-experimental setting, this study finds that wealth in particularly poor states of health leads to a significant increase in survival rates. This relationship is stronger for people in fragile health and those living furthest from hospitals. Improved survival rates are independent from the severity of the disease diagnoses and the social-economic status of the policyholders. These findings provide novel evidence in support of financial solutions aimed at the rising cost of healthcare.

Keywords: G22, G52, I13, I31

JEL Classification: Life Insurance, Life Settlements, Aging, Longevity

Suggested Citation

Sachdeva, Kunal, Can Health State-Contingent Assets Enable Greater Survival Rates? (June 30, 2020). Available at SSRN: https://ssrn.com/abstract=3620564 or http://dx.doi.org/10.2139/ssrn.3620564

Kunal Sachdeva (Contact Author)

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

HOME PAGE: http://kunalsachdeva.com

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