"My Mother Is Missing"... 200,000 Won Compensation Offered

The Era of 1 Million Dementia Patients

Insurance Companies Take Action

Insurance companies are unveiling a series of dementia and caregiving insurance products and services. This is interpreted as a strategy to secure a leading position in the market ahead of the era of 1 million dementia patients.

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Heungkuk Fire & Marine Insurance "First-time Payment of 200,000 Won to One Guardian in Case of Disappearance"

According to the financial sector on September 9, Heungkuk Fire & Marine Insurance obtained a six-month exclusive usage right for its special policy covering damages from missing reports of dementia patients from the General Insurance Association's New Product Review Committee on September 1. This policy pays 200,000 won as a one-time benefit to a single guardian if the insured, who has purchased dementia insurance, is diagnosed with dementia and goes missing. This is the first time coverage has been offered for the disappearance of dementia patients. Last year, the number of missing dementia patients was 15,500, a 26% increase compared to 2020.

Hana Insurance "Weekly Dementia Progress Delay Education, Up to 48 Sessions Annually"

Hana Insurance also obtained a six-month exclusive usage right last month for an insurance product that provides on-site cognitive training by a professional instructor to subscribers diagnosed with mild cognitive impairment, the stage just before dementia. If a policyholder of the Hana The Next Dementia Caregiving Insurance adds this special rider, they can receive brain training-based education once a week, up to 48 times per year upon diagnosis. The product was developed to combine practical in-person services with emotional support, aiming to slow the progression of dementia. In July, Hana Insurance signed a memorandum of understanding (MOU) with Daekyo New Life, a senior life solutions company, regarding this service.

KB Insurance "Annual Coverage for Dementia Severity Assessment Test"

KB Insurance also obtained a three-month exclusive usage right earlier this year for the new rider "Clinical Dementia Rating (CDR) Scale Test Support Fee," which was added to the "KB Golden Care Caregiving Insurance." The CDR is a representative test for assessing dementia severity, and this rider covers the cost of the test once per year. The CDR test fee ranges from 50,000 to 200,000 won.

General Insurance? Life Insurance?

Combined Products Are on the Rise

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Dementia and caregiving insurance has traditionally been the main market for general insurance companies, but recently, life insurance companies have also been launching related products and services to secure market share. Life insurers are introducing a series of ultra-long-term products that combine dementia and caregiving riders with whole life insurance or add annuity conversion features.

MetLife Life Insurance "Premiums and Payouts in US Dollars"

On September 1, MetLife Life Insurance launched the "(Non-participating) Everyone's Dollar Whole Life Insurance (No Surrender Value Type)." This dollar-denominated insurance product allows both premium payments and insurance payouts to be made in US dollars. Customers can add up to 30 new health riders, including coverage for dementia, cancer, and cerebrovascular diseases, according to their needs.

Kyobo Lifeplanet Life Insurance "Refund of Principal plus Interest if No Dementia After Full Payment"

In March, Kyobo Lifeplanet Life Insurance became the first digital-exclusive insurer to launch dementia and caregiving insurance. The policy covers a wide range of conditions from mild to severe dementia, with coverage lasting up to age 110. If, after paying premiums for 20 years, the insured's parents do not develop dementia, the principal amount of the premiums paid, plus a certain level of interest, can be refunded tax-free.

KB Life "Strengthening Dementia Education Services"

KB Life has started to strengthen its dementia education services. The company announced the previous day that it would expand the operation of "KB Star Wealth Manager," a premium outbound organization for high-net-worth clients, and launched a senior education course on dementia. In July, KB Life collaborated with the Gangnam-gu Dementia Relief Center to provide dementia partner training to 100 KB Star Wealth Managers and 60 staff from the New Business Promotion Division. They have also been certified as official dementia partners by the Ministry of Health and Welfare.

The Era of 2 Million Is in Sight

Dementia-Related Market Growing Rapidly

As life and general insurance companies aggressively introduce dementia and caregiving insurance products, the related market is expanding. According to statistics from the Insurance Development Institute, the first-year premiums for dementia and caregiving insurance from both life and general insurers in the first half of this year totaled 82.1 billion won, reaching 83% of last year's total (96.3 billion won). The first-year premium is a key indicator that measures new inflows and sales trends in the insurance market, representing the initial premium payment by new customers.

As South Korea enters a super-aged society, with the proportion of the population aged 65 and over surpassing 20%, there is a growing movement to prepare for the increasing financial burden of dementia-related costs. According to the Ministry of Health and Welfare, the number of dementia patients in Korea is expected to reach 970,000 this year, surpass 1 million in 2026, and exceed 2 million by 2044. The number of people diagnosed with mild cognitive impairment, who are at high risk of developing dementia, is projected to reach 2.98 million this year and approach 4 million by 2033.