Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237388 
Title (translated): 
Complementing Tax-financed Long-term Care with Private Insurance
Year of Publication: 
2020
Series/Report no.: 
ETLA Report No. 98
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract (Translated): 
Many elderly people in Finland could increase they standard of living and receive more freedom of choice regarding long-term care by releasing part of their housing equity. The possibility to purchase reasonably priced life annuities and long-term care insurance would increase the benefits of housing equity release. However, there is virtually no market for such insurance in Finland. This report illustrates the benefits of life annuities and long-term care insurance, provides example of actuarially fair insurance pricing, and describes the conditions for this market to emerge. It argues that the government should support the emergence of an insurance market by clarifying the public welfare promise related to old age care and by promising not to seize private pension and long-term care insurance payouts e.g. via higher user fees for publicly provided long-term care.
Subjects: 
Long-term care insurance
Life annuities
Ageing
JEL: 
H24
G22
Document Type: 
Research Report

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