Empirical evidence suggests the existence of a positive relationship between fear of sickness (FS) - as measured by the level of future utility lost when sickness occurs - and the level of effort to prevent the occurrence of sickness. By looking theoretically at this issue, we develop new...

This chapter surveys the economic literature on prevention and precaution. Prevention refers as either a self-protection activity – i.e. a reduction in the probability of a loss – or a self-insurance activity – i.e. a reduction of the loss –. Precaution is defined as a prudent and...

The demand for long-term care (LTC) insurance depends – among other things – on the relationship between potential policyholders and their relatives since the latter may informally provide LTC that is otherwise purchased on the market. The combined effects of intra-family moral hazard and...

Family considerations are known to influence the decision to buy long-term care (LTC) insurance. This paper uses a Swiss survey to identify the characteristics of individuals willing to purchase LTC insurance, either to protect their children's bequest or because they cannot rely on family for...

In this work, the notion of risk premium is applied to a situation for which the individual is confronted with a risk of illness. This health risk can breed a risk of wealth via the recourse to health care. Following the nature of health care undertaken, different premiums are defined which...