Dementia is a broad term for progressive cognitive decline that interferes with daily functioning, affecting memory, reasoning, language, and behavior. Common causes include AlzheimerTMs disease, vascular dementia, and mixed dementias. As dementia advances, individuals often require supervision or full-time care and may become unable to make financial or medical decisions. In insurance contexts, dementia is a major trigger for long-term care or chronic illness benefits and a serious impairment in life insurance underwriting, frequently leading to declines or restricted planning options.

Advisors encounter dementia when older clients or their families report diagnoses or noticeable memory and behavioral changes. Underwriters review neurologist notes, cognitive testing, and care plans and typically treat established dementia as uninsurable. In LTC and chronic-illness claims, dementia diagnoses often satisfy cognitive-impairment triggers for benefits, sometimes before physical ADL losses. Advisors must follow heightened suitability and capacity protocols, often involving powers of attorney or conservatorship. Understanding dementia helps advisors handle sensitive conversations, protect vulnerable clients, and coordinate claims and caregiving resources.