The need for individuals to prepare for their own elder care is becoming increasingly urgent. (Image courtesy of Kobiz Media)
SEOUL, Sept. 14 (Korea Bizwire) – As South Korea grapples with an unprecedented pace of population aging, coupled with trends towards longer life spans with chronic illnesses and an increase in single-person households, the need for individuals to prepare for their own elder care is becoming increasingly urgent.
On September 12, the Korea Life Insurance Association (KLIA) emphasized the importance of dementia care insurance and pre-existing condition insurance as effective tools for preparing for a super-aged society.
The association urged consumers to compare and select products suitable for their individual circumstances to reduce the economic burden in their later years.
According to Statistics Korea, as of 2023, there were 9.44 million citizens aged 65 and over, accounting for 18.2% of the total population.
It is projected that this demographic will surpass 10 million next year, pushing South Korea into the category of a “super-aged society” where more than 20% of the population is elderly.
The rapid aging of the population and changes in family structures are steadily increasing the demand for welfare services for the elderly at a national level.
The National Health Insurance Service reported that the number of individuals recognized for long-term care insurance in 2023 was approximately 1.1 million, representing 11.1% of the population aged 65 and over. This marks a significant increase from 5.8% in 2012.
The accelerated aging trend is also contributing to a rise in the incidence of life-threatening diseases such as cancer.
National Cancer Registry statistics from the Ministry of Health and Welfare reveal that in 2021, there were 2.43 million people living with cancer in South Korea, with 1.19 million of those aged 65 and over — meaning one in seven seniors was affected by the disease.
The data suggests that by the average life expectancy of 83.6 years, an individual’s likelihood of developing cancer reaches 38.1%.
The accelerated aging trend is also contributing to a rise in the incidence of life-threatening diseases such as cancer.(image: Korea Bizwire)
Recent advancements in medical technology and increased rates of health screenings have led to improved cancer survival rates.
As of 2021, the 5-year relative survival rate for cancer patients diagnosed in the prior five years was 72.1%, an increase of 6.6 percentage points compared to 65.5% a decade earlier (2006-2010).
However, the financial burden on patients remains significant due to ongoing regular check-ups and additional surgery costs for recurrence or metastasis.
Dementia is another disease that is difficult to avoid in old age.
The estimated annual management cost per dementia patient has increased by approximately 19.9%, from 18.51 million won in 2010 to about 22.2 million won in 2022.
Given that elderly couples typically have lower monthly incomes compared to the general population, the relative economic burden is expected to be even more substantial.
The KLIA noted, “There is a growing number of consumers seeking insurance products to reduce the burden of elder care costs, including the continuously increasing expenses for dementia management. Consumers can receive various coverage and services through dementia care insurance and pre-existing condition insurance sold by life insurance companies.”
M. H. Lee (mhlee@koreabizwire.com)
