Interest Payment Deferral Program for Insurance Policy Loans of Vulnerable Groups Starting February

Follow-up Measures for Mutual Growth in the Insurance Sector
At Least 1 Year Interest Payment Deferral for Economically Distressed Insurance Policyholders Such as the Unemployed

Starting next month, insurance policyholders experiencing economic difficulties such as unemployment, business closure or suspension, or hospitalization due to illness or injury will be able to apply for a minimum one-year deferment of interest payments on insurance policy loans.

The Life Insurance Association and the General Insurance Association announced on the 17th that they will implement the interest payment deferment system for insurance policy loans beginning on the 1st of next month. This is a follow-up measure to the "Insurance Industry Win-Win Plan" announced on the 14th of last month.

The program targets policyholders who are currently using or planning to use insurance policy loans. They must prove unavoidable financial hardship such as unemployment, business closure or suspension, long-term hospitalization of 30 days or more, or natural disasters. If the financial hardship continues before the deferment period ends, the deferment can be extended for at least one more year. The extension period and the number of extensions vary by insurance company.

Interest payments deferred during this period must be repaid by the policyholder after the deferment ends, or if repayment is difficult, the interest may be added to the loan principal. If the total amount of the loan principal and deferred interest exceeds the insurance policy loan limit set by the company during the deferment period, the deferment may be terminated.

An industry official stated, "The insurance industry and associations will continue to monitor the performance and status of interest payment deferments to ensure the system is stably established. We plan to review and implement related system improvements with financial authorities to alleviate the interest burden on insurance policy loan users and enhance their benefits."