Advancing economic security and health care in the old age through insurance planning
In response to the trend of elderly population, it is necessary to plan for retirement life earlier. This section helps clients understand the insurance products for social care and nursing care in the elderly society, and reminds to plan for the economic security and medical care of the elderly through commercial insurance.
Problems an elderly society will face:
1. Annuity insurance
Due to the impact of declining birthrate, people must prepare for their retirement living expenses. Annuity insurance policy is a plan that starts paying you annuity regularly at your retirement age or a specified age, providing you a financial resource to maintain a certain standard of living after retirement.
2. Long-term care insurance
Due to the rapid elderly of the population, the number of elderly people with disabilities is increasing. Long-term care insurance provides the high and regular cost required for long-term care when you suffer from disability or dementia.
3.Medical insurance
As the life expectancy is extended, the medical duration and medical cost of the elderly increase relatively. Medical insurance provides more of your future medical needs as you age.
| Items | Annuity Insurance | Health Insurance | ||
| Deferred Annuity Insurance | Immediate Annuity Insurance | Long-Term Care Insurance | Lifelong Medical Insurance | |
| Description | After the insured pays insurance premiums for a period of time (for example, 20 years) or reaches a certain age (for example, 65 years old), the life insurance company will pay the insured an annuity payment regularly until the insured dies. | Within one year after the insured pays the single premium, the life insurance company will pay the insured an annuity payment regularly until the insured dies. | When the insured suffers from a condition that qualifies for long-term care (for example, loses 3 out of 6 activities of daily living) and the exemption period expires, the life insurance company will regularly pay the insured long-term care insurance benefits. | After the waiting period has expired, the life insurance company will pay medical benefits during lifetime when the insured is hospitalized for medical treatment of illness or injury. |
| Needs | Provide financial resources for retirement to maintain a certain standard of living | Provide economic security for loss of daily living ability | Provide lifelong protection for medical expenses | |
| Suitable Groups | Young person, middle-aged person | Retired, the elderly | Middle-aged person, the elderly | All ages |
| Planning Focus | Because of the elderly population, low birth rate, and higher dependency ratio, the young person should take out deferred annuity insurance to reserve financial resources in your old age as early as possible. | Use the lump sum pension to buy immediate annuity insurance to let the life insurance company solve the extended financial problem due to longevity. | In response to the aging population and low birth rate, purchasing long-term insurance early is to protect yourself against the cost of care in your old age. | Lifelong medical insurance can cope with the predicament of not being able to buy medical insurance in the future and meet the higher medical protection demand in your old age. |
Source: The Insurance Agency Association of the Republic of China (CIAA)