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Bađun, Marijana; Krišto, Jakša
Journal of aging & social policy, 11/2021, Volume: 33, Issue: 6Journal Article
Due to the government's modest role in taking care of aging adults, as well as a rapidly aging demographic and a high share of home ownership, Croatia is an interesting case for private long-term care (LTC) financing. This study uses a qualitative survey through interviews (N = 21) with specialists from the financial industry to examine the prospects for developing LTC insurance (LTCI) and reverse mortgages. The most important obstacles to developing reverse mortgages and LTCI are an emotional attachment to real estate and strong family ties. However, inadequately regulated and nontransparent housing and LTC markets, the weak rule of law, poor financial literacy, low trust in financial institutions, and the perception of government as the savior of last resort pose additional challenges. Combined insurance products with clearly defined benefits are the products showing the most market potential.
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