Deepak Jobanputra discusses new dementia research and why advisers should be increasingly aware of clients' care needs.
Increasing life expectancy
An ageing population means that we are seeing an increase in the number of people suffering degenerative illnesses. These are illnesses that get worse over time and for which there is no cure.
Dementia, Alzheimer's disease, Parkinson's disease and stroke are the most common illnesses associated with old age according to a Consensus report October 2014.
Faced with an ageing population, the number of people suffering from these conditions is rapidly increasing. HES data shows that in 2012-2013, more people visited NHS hospitals with dementia when compared to the other common later life illnesses/conditions.
There has been a lot of focus on dementia in recent years given that it is considered to be becoming the biggest burden on healthcare systems.
What is dementia, is it the same as Alzheimer's disease?
Dementia is a term used to describe symptoms including memory loss and difficulty with thinking and problem solving. Dementia is caused when the brain is damaged in some way. Dementia and Alzheimer's disease are different.
Alzheimer's is just one condition that damages the brain which could result in the development of dementia. Other conditions that can cause brain damage and contribute to the development of dementia are stroke, Parkinson's disease and a history of head injuries.
Approximately 800,000 people are living with some form of dementia. This number is expected to jump up to 1,000,000 by 2025, figures from The Alzheimer's Society have shown.
The cost of dementia
The cost for an individual with dementia is around £32,000 per year, with only a third of this coming from the state. The financial impact doesn't just affect sufferers of dementia either. Family members may need to take time off work to care for loved ones with dementia, which could mean a loss of income. Dementia UK's report has warned that with an ageing population, these costs will only increase in the future.
Healthy lifestyle and dementia
Although degenerative illnesses are particularly prevalent in later life, are they inevitable? What can we do now to help prevent or hold off dementia?
Studies from the Fisher Centre for Alzheimer's Research Foundation have shown that people who follow 4 out of 5 healthy behaviours are 60% less to develop Alzheimer's and other forms of dementia in old age than those who follow none of these healthy lifestyle measures. The measures include exercising regularly, not smoking, keeping their weight down, eating healthily and moderating alcohol intake.
A more recent study by the University of Eastern Finland also revealed that a healthy lifestyle can preserve the brainpower of those at risk of dementia. The study found that those who received a programme of guidance on healthy eating, exercise, brain training and the management of risk factors such as high blood pressure had 25% higher brain function than those who didn't receive the program.
Once again we hear from leading medical professionals that healthy lifestyle choices can reduce the likelihood of dementia in later life.
Dementia not only severely impacts our health, but it also leads to the majority of sufferers requiring care - often specialist and constant, which can cause severe financial strain. The findings of the study should help motivate everyone to incorporate regular exercise and healthy eating into their daily activity to reduce the risk of developing such diseases.
We believe in the importance of making exercise habitual. That's why we encourage people to introduce physical activity into their existing routines. More has to be done to address the problem, both in terms of preventive measures but also innovation in terms of financial provision for those who do suffer from dementia.
It's about time a greater emphasis was placed on ensuring people fully understand the benefits of health and wellbeing on their later life. We've seen a dramatic increase in dementia cases in recent years, yet this new evidence shows a way this could be slowed down or even stopped.
Healthy behaviours and incentives to reward active behaviours reduce the risk of developing age-related illnesses and/or delay their onset.
What's new for advisers?
The typical protection market has not kept pace with an ageing population. Instead, it continues to offer insurance that's weighted to life before retirement, with 81% of protection in force up to age 65 - quoted figure from Swiss Re in 2014.
The number of over 85's is set to double in just the next 20 years, and already there are 3 million people in the UK either in a care home or receiving some form of help or support in their own home, perhaps from friends and relatives.
The Care Act, which will be introduced in April 2016, will cap the cost of care at £72,000, although this will not include food or accommodation. This still leaves substantial potential costs for anyone in need of care due to age-related or degenerative diseases.
Your clients may not be concerned about their care needs in later life, believing that the government will support them financially if they require assistance at any point.
They are probably thinking post-retirement, that once the mortgage is paid off and the kids have left home, the only costs to consider might be looking into winter holidays in the sun, or their annual health club membership. It is likely that for most people the cost of care will be one of the biggest potential money pits in later years.
More has to be done to address the problem, both in terms of preventive measures but also innovation in terms of financial provision for those who do suffer from dementia.
It's about time a greater emphasis was placed on ensuring people fully understand the benefits of health and wellbeing on their later life. We've seen a dramatic increase in dementia cases in recent years, yet this new evidence shows a way this could be slowed down or even stopped.
Conditions such as dementia, Parkinson's and stroke highlight the need for care in old age and the huge costs associated with such care.
With retirement savings unlikely to be sufficient to pay for the costs of care and the state already unable to cover 2/3rds of the cost of dementia it means increasingly customers need to plan for their future care needs.
For advisers, this opens up a new market of existing customers looking to protect their families from the burden of care costs; wealthy clients who want help towards their care costs, not just protection for their inheritance tax bill; and new customers who haven't yet bought protection but understand the value in protecting themselves, and their family's future.
The industry definitely has more work to do in raising awareness on later life conditions, and helping to plan for these needs using new products and more holistic advice. Key to our success will be government, insurers and advisers working together, to help solve one of the greatest challenges faced by our society today.
Deepak Jobanputra is deputy CEO at VitalityLife
