Long-Term Care: Risk Description of a Spanish Portfolio and Economic Analysis of the Timing of Insurance Purchase
AbstractThis paper analyzes the rationale of long-term care insurance purchasing, from a statistical analysis of insurance data and a life cycle model. We make a short survey of the pros and cons of LTC insurance purchase. Then risk distributions in the occurrence and duration dimension are estimated on a Spanish portfolio. Calendar effects are estimated besides age and gender. These statistical results are integrated in a life cycle model of savings and insurance purchasing. A numerical illustration is also provided, which leads to an optimal age of forty years for insurance purchase.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00343104.
Date of creation: 2008
Date of revision:
Publication status: Published, The Geneva Papers on Risk and Insurance, 2008, 33, 659-672
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Long-term care insurance; Lee-Carter models; life cycle approach; calendar; gender and age effects;
Other versions of this item:
- Montserrat Guill�n & Jean Pinquet, 2008. "Long-Term Care: Risk Description of a Spanish Portfolio and Economic Analysis of the Timing of Insurance Purchase," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 33(4), pages 659-672, October.
- NEP-ALL-2008-12-07 (All new papers)
- NEP-HEA-2008-12-07 (Health Economics)
- NEP-IAS-2008-12-07 (Insurance Economics)
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