In addition, almost half (46%) do not know the average cost of caring for someone with dementia at all, which is an estimated £100,000 ($124,667).
This is according to research from VitalityLife, which also found that 19% do not know any ways their home environment could be improved.
Currently, many with dementia must fund the complete cost of their care, which means those with serious illness could face spending everything they have on care.
Justin Taurog, managing director VitalityLife commented, “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. Dementia and frail care cover is now included automatically within VitalityLife’s Serious Illness Cover, which is completely unique in the market. We hope this gives people some peace of mind when it comes to protecting against a life-changing event such as dementia.”
Vitality paid out £96m in 2022
Vitality paid £96m in life claims to its members in 2022 across life, serious illness cover, and income protection cover.
99.7% of all life claims, 92.5% of serious illness cover claims, and 97.7% of all income protection claims were met.
Furthermore, this comes to 2,440 claims.
One in eight claims covered by Vitality were actually not covered by a competitor’s typical enhanced critical illness plan in 2022.
Cancer was the most common cause for a life claim, followed by heart and artery-related causes and respiratory illnesses. However, Covid-19 has dropped from 4th to 7th leading cause of claim.
Taurog added: “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 £96m 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.
“But being there for our members is also about being there every step of the way. It’s about supporting them with the tools needed to make sustainable changes for a healthier, longer life, in order to protect them from foreseeable harm in the future and, ultimately, deliver good client outcomes whether a claim is made or not.”