Behavioral determinants of long-term care insurance acceptance in Malaysia

Long-term care insurance (LTCI) guards the welfare of elderly individuals against the process of aging. The current research explores what determines Malaysians’ uptake of LTCI, focusing on the roles of financial literacy and trust and the mediating role of attitude. Facilitating conditions like the legislative/regulatory framework, information dissemination, and health system readiness were suspected to have a moderating role. Using partial least squares structural equation modelling (PLS-SEM) and survey data from a sample of 356 participants, the research finds attitude to be a key driver of LTCI acceptance, where financial literacy and trustfulness have a significant effect on forming this attitude. Facilitating conditions neither weaken nor alter the direction of the LTCI acceptance process. Policymakers are challenged to implement financial literacy programs and consumer protection legislations to facilitate confidence building and promote LTCI adoption. The findings provide initial signals of the potential for LTCI in Malaysia, balancing the country’s aging population and the current dearth of LTCI in its insurance market.