"Dementia Costs Increasing, Need to Reduce Burden with Dementia Care Insurance"

Source: Korea Life Insurance Association

[Asia Economy Reporter Changhwan Lee] The Life Insurance Association announced on the 1st that as the aging of our society accelerates, dementia-related costs are also increasing significantly, emphasizing the need to actively utilize life insurers' dementia care insurance to reduce caregiving expenses.

According to the association, as of 2020, among approximately 8.13 million elderly people aged 65 and over, the estimated number of dementia patients was about 840,000 (10.2%). This number is expected to rise to about 1.36 million (10.5%) in 2030, about 2.17 million (12.6%) in 2040, and exceed about 3 million (15.9%) by 2050.

The annual management cost per dementia patient increased from 18.51 million KRW in 2011 to 20.61 million KRW in 2020. Since the average monthly income of elderly couple households is lower than that of general households, the relative economic burden is even greater.

The association stressed that due to the aging population structure and the increase in single-person households, individuals need to prepare for their own elderly care. In particular, as dementia management costs are rising and household burdens are increasing, consumers need to prepare in advance through life insurers' dementia care insurance.

Currently, life insurers are selling various dementia and caregiving insurance products. The main features of these products include coverage by dementia stages, support for caregiving and living expenses, premium burden reduction products, operation of dementia prevention and care programs, and various special riders.

For products that provide coverage by dementia stages and support for caregiving and living expenses, they offer broad coverage from mild dementia, which has a high incidence rate, to severe dementia, while also supporting caregiving or living expenses due to dementia and other diseases or accidents.

Premium burden reduction products reduce consumers' premium burdens through premium payment waivers upon diagnosis of severe dementia, no-surrender or low-surrender refund-type products.

Dementia prevention and care programs are characterized by providing dementia care services differentiated before and after dementia onset or operating dementia prevention programs through partnerships with digital therapeutics developers.

Additionally, life insurers operate special riders that refund already paid main contract premiums upon diagnosis of certain diseases or severe dementia, strengthen coverage related to long-term care, and expand coverage through special riders for severe Alzheimer's, Parkinson's disease, and others.

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