Does 'early purchase' improve the willingness to pay for long-term care insurance?
AbstractCoverage for long-term care insurance (LTCI) is scant. One common reason analysts refer to is individual's myopia in planning insurance well ahead of need. We attempt to test this by empirically eliciting the willingness to pay for a hypothetical long-term care insurance policy at two different periods of time namely: (a) current respondent time and (b) assuming the respondent is 40. We draw upon data from Spain where no insurance was available at the time of the study. We find that on average only one-fifth of the respondents find LTCI a suitable alternative and that interestingly, the willingness to pay does not seem to change significantly when individuals are at an 'optimal' purchasing age. The willingness to pay for LTCI is driven by individual's perceptions of risks conditional on survival instead.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 16 (2009)
Issue (Month): 13 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.