How much risk is mitigated by LTC Insurance?: A case study of the public system in Spain

• Guillén, Montserrat ^[1] ; Comas-Herrera, Adelina ^[2]
  1. [1] Universitat de Barcelona (España)
  2. [2] London School of Economics (Reino Unido)
• Localización: Documentos de trabajo ( XREAP ), Nº. 7, 2011
• Idioma: inglés
• Enlaces
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• Dialnet Métricas: 1 Cita
• Resumen

  • We present a methodology that allows to calculate the impact of a given Long-Term Care (LTC) insurance protection system on the risk of incurring extremely large individual lifetime costs. Our proposed methodology is illustrated with a case study. According to our risk measure, the current Spanish public LTC system mitigates individual risk by more than 30% compared to the situation where no public protection were available. We show that our method can be used to compare risk reduction of alternative LTC insurance plans.