The world is experiencing a rapid aging of its population. In Japan, the percentage of the population aged 65 and over reached 29.1% in 2022, which means one out of every three people was aged 65 or older. Dementia is a particular problem in this aging society. The average life expectancy continues to increase, and it is said that people are now living to be 100 years old. In Japan, 55.5% of the elderly aged 85 and over have dementia, and statistics show that almost all people in long-term care facilities suffer from dementia. Public and private long-term care insurance is available to address this problem. The role of insurance for dementia is significant. In Japan, public long-term care insurance was introduced in 2000 to address this social problem. This study analyzes how Japan’s public and private long-term care insurance policies deal with dementia and identifies issues in dealing with dementia in private insurance.