Design And Pricing Of Long-term Care Insurance Products For The Elderly With Dementia

Population aging has become one of the important characteristics of China’s society.In 2000,China entered the stage of social population aging,as indicated by data from the country’s population census.With the proportion of the population over the age of65 exceeds 7%,China has entered the aging society.With the degree of population aging has intensified,the number and proportion of the elderly population keep rising,and the life expectancy of the elderly has continued to extend.However,longevity does not mean health.The gradual increase in the elderly’s morbidity rate highlights their growing health concerns.The elderly require better care and medical security to meet their increasingly growing health needs.Dementia has become one of the health barriers for the elderly.China accounts for roughly 25% of the total number of dementia cases among the elderly population worldwide,ranking first.The increasing scale of the population with dementia has brought great challenges to our broken society.Dementia is mainly manifested by cognitive function degradation.With the deepening of the degree of dementia,the elderly will gradually lose their ability to take care of themselves.The nursing needs of the dementia population need to be addressed urgently.However,due to the particularity of dementia,even though China has begun to develop a pilot long-term care insurance system,due to the immaturity of the system itself and the unsound evaluation system,some people with dementia have been excluded from long-term care insurance.At the same time,because the dementia population often coexists with multiple diseases,the elderly with severe dementia need more professional care.This kind of care service is often long-term and diverse,and requires more professional care personnel,however,The current long-term care services are inadequate in meeting the unique requirements of individuals with dementia,and the long-term care insurance is also difficult to cover the nursing risks of the people with dementia.Therefore,the nursing problems of the people with dementia will become more and more prominent as the scale of the population with dementia increases,bringing pressure to the whole society.In order to deal with the nursing problems of the elderly with dementia,this paper begins by surveying the current status of the long-term care insurance system in China,while also highlighting the inadequacies and deficiencies present within the system,then studied the dementia and dementia care,analyzed the characteristics of the dementia population and its demand for nursing services,and proposed a longterm care insurance based on the dementia population.The large number of care groups and high difficulty of care for the elderly with dementia will bring great pressure to the whole society.The inclusion of dementia care into long-term care insurance can effectively alleviate the social pressure caused by dementia.Based on the Markov model and the CLHLS tracking data from 2014 to 2018,this paper calculates the transfer probability of dementia at all ages by comparing the simple mental state examination scale(MMSE),and determines the rate of long-term care insurance products that protect the risk of dementia for the elderly.According to the empirical research results,with the increase of age,the probability of dementia deterioration will gradually increase,the probability of dementia recovery will gradually decrease,and the mortality rate of dementia will rise rapidly.This paper calculates the transfer probability of dementia in the elderly in China,and studies the change of transfer probability between different dementia states,which has practical significance for deepening the understanding of dementia and preventing the deterioration of dementia;using the Markov model to calculate the transfer probability between different dementia states and then calculate the cost of protecting dementia risk for long-term care insurance,which holds great significance to ameliorate China’s long-term care insurance system and devise solutions to address the issue of dementia in the elderly.