@article {10643,
	title = {Financial Sophistication and Private Long-term Care Insurance Purchase Decision},
	journal = {Journal of Health Care Finance},
	year = {2020},
	type = {Journal},
	abstract = {Despite significant financial risk associated with long-term care expenditure, the market for private long-term care
insurance (LTCI) remains severely limited. Understanding the sources of such under-insurance is important to
evaluate any potential reforms to strengthen the private LTCI market so that it becomes a significant source of
financing long-term care services and supports for the elderly. Considering LTCI as a form of retirement planning,
one would expect an individual{\textquoteright}s financial literacy to affect their LTCI purchasing decision. Implementing an
instrumental variable approach, the current study isolates the causal impact of financial sophistication on optimal
decision to purchase a private LTCI coverage. Consistent with the literature on retirement planning, results show that
individuals with more sophisticated financial knowledge were likely to purchase a private LTCI coverage. },
	keywords = {financial sophistication, Long-Term care insurance purchase, Retirement Planning},
	url = {http://healthfinancejournal.com/index.php/johcf/article/view/208},
	author = {Rashmita Basu}
}
