What Determines Whether or Not Individuals Purchase Long Term Care Insurance

As the U.S. population continues to age due to medical advancements and the aging of the largest generation in the history of the U.S. (baby boomers), the number of people being placed into long-term care facilities has significantly increased. However, the percentage of people with long term care insurance is small. Research conducted in the early 2000s looks at variables such as availability of children, risk aversion, health status, age, having medicaid, wealth, among other variables that describe personal attributes, to explain why the market is so small. This paper will use research from the Health and Retirement study to determine whether or not having a living spouse affects a respondent’s decision to purchase long term care insurance