A STOCHASTIC ANALYSIS OF INSURANCE CONTRACT FOR REVERSE MORTGAGE WITH LONG-TERM CARE: A REVIEW

摘要

Reverse mortgage (abbreviated, RM) is a financial instrument available to the cash-poor but house-rich senior citizens. The RM helps the seniors to convert their home equity into cash to meet their living expenses and/or pay premiums for long-term care (LTC) insurance, while continuing to live in their house. Reverse mortgage has attracted extensive attention from academic circles and governments. This article gives a comprehensive overview of our work about reverse mortgage and the insurance product integrating RM with LTC; this mainly includes the following: the demand of the reverse mortgage; the risk of the reverse mortgage; the pricing of the reverse mortgage; the law and regulation relevant to the reverse mortgage; the reverse mortgage financing the long-term care insurance. Particularly, we review our recent work , which focus on the pricing of RM involved a pair of couples and the pricing of insurance product integrating RM with LTC involved a single insured or a elderly couple.