'Children and People in Their 70s' Medical Expenses Surge Annually... Focus on Children's and Health Insurance

On the 5th, Children's Day, the 8th Seoul Fairy Tale Festival was held in front of Children's Grand Park in Gwangjin-gu, Seoul, where the honor guard, Air Avatar, and citizens participated in the Wagle Wagle parade. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Oh Hyung-gil] It has been revealed that medical expenses for the elderly and children are increasing every year. In response to this trend, insurance companies are launching various children’s and filial insurance products in May, the 'Family Month.'

According to the insurance industry on the 3rd, the economic burden is increasing due to the rise in medical expenses borne by households.

Looking at the 2018 age-specific disease statistics conducted by the Health Insurance Review and Assessment Service, the number of major diseases per person was highest among those aged 70 and over, at 7.77.

Next were those in their 60s, with 6.69. Notably, children under 9 had 6.39, which was higher than teenagers (4.29) and people in their 20s (4.10).

Accordingly, comparing the medical treatment status of children in elementary school and younger from 2009 to 2018, the number of patients decreased by an average of 1.8% annually, but medical expenses increased by 3.3%.

During the same period, medical expenses for those aged 50 and over, especially those aged 70 and above, increased at an average annual rate of 6.8%, with per capita medical expenses being the highest at 4,787,000 KRW.

In response, life insurance companies have extended the coverage period for children’s insurance up to 100 years old and increased the subscription age for filial insurance up to 80 years old.

Children’s insurance provides various coverages such as surgery for congenital anomalies, hospitalization for low birth weight infants, pediatric ophthalmology and dental care, accidental fractures, burns, ADHD, precocious puberty, and also covers kidnapping and abduction, school zone traffic accidents, as well as rhinitis and sinusitis caused by yellow dust and fine dust, and certain legally designated infectious diseases.

Reflecting the aging of pregnant women, the maximum subscription age for mothers has been extended to 47 years, and coverage for pregnancy-related medical expenses has been expanded to include miscarriage, childbirth and postpartum edema, proteinuria, and postpartum complications.

Filial insurance products guaranteeing coverage up to lifetime have been launched for the elderly, and even those with hypertension or diabetes can subscribe without a health checkup by passing only three questions.

A life insurance company official said, "A point to be careful about when the elderly subscribe to insurance is that, especially for dementia insurance, if the insured is diagnosed with dementia and has difficulty expressing themselves, they may not be able to notify the insurance beneficiary. Therefore, it is necessary to designate a proxy in advance to reduce uncertainty in receiving insurance payments."

This content was produced with the assistance of AI translation services.