Pricing a contract of linking home reversion plan and long-term care insurance via the principle of equivalent utility

Pricing a contract of linking home reversion plan and long-term care insurance via the principle... Home reversion plans allow homeowners to tap into the value of their house and live in it until their death. The article considers a contract linking home reversion plan and long-term care insurance, which could better prepare seniors for their retirement and long-term care needs. Here, we assume the product exposes an insurer to two risks: the uncertainty of nursing care cost from disable, and the home value decreasing in real estate markets at the time of sale. Because the market is incomplete, we apply the principle of equivalent utility to price the contract under exponential utility. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Quality & Quantity Springer Journals

Pricing a contract of linking home reversion plan and long-term care insurance via the principle of equivalent utility

Loading next page...
 
/lp/springer_journal/pricing-a-contract-of-linking-home-reversion-plan-and-long-term-care-xxrf44prlo
Publisher
Springer Netherlands
Copyright
Copyright © 2010 by Springer Science+Business Media B.V.
Subject
Social Sciences; Methodology of the Social Sciences; Social Sciences, general
ISSN
0033-5177
eISSN
1573-7845
D.O.I.
10.1007/s11135-009-9308-x
Publisher site
See Article on Publisher Site

Abstract

Home reversion plans allow homeowners to tap into the value of their house and live in it until their death. The article considers a contract linking home reversion plan and long-term care insurance, which could better prepare seniors for their retirement and long-term care needs. Here, we assume the product exposes an insurer to two risks: the uncertainty of nursing care cost from disable, and the home value decreasing in real estate markets at the time of sale. Because the market is incomplete, we apply the principle of equivalent utility to price the contract under exponential utility.

Journal

Quality & QuantitySpringer Journals

Published: Jan 14, 2010

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off