The Impact Of Major Illness-Insurance Purchase On Household Debt

Since 2008,the debt ratio of the household sector has become higher and higher,and the growth rate of residents' deposits has fallen sharply.It has dropped from 18% in 2008 to 7% in 2018,and the income of households in recent years.The growth rate has gradually slowed down,which has caused people's household debt problems to receive more and more attention.Although the existing literature has studied the factors affecting household debt and household over-indebtedness from the micro level,it has not considered the issue of household debt from the perspective of major illness insurance.In the case of major illness insurance research,the existing literature studies institutional policies,coverage,and health insurance funds,and few scholars have linked them to household liabilities in family welfare issues.Over-indebted households mean that in the future,the household sector is likely to reduce economic income and reduce family welfare.However,as the basis for risk protection in the family sector,major illness insurance can compensate for the economic losses in the family sector and reduce the family's catastrophic medical expenses.Make up for the loss of family welfare.Based on the 2013 China Household Financial Survey Data(CHFS),this paper finds that the probability of holding a household with a debt is 33%.When the debt-to-asset ratio is greater than 75%,it is found that 3% of households in the country are already excessively indebted.Using the Probit model and the Tobit model,it is found that the purchase of major illness insurance is negatively correlated with whether or not there is a liability and whether there is excessive debt,that is,households that purchase major illness insurance can reduce the possibility of holding liabilities and excessive debt in the family sector,and Households with poor health,middle-income families,high heads of households,and high school secondary school education in the heterogeneity test are more likely to reduce their households' own liabilities and over-indebted liabilities after purchasing medical insurance for major illnesses.Possibility,finally passed the robustness test,and found that the regression results in this paper are significant and robust.This paper provides a new solution to reduce the possibility of households holding liabilities and holding excessive debts.It also enriches the economic value of major medical insurance,and improves and improves China's major medical insurance policies,compensation mechanisms and fund raising in the future.And other aspects provide theoretical support.