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Don't They Care? Or, Are They Just Unaware? Risk Perception and the Demand for Long‐Term Care Insurance
Author(s) -
ZhouRichter Tian,
Browne Mark J.,
Gründl Helmut
Publication year - 2010
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/j.1539-6975.2010.01362.x
Subject(s) - long term care insurance , actuarial science , business , perception , long term care , medicine , psychology , nursing , neuroscience
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.