Long-Term Care: Risk Description of a Spanish Portfolio and Economic Analysis of the Timing of Insurance Purchase
This 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.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published, The Geneva Papers on Risk and Insurance, 2008, 33, 659-672|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00343104/en/|
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