Role of Private Long-Term Care Insurance in Financial Sustainability for an Aging Society
| Autor: | M. Mercè Claramunt Bielsa, Xavier Varea Soler, Eva Boj del Val |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Income deficit
Geography Planning and Development TJ807-830 Management Monitoring Policy and Law Disease cluster TD194-195 01 natural sciences Financial management Renewable energy sources Population aging 010104 statistics & probability 03 medical and health sciences Insurance Envelliment de la població Economics life cycle Markov process GE1-350 0101 mathematics Long-term care insurance Consumption (economics) Assegurances Actuarial science Present value Environmental effects of industries and plants Renewable Energy Sustainability and the Environment 030503 health policy & services simulation Market liquidity Environmental sciences Work (electrical) Spain survey of household finances Gestió financera Financial modeling 0305 other medical science cluster analysis |
| Zdroj: | Sustainability, Vol 12, Iss 8894, p 8894 (2020) Dipòsit Digital de la UB Universidad de Barcelona Sustainability Volume 12 Issue 21 |
| ISSN: | 2071-1050 |
| Popis: | This work analyzes and quantifies the significance of private long-term care insurance for the elderly in protecting families from the increased expenses derived from dependency. We propose an economic and financial model for consumption and income deficit evolution. Survival/dependency are modeled by a Markov process with stochastic simulation techniques to obtain random variable distributions. Based on the Spanish survey of household finances data, Spanish families are classified using a cluster analysis for the wealth decumulation period. The conclusion is that, for a generic family, hiring long-term care insurance causes a significant reduction in the probability of lack of liquidity, the mean first time of lack of liquidity (if it occurs), and the mean present value of overall liquidity needs. It is also observed that there are important differences between these impacts on different groups of families. These results show that hiring long-term care insurance would considerably lower financial problems in the decumulation period. |
| Databáze: | OpenAIRE |
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