Seguros y pensiones para todos

Dependency insurance: dignity and well-being

Home > Blog > Dependency insurance: dignity and well-being

07.Apr.2022

The rise in life expectancy is generating a notable increase in the number of dependent people, in other words, people who need significant help or assistance to carry out daily life activities or who are in a state in which, for reasons linked to the lack or loss of physical, mental or intellectual autonomy, they need assistance and/or significant help in their daily lives.
 

Increased life expectancy, increased dependency

In Spain, nearly 9 million people are over 65 years of age and, of these, nearly three million have already reached the age of 80. It is estimated that in 2065 there will be more than 14 million people aged over 65, which will represent 34.6% of the total population at that time. How can we deal with situations of dependency in a context of economic uncertainty?

The Dependency Law approved in 2006, was created to provide economic or welfare aid to these people but, logically, its benefits have requirements and limitations that beneficiaries must meet. As in many other areas, the insurance sector, through long-term care insurance, offers a supplementary alternative to social benefits for situations of dependency.

Financial payment or provision of services

This type of insurance guarantees an indemnity in the form of monthly income, the receipt of a capital sum, or the cost of providing a service. In the latter case, the provision of a service may cover expenses for a place in a nursing home attended by the insured for a number of days per year or home help services such as personal care services. It may also involve remote care services, meaning those that help elderly or disabled people living alone and through which they benefit from communication, self-reliance and security in situations of need, thanks to a device that contacts a service that then provides all the necessary assistance.

One of the requirements for access to these public benefits is that the situation of dependency must be recognized by the corresponding Autonomous Community, which is sometimes subject to delays. Another added value offered by some insurers is that their customers can receive the cover from their dependency policies simply by being assessed by a specialist from the company, without having to wait for official recognition of their dependency status.

When taking out one of these private long-term care insurance policies, the insurers may ask the insured to complete a health questionnaire in order to assess the specific coverage that can be offered. They may sometimes exclude benefits that would be a direct consequence of illnesses that the insured suffered prior to taking out the insurance policy.

In this way, insurers can design responses tailored to the particular situation of each dependent person, ensuring their quality of life, the care they need, and their dignity and well-being.

You may also like…

It is now possible to insure your cryptocurrency investment

It is now possible to insure your cryptocurrency investment

Volatile currency But why is this type of currency riskier? Firstly, because these currencies are particularly volatile and there is a high level of speculation in the market where they operate. This means that the people who invest in them can potentially make a lot...

Insurtech: from a trend to a booming reality

Insurtech: from a trend to a booming reality

Predicting risk All these technologies have generated a huge and continuous stream of connections and information that allows insurance companies to analyze our parameters related to health, driving, travel, home maintenance, and so on. Thanks to the predictive...

Children and money: should they get an allowance?

Children and money: should they get an allowance?

And it is normal to worry about this. Some people want to wait until their children are older to teach them everything to do with money, others believe that these skills related to their financial intelligence should be enhanced from an early age and, of course, there...

Does home insurance cover solar panels?

Does home insurance cover solar panels?

Buildings or contents insurance? But do you know whether these photovoltaic installations are covered by your home insurance? If the solar panels are fixed, they are considered permanent electrical energy installations and, for this reason, they fall within your...

What is cashback and how to take advantage of it?

What is cashback and how to take advantage of it?

In this article we explain what cashback actually is and how to benefit from it without falling into the trap. What is cashback? We can define cashback as a system through which you are paid a percentage of the money you spend when you buy certain products. In other...