Advance Payment Upon Diagnosis of Six Major Adult Diseases or Cancer
[Asia Economy Reporter Minwoo Lee] Products that allow policyholders to receive a portion of their death benefit in advance to cover treatment costs for serious illnesses and living expenses are gaining attention.
According to industry sources on the 30th, Fubon Hyundai Life Insurance is selling the 'MAX Advance Whole Life Insurance.' This product provides lifelong death coverage and features advance payment of insurance benefits upon diagnosis of various diseases.
When enrolling, customers can choose between the '6 Major Adult Diseases Coverage' type and the 'Cancer Coverage' type. Depending on the selection, upon diagnosis of one of the six major adult diseases?cancer, cerebral hemorrhage, acute myocardial infarction, terminal neurological disease, terminal pulmonary disease, or end-stage renal failure?or cancer (excluding breast cancer, male and female reproductive organ cancers, other skin cancers, thyroid cancer, and colorectal mucosal cancer), 80% of the insured amount can be paid in advance.
Through optional riders, additional coverage for treatment, surgery, hospitalization, and other necessary expenses related to illness and accidents can be added. By subscribing to mandatory additional riders, coverage for 'major surgery,' 'rare and intractable diseases,' and 'severe burns' is provided, with surgery or diagnosis funds guaranteed for the first occurrence only. Diagnosis funds are also guaranteed for the first occurrence if breast cancer or male/female reproductive organ cancer is confirmed.
Additionally, depending on the type of surrender refund payment, customers can choose between the 'Practical 50% Type' and the 'Standard Type.' The 'Practical 50% Type' offers a surrender refund that is 50% lower than the 'Standard Type' if the policy is surrendered before the diagnosis benefit payment event during the premium payment period, but the premium is lower than that of the 'Standard Type.'
The insurance period for this product is whole life, and the premium payment period can be selected from a minimum of 5 years to a maximum of 30 years. Single premium payment is only available when subscribing to the 'Standard Type.' The eligible age for enrollment is from 15 to 60 years old. The premium (for a 35-year-old male, insured amount of 100 million KRW, 20-year payment period) ranges from approximately 286,000 to 313,000 KRW per month.
If the insured is diagnosed with a disability of 50% or more or if a diagnosis benefit payment event occurs, premium payments are waived from the next payment onward. When enrolled under the '6 Major Adult Diseases Coverage' type, premium payments are also waived from the next payment onward upon diagnosis of major surgery, rare intractable diseases, severe burns, or corrosion.
A representative from Fubon Hyundai Life Insurance explained, "Upon diagnosis of adult diseases or cancer, policyholders can receive an advance payment of the death benefit to use for treatment costs, and optional riders diversify the necessary coverage. This whole life insurance product provides lifelong death coverage as well as treatment cost coverage for serious illnesses during the policyholder’s lifetime."
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