Dependency insurance: protecting personal autonomy

Home > Blog > Dependency insurance: protecting personal autonomy

Long-term care insurance guarantees compensation in the form of income, capital or the provision of a service.

Could you define what a “state of dependence” means? The Council of Europe did so in 1998: “Dependence is the need for significant help or assistance in carrying out normal day-to-day activities or, more precisely, the state in which people find themselves when, due to the lack or loss of physical, psychological or intellectual autonomy, require significant assistance or help in carrying out their usual day-to-day activities ”.

It not only applies to the elderly

While reading this definition, it is possible that many images have crossed your mind. And it’s likely that all of them are capable of causing considerable concern. This is normal and, moreover, more and more common: the increase in life expectancy is causing a notable increase in dependent people. However, bear in mind that dependence is not always age-related: this situation can be caused by illness and other causes of disability or restricted movement.

Supplementary help

What happens now? How do you cope with the day-to-day challenges? What financial aid can is a dependent person entited to? In 2006, the Dependency Law was created in Spain to provide financial aid or assistance. However, sometimes this is not enough; the crisis and other factors reduced this aid to the point of making it insufficient and even non-existent. Faced with this situation, dependency insurance came about.

Three factors

This type of insurance guarantees compensation in the form of income, capital or the provision of a service provided that the insured party is in a dependent situation; in other words, when three factors concur: physical, psychological or intellectual limitation; inability to carry out daily tasks by oneself; and, finally, the need to have the assistance of a third person.

From telecare to training for caregivers

In addition to being able to rely on an income or capital amount, the provision of services that these insurance policies usually include refers, for example, to the costs of staying in a residential center; home help services; telecare for people living alone; training for caregivers, etc.

Dependency insurance allows for the design of policies that can be adapted to the particular situation of each dependent person. Beyond the difficulties and daily challenges that these people have to face, the sector works to ensure their quality of life, the care they need, and their dignity and well-being.

You may also like…

Saving is also for young people

Saving is also for young people

Retirement horizon Although the proportion of those who have started saving for retirement is less than a fifth (17%), six out of ten (63%) of those who are not yet saving believe that it is advisable to do so, starting at around the age of 38. Of those who have...

11 ways to get the most out of your home

11 ways to get the most out of your home

In other words, they have lots of assets and little income. This paradox is even greater in retirement, especially for those who have not planned ahead and whose only income is a public pension. One formula for reversing this situation is to treat your home as what it...

Digital risks: secure yourself against cyberattacks

Digital risks: secure yourself against cyberattacks

Simply having a smartphone on which you keep information related to the business, clients, accounts, suppliers and so on is enough... this is usually the main entry point for computer viruses, unauthorized access, fraud, system blocking, virtual kidnaps, data...

What is embedded insurance?

What is embedded insurance?

Linked to the purchasing process So-called "embedded insurance" is one of the big trends within this transformation process. In fact, a 2021 InsTech London report predicted that the global embedded insurance market will grow to $722 billion in gross written premiums...

10 saving tricks for beating inflation

10 saving tricks for beating inflation

Inflation is simply a generalized price increase, in this case caused by the rising price of energy, which affects the entire value chain and is then passed on to other products. In other words, prices go up and every day you pay more for the same thing. There is...

ON-OFF Insurance: cover at the touch of a button

ON-OFF Insurance: cover at the touch of a button

  The philosophy behind this type of insurance is "pay-as-you-go", also known as the "on-demand" philosophy. On-demand For example, if you only use your computer when you are at home, you probably don't need to insure it; but if you take it on a trip, an...