Informal Care: A Literature Review and Simulation Model of the Economic Value and Financial Impact on Healthcare Insurance

Abstract

Informal care is mainly provided by family, close relatives, friends, and neighbours. It is a common form of long-term care, which can reduce medical expenditures, and is often preferred to formal care. The demand for informal care will undoubtedly continue to rise due to the increasing aging population and the associated chronic (multi)morbidity. However, socio-economic changes - in particular an increase in female labour force participation, the increasing number of divorces, the decline in birth rate, and family structure changes such as children living far away - may limit the availability of informal care in the future.