AWARENESS OF AND WILLINGNESS TO PAY FOR DISABILITY INSURANCE IN TAIWAN

Abstract

Disability insurance in Taiwan is covered by social insurance benets provided by the government and by commercial insurance benets. Taiwanese life insurance companies have offered disability insurance packages for decades to provide security for those unable to work. This study explored the awareness of, understanding, and willingness to pay for disability insurance in Taiwan. Aquestionnaire was designed and distributed to 500 individuals insured by a single Taiwanese insurance company to investigate the factors that inuenced their purchase of disability insurance and their willingness to pay for disability insurance. Statistical results showed 13.5% of respondents had purchased disability insurance, 69.3% expressed willingness to pay, and 52.5% were unaware of disability insurance. Hypothetical provision of long-term care insurance was not likely to affect willingness to pay for disability insurance. There is much room for future development in terms of the willingness to pay for disability insurance, as it was not translated into actual purchase among the participants.