Other Insurance Sales Decline, but Dementia and Long-Term Care Coverage Booms

New premiums paid by subscribers to dementia and long-term care insurance policies surpassed 95.8 billion won in the first half of this year, up nearly 50 percent from two years ago. While other insurance products languish, dementia care coverage is thriving due to rapid population aging. The saying "there is no filial child at the bedside of a long illness" is becoming reality.

As of last year, there were 960,000 dementia patients in South Korea, a figure expected to reach 1.77 million by 2040. The number of elderly people with limited mobility due to cancer, joint disorders, and other conditions is also growing every year.

Insurers are revamping their product lineups, with a wave of new offerings hitting the market. Some products now cover everything from testing to drug treatment to nursing care, while others allow policyholders to convert part of their contract into an annuity if they never develop dementia.

"Recently, insurance terms have been trending longer, ranging from age 80 up to 100," said Lee Joo-yeol, a professor of health administration at Namseoul University. "This reflects both rising average life expectancy and the demands of consumers."