Tag: life time health
Abstract This paper explores life insurance holdings from a general equilibrium perspective. Drawing on the data explored in Chambers, Schlagenhauf, and Young (2003), we calibrate an overlapping generation’s life cycle economy with incomplete asset markets to match facts regarding the uncertainty of income and demographics. We then estimate that life insurance holdings for the purpos…
The brief’s key findings are: Health care costs loom as a major risk for retirees, with nursing home care as the real wild card. A typical couple at age 65 can expect to spend over its remaining lifetime: $197,000 with a 5-percent risk of exceeding $311,000, excluding nursing home care; or $260,000 with a 5-percent…
