Hanwha Life announced the launch of its 'Dementia Care MMT (Flexible Trust Account)' on August 18, designed to protect customers' assets and cover care costs in the event of a dementia diagnosis.
The Dementia Care MMT is a product that combines an existing MMT with a rider for moderate to severe dementia. Customers can use it freely like a regular MMT, but if they develop moderate to severe cognitive impairment (CDR score of 2 or higher), the rider activates, and trust funds are disbursed.
At the time of enrollment, customers can pre-determine the trust manager and the method of fund disbursement. The options include a one-time payment ('lump-sum payment'), monthly payments over a specified period ('regular payment'), or reimbursement for actual costs incurred at hospitals or care facilities ('special payment'). Customers can also set the percentage of the MMT balance to be used for each payment method in advance.
No additional rider costs are incurred until a dementia diagnosis is made. While healthy, the account operates like a standard MMT, and the rider fee begins once a diagnosis certificate is submitted to initiate the care fund disbursement service.
Hanwha Life designed the product to prevent the assets of dementia patients from being effectively frozen, allowing them to use their funds for care. The Low Birthrate and Aging Society Commission estimates that the scale of 'dementia money' in South Korea will grow from 154 trillion won in 2023 to 488 trillion won by 2050.
The product can be enrolled in at Hanwha Life customer centers nationwide.
Lee Jong-ho, head of Hanwha Life's marketing division, stated, “We will provide a practical financial safety net that supports asset management after a dementia diagnosis.”
* This article has been translated by AI.
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