Research from VitalityLife revealed that almost half of Brits do not know the cost of caring for someone with dementia, which is estimated to be around £100,000.
The survey of 2,000 people found 60 per cent were worried about the cost of care if they got diagnosed with dementia and 46 per cent were not aware of the average cost.
One of the key ways of caring for a person with dementia us making improvements to their home but a fifth of those surveys did not know ways they could be improved.
Currently, many people with dementia must fund the complete cost of their care, which means those without serious illness cover face the daunting prospect of spending everything they have on their care.
Justin Taurog, managing director VitalityLife said: “Our research shows that there is a gap in people’s understanding about dementia care, with few really grasping the costs needed for someone living with the disease.”
He added that dementia and frail care is now included in the company’s serious illness cover.
Claims
Further data published by the insurance company showed it paid out £96mn for protection claims in 2022, which was around 96 per cent of all claims.
The most common cause for life claims in the year was cancer with a total of £60mn paid out.
However, the data found the impact of Covid-19 has come down from the fourth leading cause of claim in 2021 to the seventh in 2022.
On income protection plans in 2022, musculoskeletal claims were the leading cause of claims (34 per cent) followed closely by cancer (29 per cent) and mental health (14 per cent). Together, these accounted for over 75 per cent of all claims.
Taurog said: “Our shared value insurance products have always had positive customer outcomes at their foundation, and we welcome the introduction of consumer duty.
“As well as ensuring our members get value and a framework to get healthier from day one, we're also dedicated to ensuring we’re there when they need us most. The fact we paid out over £96mn across Life, Serious Illness Cover, and Income Protection Cover in 2022 demonstrates this.
“Furthermore, these numbers highlight how we go further than traditional insurance by paying claims where others wouldn’t and by keeping cover in place following a claim to protect against recurrences and secondary illnesses, even into later life."
Take Action!
Meanwhile, FTAdviser is pleased to be the generalist adviser trade title supporting the Insurance Day For Dementia, which is happening on November 30.
To find out what you can do to get involved, there's a dedicated microsite and you can read more about it here.
tara.o'connor@ft.com
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Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
