Who is more important, parents or children? Economic and environmental factors and health insurance purchase

Abstract

The existing research indicates that insurance demand is affected by the policyholder’s occupation, family economy, urbanization level, and insurance coverage. Using micro data of insurance purchase at the individual level, this study investigates the influence of economic and environmental factors on the priorities of health insurance purchase decision. The results reveal that the more developed the economy and the more financial knowledge people possess, the more the latter tend to prioritize health insurance for their children. Furthermore, the study investigates the influence of air pollution on the decision to purchase health insurance. If the air pollution level is high, policyholders prioritize obtaining insurance for their children. Our research on the order of insurance purchase indicates that Chinese families have a lack of support from their children, and the function of family pension is gradually weakening. Our research also reveals that families are willing to spend money on the insurance of their children. Therefore, to solve the problem of health and old-age security for the elderly, it is more effective to promote health insurance by considering families as a unit