Medical Expenses Burden in Old Age Three Times Higher Than in Middle Age... "Prepare with Coverage Insurance"

Life Insurance Guarantee Insurance
Focused Coverage on Severe Diseases, Dementia, etc. with Simple Screening

[Asia Economy Reporter Ki Ha-young] As the elderly population and per capita elderly medical expenses increase every year, advice has emerged that the burden of medical expenses in the era of longevity with illness should be reduced through various protection-type insurance products offered by life insurance companies.

According to the '2019 Health Insurance Statistical Yearbook' recently released by the Health Insurance Review and Assessment Service on the 8th, the average annual medical expense per person aged 65 and over in 2019 was 4.91 million KRW, which is 2.9 times the average medical expense of 1.68 million KRW per person for the entire population.

The combined average medical expense for a two-person couple household is 9.82 million KRW. Considering the annual income and living expenses of this age group, it is pointed out as a factor that exacerbates economic poverty.

Statistics related to elderly medical expenses, such as nursing care benefits through health insurance, also show that the cost and proportion of elderly nursing care benefits have been increasing every year. In 2019, the medical expenses paid relative to health insurance premiums were 7.04 times, indicating not only the primary burden of public insurance but also a continuous increase in the total personal medical expenses, including co-payments and non-covered expenses.

Looking at the average monthly medical expenses covered by the National Health Insurance, the elderly bear about three times the medical expense burden compared to middle age.

The Life Insurance Association suggested utilizing various protection-type insurance products from life insurance companies to prepare for elderly medical expenses. Life insurance companies’ protection products for old age apply simplified underwriting with minimal disclosure items, allowing even those with pre-existing conditions to easily enroll. They also strengthen coverage for major causes of death among Koreans, such as cancer, cerebrovascular diseases, and heart diseases, and provide coverage for various diseases frequently occurring in the elderly, such as hypertension and diabetes, through main contracts and riders.

In addition to dementia, comprehensive coverage is provided through main contracts and riders for senior diseases mainly appearing in the elderly, such as Lou Gehrig’s disease and Parkinson’s disease. Furthermore, they support diagnosis funds and nursing care funds due to dementia and severe diseases, and also provide a fixed monthly living allowance. Recently, through healthcare services gaining attention, various premium services are offered, including pre- and post-health management, housekeeping assistance, and face-to-face psychological counseling services.

A representative of the Life Insurance Association said, "To prevent poverty in old age due to medical expenses and to enjoy a happy old age as life expectancy increases, it is necessary to prepare firmly for elderly medical expenses from youth and middle age." He added, "Life insurance companies are reducing the burden of medical expenses in the era of longevity with illness through various protection benefits and providing protection-type insurance products that are easy to enroll in even in old age to consumers."