From Early-Stage Dementia to Long-Term Care... Life Insurers Expand 'Care Services'

Expanded Living Expense Benefits by Dementia Stage
Strengthening Coverage for Treatment and Caregiving
"Need to Link Care Technologies Beyond Cash Payments"

The life insurance industry is expanding its coverage to ease the long-term caregiving burden on people with dementia and their families. Alongside paying benefits upon a dementia diagnosis, insurers are broadening their role by providing ongoing coverage for treatment and caregiving costs and managing patients’ health and assets.

According to the insurance industry on October 28, life insurers have recently been breaking down their coverage in greater detail, from early dementia treatment to caregiving. They are offering products that pay living expenses according to the progression of dementia or cover caregiving costs over an extended period, while also strengthening cognitive health management using artificial intelligence (AI) and asset management services for people diagnosed with dementia.

In particular, life insurers are extending coverage periods to match the progression of dementia and changing their product structures so customers can choose the caregiving coverage they need. NH NongHyup Life Insurance's "Olwonderful Memory Safe Dementia Insurance" pays monthly living expenses for up to 10 years to policyholders diagnosed with mild dementia, if they have enrolled in the relevant rider, and pays benefits for life for moderate or severe dementia. It also provides coverage for targeted drug therapy used in the early stages of dementia. If the policyholder does not develop dementia after paying all premiums, the accumulated amount can be converted into an annuity, subject to certain conditions, and used for retirement funds.

NH NongHyup Life Insurance has also separated its nursing care and caregiving coverage into individual riders under its "Olwonderful Caregiving Safe Long-Term Care Insurance," allowing customers to choose the coverage they need. It has enhanced coverage for home-care benefits and extended the coverage period for using a caregiver during hospitalization to up to 365 days.

Hanwha Life offers "Dementia Care Plus Insurance," which covers treatment and caregiving from the early stages of dementia. It covers daily fees for using a caregiver during hospitalization for up to 365 days, and part of the policy can be converted into an annuity or savings. Separately, it has enhanced coverage for home-care and facility benefits under long-term care through its "H Dementia Care Insurance."

In August, Hanwha Life also launched "Dementia-Safe MMT (On-Demand Deposit and Withdrawal Trust)." If customers decide in advance how funds should be disbursed while they are healthy, a trust manager can, after a diagnosis of moderate or more severe dementia, file claims for hospital and nursing care expenses on their behalf, up to the balance of the trust. This allows funds needed for treatment and care to be used even if the patient's decision-making capacity declines.

Services that support customers and their families in their daily lives are also emerging. NH NongHyup Life Insurance is piloting its "Safe Care Call" service, in which professional nurses call elderly parents directly to check on their meals, sleep, medication, and cognitive health. The results of the calls are shared with their children, and, when needed, the service can be connected to hospital appointments or health checkups. In particular, AI is used to analyze speech rate, vocabulary, and response patterns during calls and track changes in cognitive health. The company plans to officially launch the service in early 2027, incorporating the results of the pilot, and expand its support to include services such as nurse accompaniment to medical appointments.

Experts say that, in an era of super-aging, the life insurance industry should go beyond the financial protection it has traditionally provided and strengthen links between insurance and care services. Kim Sang-dong, a research fellow at the Korea Insurance Research Institute, said, "A system that pays a fixed insurance benefit only after a diagnosis or a long-term care grade assessment is not enough to adequately support actual care pathways, such as care facilities, in-home care, and accompaniment to hospitals and clinics." He added, "We need to consider complementing the cash-benefit-centered structure by connecting people with the care services and technologies for older adults they need after insurance benefits are paid."

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