[Asia Economy Reporter Changhwan Lee] As South Korea enters an aging society, social interest in life insurance is increasing. Insurance is a good tool to prepare for a long life.
The Life Insurance Association stated that when individuals consider life insurance, it is best to choose products that match their personal life cycle.
People go through life cycles such as birth, growth, marriage, child-rearing, and old age, and it is necessary to select life insurance products that can prepare for risks that may occur at each stage.
During the growth period (ages 0-19), insurance is needed to prepare for diseases common by age, fractures, burns, and various injury risks. In life insurance, this can be covered by fetal insurance riders and children's insurance. The fetal rider is an insurance product that covers disabilities and diseases such as low birth weight (premature birth) and congenital anomalies (birth defects) that may occur to the fetus. Children's insurance focuses on covering diseases, fractures, burns, and other risks that children are prone to.
In young adulthood (20s-30s), cancer insurance and pension savings insurance are recommended. Cancer insurance mainly covers diagnosis fees when cancer occurs, and depending on the product, it also covers hospitalization fees, surgery fees, radiation therapy fees, and other treatment costs related to cancer. Pension savings insurance is a savings insurance product that requires payments for more than 5 years and allows pension receipt after age 55, with returns determined by the announced interest rate. It also offers tax benefits with a 13.2% tax credit within an annual limit of 4 million KRW.
In middle age (40s-50s), it is necessary to consider whole life insurance and dementia/care insurance. Whole life insurance covers the insured until death, and insurance money is paid to the survivors after the insured's death. Preparation for dementia is also needed in the 40s and 50s.
Both domestically and internationally, the incidence of dementia is rapidly increasing along with population aging, and social interest and awareness are also rising. Dementia and care insurance covers various costs arising from dementia, such as medical fees and nursing care expenses.
In old age (60s and beyond), retirement protection insurance and simplified underwriting insurance are important. Retirement protection insurance includes health insurance, cancer insurance, silver insurance, and long-term care (LTC) insurance. It covers diagnosis fees and treatment costs such as hospitalization and surgery due to various diseases and injuries. Recently, even elderly and those with pre-existing conditions can join through simplified underwriting, and risk coverage is possible up to age 100 due to increased average life expectancy.
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