Korea Life Insurance Association: "Gift Children's and Senior Insurance for Family Month"

On May 2nd, the first weekend of Family Month, families with children are visiting Children's Grand Park. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Oh Hyung-gil] 'How about gifting insurance to your parents or children?'

On the 3rd, the Life Insurance Association recommended insurance products for children and the elderly in celebration of Family Month. This is because medical expenses for those under 19 and over 65 have recently increased significantly, yet the life insurance subscription rate remains lower compared to other age groups.

According to the Health Insurance Review & Assessment Service, the total medical expenses in Korea amounted to 86.0277 trillion won in 2019, an increase of 118.2% compared to 10 years ago. Among these, medical expenses for the elderly aged 65 and over surged by 190.1% to 34.9293 trillion won during the same period.

Among various medical departments, ophthalmology, otolaryngology, and dermatology expenses reached 3.6 billion won, increasing by 39.7% compared to 2016. It is analyzed that due to fine dust, eye, respiratory, and skin diseases have become frequent, leading to a continuous increase in patients visiting local clinics.

The problem is that although the risk of various diseases caused by rising medical expenses and environmental pollution is expanding, those under 19 and over 65 are insufficiently prepared for this. In fact, the life insurance subscription rate for these age groups is significantly lower compared to other age groups.

Medical expenses for those under 19 account for 8.8% of the total, but life insurance subscriptions only make up 1.5% of the total. For those over 65, medical expenses account for 40.6% of the total, but life insurance subscriptions remain at 10.0% of the total.

The life insurance industry points out the need to understand the characteristics of insurance exclusively for children and the elderly and to prepare for risks by subscribing to related products.

First, children’s insurance provides high diagnosis payments for cancers that require expensive treatments, such as leukemia and bone marrow cancer. Coverage is also being strengthened in response to environmental and trend changes like fine dust and smartphones. Additionally, products that compensate for crimes targeting children, such as traffic accidents, abduction, kidnapping, and assault, have been launched.

Notably, life insurance companies allow subscriptions up to age 30, and the insurance period can be chosen between coverage until age 30 or age 100, which is a noteworthy feature of children’s insurance.

For elderly insurance, it is becoming possible to subscribe with simplified screening even for those with pre-existing conditions such as hypertension or diabetes and for people in their 60s to 80s. Furthermore, life insurance companies provide diagnosis fees for long-term care conditions like dementia, living expenses, and nursing care services. One insurance product can cover major adult diseases such as cancer before age 70 and then cover dementia and other conditions afterward, allowing efficient preparation for various risks that change with age.

A Life Insurance Association official said, "In celebration of Children’s Day and Parents’ Day during Family Month in May, insurance gifts can express love for family," adding, "Accordingly, life insurance companies are introducing children and elderly insurance products that meet consumer demand."