[Getting Insurance Savvy] Should You Switch Your Real Expense Insurance Now or Wait for the 4th Generation?

Increased Insurance Premium Burden Upon Renewal
"Age and Health Status Must Be Considered"

[Editor's Note] Difficult insurance, a straightforward explanation of insurance that remains confusing even after listening to explanations. There is no bad insurance in the world, only insurance that does not suit me. Following easy-to-understand insurance explanations is not far from becoming an 'insurance insider.'

[Asia Economy Reporter Oh Hyungil] Many consumers are considering switching due to the increase in premiums for indemnity medical insurance, but insurance experts sometimes recommend maintaining the existing indemnity insurance even if premiums rise. It is explained that those who have illnesses and receive frequent hospital treatments are better off continuing with their existing indemnity insurance.

According to the insurance industry on the 28th, premiums for the old indemnity insurance sold until September 2009 are expected to increase by more than 50% depending on the renewal period.

Major non-life insurance companies plan to raise premiums for old indemnity insurance by up to the 19% range starting in April. Samsung Fire & Marine Insurance will increase by 18.9%, DB Insurance by 17.8%, Hyundai Marine & Fire Insurance by 18%, and KB Insurance by 19.5%.

For policyholders with a 5-year renewal period, the cumulative increase rate is expected to exceed 50%.

Consumers feeling burdened by premium payments are increasingly concerned about whether to switch to the relatively cheaper Good Indemnity Insurance or the 4th generation indemnity insurance launching in July.

If one subscribes to another indemnity insurance before July, they must enroll in the currently sold Good Indemnity Insurance product; after that, they must subscribe to the 4th generation indemnity insurance.

There is also a point that the pros and cons of old indemnity insurance, Good Indemnity Insurance, and 4th generation indemnity insurance must be carefully considered.

Old indemnity insurance has expensive premiums but, conversely, no deductible. It is said that if you visit hospitals frequently or use many non-reimbursed treatments, it is better to maintain it despite the high premiums.

On the other hand, if hospital visits are infrequent and high premiums are burdensome, switching can be considered. However, even in this case, if conditions worsen due to age or health status, switching insurance may be disadvantageous.

In particular, the 4th generation indemnity insurance limits the deductible for non-reimbursed treatments to 30%, but if hospital visits are infrequent, there is an advantage of receiving premium discounts in the future. Conversely, if hospital visits suddenly increase, the insured must bear the increased premiums.

An insurance industry official said, "Switching indemnity insurance should be carefully considered based on current age and health status," adding, "Those who visit hospitals frequently or are elderly are better off maintaining existing insurance, while those who are not old and visit hospitals infrequently can save on premiums by subscribing to new insurance."