On November 24, Hanwha Life announced the results of a consumer survey analyzing customer perceptions of whole life insurance and its new practical value, in line with the launch of its "death benefit securitization" service.
This survey was conducted by Hanwha Life and Korea Management Association Consulting (KMAC) from September 25 to 29, targeting 1,019 men and women aged 30 and above nationwide.
Among the respondents, half (49.4%) cited "no immediate benefit" as their biggest dissatisfaction with whole life insurance. This was followed by "declining value of insurance payouts" (23.3%) and "difficulty in flexible utilization" (21.1%).
Whole life insurance is still seen as a symbol of "family love and responsibility," but there is a strong perception of it as "expensive premiums" and an "illiquid asset."
The death benefit securitization system, which major life insurers began implementing on a priority basis from October 30, is attracting attention as an innovative feature that shifts the focus of whole life insurance from posthumous to lifetime benefits. The attractiveness of death benefit securitization scored an average of 64.7 points, with 53.4% of respondents giving a positive response. The extent to which the system alleviates negative perceptions of whole life insurance also averaged 63.74 points, with 50.7% positive responses, both exceeding half.
Situations where this system would be helpful were most commonly cited as "retirement living expenses" (37.0%), followed by "major illness medical expenses" (24.4%) and "long-term care costs" (23.3%).
In this survey, "married households in their 40s and 50s with children" showed high levels of empathy for both the traditional value of whole life insurance (family protection) and its new value (lifetime asset utilization). This generation, which strongly desires both family support and personal retirement security, was analyzed as the core group with the most practical demand for the death benefit securitization system. In this age group, the need to supplement "post-retirement living expenses" was high, at 41% for those in their 40s and 44.9% for those in their 50s. Agreement with "active asset utilization" was also high.
Respondents emphasized the need to enhance customer trust and satisfaction by strengthening the transparency of product structures and combining practical additional services, such as "nursing and long-term care services" (68.6%).
A Hanwha Life representative stated, "Death benefit securitization is an institutional innovation that expands whole life insurance from 'posthumous protection' to 'lifetime asset.' We will continue to enhance our services so that customers can flexibly utilize insurance throughout their lives."
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