Longevity Risk Financing－The Estimation of Lifetime Annuity Benefit with Reverse Mortgage

• Main Authors: Kuan-Yu Chen, 陳冠瑜
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/52197118533348083949

碩士 === 逢甲大學 === 風險管理與保險研究所 === 98 === The double impact, growing longevity and falling fertility rate, grows the ageing of population. As a result, it produces the problem of senior economic security. The elder house owners who are lack of cash can use reverse mortgages to unlock home equity into cash to cover daily life and medical health cost. The pricing model of reverse mortgage introduced by Tse (1995) is the main framework of this study. To calculate the annuity payment that seniors can receive and the income replacement rate by reverse mortgages after retirement, further measure the influence about changing the loan-to-value ratio and improving mortality. The ultimate consequence shows that men are higher than women in income improvement. And the age, loan-to-value ratio and mortality are positive correlations. In addition, the high house value in the metropolitan area has a better effect.