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Don't They Care? Or, Are They Just Unaware? Risk Perception and the Demand for Long‐Term Care Insurance

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  • Tian Zhou‐Richter
  • Mark J. Browne
  • Helmut Gründl

Abstract

The potential need for long‐term care (LTC) is one of the greatest financial risks faced not only by the elderly but also by their adult children, who often provide care or financial assistance. We investigate adult children's role in the demand for LTC insurance. Similar to flood insurance, we find that demand for LTC insurance is low due to low risk perception. The more aware adult children are of the risk, the more likely LTC insurance is to be purchased, either by the children themselves on behalf of their parents or by the parents under the influence of their children.

Suggested Citation

  • Tian Zhou‐Richter & Mark J. Browne & Helmut Gründl, 2010. "Don't They Care? Or, Are They Just Unaware? Risk Perception and the Demand for Long‐Term Care Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(4), pages 715-747, December.
    • Handle: RePEc:bla:jrinsu:v:77:y:2010:i:4:p:715-747
    DOI: 10.1111/j.1539-6975.2010.01362.x
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    References listed on IDEAS

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