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On the Motivations for Purchasing Long-Term Care Insurance: Protecting Bequest and Unreliability of Family Care

Author

Listed:
  • Sylvain Botteron

    (Geneva School of Business Administration, University of Applied Sciences Western Switzerland (HES-SO), Rue de la Tambourine 17, 1227 Carouge, Switzerland
    Department of Actuarial Science, Faculty of Business and Economics (HEC Lausanne), University of Lausanne, 1015 Lausanne, Switzerland)

  • Christophe Courbage

    (Geneva School of Business Administration, University of Applied Sciences Western Switzerland (HES-SO), Rue de la Tambourine 17, 1227 Carouge, Switzerland)

  • Joël Wagner

    (Department of Actuarial Science, Faculty of Business and Economics (HEC Lausanne), University of Lausanne, 1015 Lausanne, Switzerland
    Swiss Finance Institute, University of Lausanne, 1015 Lausanne, Switzerland)

Abstract

Family considerations are known to influence the decision to buy long-term care (LTC) insurance. This paper uses a Swiss survey to identify the characteristics of individuals willing to purchase LTC insurance, either to protect their children’s bequest or because they cannot rely on family for care. First, it shows that the presence or absence of children plays an important role in the two motivations for buying LTC insurance. Second, it shows that individuals from the French-speaking part of Switzerland and those with lower self-perceived health are more likely to buy LTC insurance because of the unreliability of family care. On the other hand, individuals with higher self-perceived health and those with a right and center political orientation are more likely to buy LTC insurance for reasons of bequest protection. The results provide insights into designing more targeted strategies to promote LTC insurance.

Suggested Citation

  • Sylvain Botteron & Christophe Courbage & Joël Wagner, 2024. "On the Motivations for Purchasing Long-Term Care Insurance: Protecting Bequest and Unreliability of Family Care," Risks, MDPI, vol. 12(8), pages 1-13, August.
    • Handle: RePEc:gam:jrisks:v:12:y:2024:i:8:p:124-:d:1450547
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    References listed on IDEAS

    as
    1. Gentili, Elena & Masiero, Giuliano & Mazzonna, Fabrizio, 2017. "The role of culture in long-term care arrangement decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 186-200.
    2. Pauly, Mark V, 1990. "The Rational Nonpurchase of Long-term-Care Insurance," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 153-168, February.
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