| In China,our aging population and the elderly who cannot take care of themselves are increasing.With the continuous rise of inflation rate and medical expenses,long-term care insurance has become a preferred insurance for elderly families in recent years.According to the insurance contract,insurance companies provide economic compensation to the incapacitated insured to pay for the expensive care and treatment costs.However,there are only a few commercial long-term care insurances in China,and they mainly take individuals as the insured.While long-term care is usually carried out in families in China and the source of funds is common property of husband and wife.Therefore,how to design and price the dual life long-term care insurance for husband and wife is an important issue to be solved urgently.Using the CHARLS data(2013-2015),this study improves personal health state transition process,and defines six dual life health states.After establishing ordered logistic model,this study calculates dual life health state transition probability matrix,and analyzes the influence of key factors,contributing to developing insurance for different types of elderly couples.Then,this paper selects the multi-state Markov model to calculate the actuarial fair rate of dual life long-term care insurance in China,and proves that compared with the single person form,dual life long-term care insurance is more conducive to reduce the premium in the vast majority of cases,which has important development significance.To solve the problem of high premiums,this paper combines reverse mortgage of the couple’s shared real estate with the long-term care needs of both,then calculates the long-term care annuity of the linked products.Therefore,the elderly couple can enjoy the long-term care security brought by the shared real estate,which is closer to the actual situation.After the sensitivity analysis of the long-term care annuity,it is found that the fluctuation of housing price and interest rate has significant impact on the long-term care annuity,and the impact gradually weakens with the increase of the age of insurance,indicating that the insurance company should pay more attention to the housing price risk and interest rate risk when developing linked products.Long-term care insurance designed for the long-term care needs of elderly couples is more in line with the needs of China’s national conditions,which can effectively improve the quality of life of the elderly,and is conducive to the stability and harmony of family and society,and has important research significance. |
