Covering everyone! The "Sixth Insurance" is here. Watch this video to understand: Who can claim? How much to pay? | Homebody Finance

Ask AI · How does long-term care insurance fill the gaps in the elderly care security system?

The “sixth insurance” of social security is here! On the 25th, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the “Opinions on Accelerating the Establishment of a Long-term Care Insurance System.” China will establish a long-term care insurance system suitable for its basic national conditions within about three years. Wang Wenjun, deputy director of the National Healthcare Security Administration, stated today that by the end of 2028, the system will achieve basic coverage nationwide.

Long-term care insurance is referred to as the “sixth insurance” of social security. In fact, as early as 2016, the state began piloting long-term care insurance in 49 cities, including Shanghai, Guangzhou, and Qingdao. The 14th Five-Year Plan outline and this year’s government work report proposed promoting the long-term care insurance system, marking the first time the “sixth insurance” is being pushed for implementation nationwide at the national level.

Next, it will enter thousands of households and be closely related to everyone’s elderly care life.

Who can participate in long-term care insurance? How much is the premium? How is the premium paid? What benefits can be enjoyed?

Who can receive benefits? This is the most concerning question for everyone, and the core standard is “severe disability.” A state of disability generally lasts more than six months; if an individual is unable to independently complete three of the daily activities, such as dressing, eating, using the toilet, and bathing, they fall under the protection of “long-term care insurance.”

According to the “Opinions” from the two offices, employers, employees, retirees, flexible workers, and unemployed individuals can all participate in insurance. A sound multi-channel funding mechanism involving units, individuals, the government, and society will be established, with the “long-term care insurance” rate uniformly controlled at around 0.3%.

In terms of benefit protection standards, for unemployed urban and rural residents participating in insurance, the fund payment ratio is about 50%; for units’ employees participating in insurance, the fund payment ratio is about 70%; retirees can enjoy the benefits of unit employees’ insurance; flexible workers can enjoy corresponding benefits based on the type of insurance policy they choose.

The implementation of the “sixth insurance” is a strategic measure by the state to respond to population aging and address the issue of care for disabled individuals. It fills the gap between medical insurance—which covers illnesses—and pensions—which cover living expenses—specifically addressing the issue of “care,” showcasing the governing philosophy and policy warmth of our country that prioritizes “people’s livelihood.”

With economic development and institutional improvement, China will gradually study the expansion of the coverage scope and dynamically adjust the rate according to the demand for fund expenditures.

Copywriter: Dong Xiangyi Zhang Ning

On-screen: Zhang Ning

Production: Zheng Zheng

Editor: Dong Xiangyi Jia Yifu