Insurance Premium Payment Deferral Special Product to Help Vulnerable Groups Launches in January Next Year

[Photo by Yonhap News]

On the 28th, the Financial Supervisory Service announced that it will support the Life Insurance Association and the General Insurance Association in launching the 'Insurance Consumer Livelihood Stability Special Contract,' which allows a one-year grace period for premium payments during income interruption periods caused by unemployment, major illnesses, childbirth, and childcare.

The Insurance Consumer Livelihood Stability Special Contract is a system-based rider with no additional premium burden on insurance consumers. Starting January next year, 10 insurance companies will sequentially launch related products. Depending on each company's circumstances, the rider will be added to designated protection-type insurance products (such as health insurance) and sold.

In January next year, Hanwha Life, Shinhan Life, MetLife, and Hanwha General Insurance will introduce products. In April, Samsung Life, Kyobo Life, Mirae Asset Life, Heungkuk Life, Tongyang Life, and ABL Life plan to release products.

In cases of unemployment (unemployment benefit recipients), the three major critical illnesses (cancer, stroke, acute myocardial infarction), childbirth, and childcare leave, if the insured applies according to the method guided by the insurance company, premium payments will be deferred for one year. From the first premium due date after application, premiums will not be paid for one year (12 months), and coverage will remain the same as if premiums were paid normally. However, the premium payment completion date will be extended by the length of the deferral period. For example, if the original completion date was June 2030, a one-year deferral will extend it to June 2031. Interest accrued during the premium deferral period will be fully borne by the insurance company. Since the eligible products and detailed terms may vary by company, it is essential to check the insurance policy and guidance documents.

A Financial Supervisory Service official stated, "Going forward, the Financial Supervisory Service and the Life and General Insurance Associations will continue to help more insurance companies launch the Insurance Consumer Livelihood Stability Special Contract."