"You Could Regret Not Checking: Essential Things to Know Before Buying Insurance"

Carefully Review Whether the Product Suits You
If You Do Not Understand the Policy Terms, Ask the Agent
If You Enroll by Mistake, Cancel Within Two Weeks

"Before purchasing insurance, carefully check what type of product it is and request an explanation from the insurance company's website or an agent."

According to the Korea Life Insurance Association on May 29, insurance is an intangible product that requires maintaining a long-term contract and offers a variety of coverage options. Therefore, consumers need to thoroughly review the details before enrolling.

When entering into an insurance contract, you must truthfully disclose important information such as current and past illnesses and whether you drive yourself to the insurance company. Getty Images

The most important thing is to determine whether the product suits your needs. You should avoid enrolling in unnecessary products simply based on an agent's recommendation. Choose a product that fits your financial situation and income level without causing undue burden. By using the disclosure section on the Korea Life Insurance Association's website, you can compare protection-type and savings-type products by company.

When entering into an insurance contract, you must truthfully disclose important information to the insurance company, such as your current and past illnesses and whether you drive yourself. If the policyholder intentionally withholds important facts, the insurance company may reduce or deny the payment of insurance benefits.

After completing the application and product description documents, the policyholder must review the contents and sign them in person. If there is anything you do not understand or have questions about, it is best to ask before signing. After the contract is signed, you should receive copies of the application, product description, and insurance policy terms to secure evidence in case of any future disputes.

If you are purchasing insurance through an agent, it is helpful to know about the Certified Excellent Agent system. Certified Excellent Agents are evaluated as outstanding in terms of contract retention rates and complete sales, which helps reduce the risk of incomplete sales. For products sold online, be aware that many offer simple coverage and do not provide a refund if canceled mid-term.

If you mistakenly purchased insurance or did not receive a sufficient explanation, you can usually cancel the insurance contract within 15 days from the day you received the insurance policy. However, if 30 days have passed since the application date, cancellation is not possible. During the cancellation period, the insurance company must refund the full premium within three days of receiving the cancellation request.

To receive coverage after signing the insurance contract, you must pay the first premium. If an event covered by the policy occurs, the policyholder must immediately notify the insurance company. Since insurance companies are often unaware when a claimable event occurs, prompt and accurate notification is necessary to receive benefits quickly. If your address or contact information changes, you must also inform the insurance company to ensure you receive the required coverage without issues.

<Provided by Korea Life Insurance Association>