The Life Care Annuity: An Empirical Examination of Premium Reduction Effect
Date Issued
2014
Date
2014
Author(s)
Chen, Yi-Chun
Abstract
With increasing life expectancy and decreasing birthrate, the problem of rapidpopulation aging is getting worse.Although the continuous improvement of medical technology makes comprehensive medical care more available to elder people, long-term caring problems deviated from chronic diseases and disability are still issues worth paying attention to. Due to the fact that the fees for long-term caring are expensive, potential financial risks generated from the demand of long-term caring has become one of the risks that people in Taiwan have to confront.
Although long-term care insurance is one of the crucial instruments to hedge the risk, its expensive premium and the strict underwriting make it hard to meet up large
potential needs. Meanwhile, the severe adverse selection problem also make life annuity market exists same problem.
In this dissertation, we separate population into different risk groups and estimate the transition probabilities in and out of disability states according to numerous demographic and health characteristics. This allows us to conduct analyses of disability and mortality risks across a number of dimensions. We find that it is less expensive to
purchase life care annuity, which is an insurance product combining long term care insurance and life annuity together, than to consume long term care insurance and life
annuity separately.
Subjects
長期照護保險
年金保險
生存照護年金
馬可夫鏈
降低保費
SDGs
Type
thesis
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