Narrow framing and long‐term care insurance

TitleNarrow framing and long‐term care insurance
Publication TypeJournal Article
Year of PublicationForthcoming
AuthorsGottlieb, D, Mitchell, OS
JournalJournal of Risk and Insurance
ISSN Number0022-4367
KeywordsFinances, Long-term care insurance
Abstract

We propose a model of narrow framing in insurance and test it using data from a new module we designed and fielded in the Health and Retirement Study. We show that respondents subject to narrow framing are substantially less likely to buy long-term care insurance than average. This effect is much larger than the effects of risk aversion or adverse selection, and it offers a new explanation for why people underinsure their later-life care needs.

URLhttps://onlinelibrary.wiley.com/doi/abs/10.1111/jori.12290https://onlinelibrary.wiley.com/doi/pdf/10.1111/jori.12290https://onlinelibrary.wiley.com/doi/pdf/10.1111/jori.12290https://onlinelibrary.wiley.com/doi/full-xml/10.1111/jori.12290
DOI10.1111/jori.12290
Short TitleJournal Risk and Insurance
Citation Key10166