Long-term Care Insurance Needs Of The Empirical Analysis

Long-term care insurance for the elderly will become a serious social problem as the society is aging rapidly. The primary purpose of this research is to examine how much the general public knows about the long-term care insurance, which can provide evidence useful for the government in developing and implementing policies that prompt the buildup of long-term care system. By emphasizing on the future demand analysis of long-term care insurance, we also intend to provide valuable evidence for the life insurance industry in the development and marketing of the long-term care insurance. This article is based on a survey of residents who have purchased life insurance from three social-economically representative regions of Jiangsu province: Su Zhou, Yang Zhou and Huai A. Data are processed using the SPSS software and a Logit model is estimated. Our basic findings include:1) The general public has reached a high degree of consensus on the emerging issue of aging society and its economic consequence to individuals, households and the society as a whole. However, the general public has very limited knowledge about the long-term care insurance.2) Almost 50% of the surveyed agreed upon this: If the Chinese government plans to adopt a national long-term care system in the future, the system should be funded through individual long-term care insurance accounts.3) The majority of the respondents are willing to fund the individual long-term care by purchasing commercial insurance and saving money in bankaccounts.4) An individual's willingness to purchase long-term care insurance mainly depends on the individual's profession and education. Other factors include current housing conditions and monthly living expenditures, etc.5) Most of those who are willing to purchase long-term care insurance agreed on this: the best long-term care insurance should be funded by individual with one primary beneficiary; the reasonable and affordable long-term care insurance premium should be less than 1000 RMB per year.6) Three reasons why people are not willing to purchase long-term care insurance in the order of its popularity (with the first being the most popular): First: no need to purchase long-term care insurance if one has been covered by social insurance; Second: no need to purchase long-term care insurance if one has had medical insurance or terminal illnesses insurance; Third: can not afford it .