Life insurance companies have come up with a variety of insurance products, in keeping with consumers’ rising concern over health insurance guarantees and the burden on households over medical costs, Korea Life Insurance Association (KLIA) said on June 16.
The disease insurance products, released by life insurers, include insurance policies designed to cover medical costs of three major diseases, “do-it-yourself”-type ones, designed by consumers on their own, and ones whose coverage period extends to 100 years in age, and ones designed to cover women’s diseases.
The three major disease insurance policies are designed to cover medical costs of Korean people’s top three death causes - cancer, cerebrovascular diseases and heart diseases.
Various forms of cancer accounted for 27.5 percent of the nation’s total deaths, followed by heart diseases with a 10.5 percent share and cerebrovascular diseases with 7.3 percent.
The “DIY”-type insurance policies are ones in which consumers design what they want at premium levels they want by utilizing diverse special contracts.
Life insurance products whose coverage period extends to 100 in age are on the rise. Some life insurance firms allow consumers to sign up for life insurance products until 90 years of age and cover them until they reach 100 years old.
Insurance policies designed to cover women’s diseases, such as gynecological diseases and osteoporosis are also on the rise.
KLIA said, “Most people have signed up for indemnity insurance policies, and if disease insurance policyholders are diagnosed to suffer from diseases as described by contracts, they can be paid given amounts of insurance money and given a double coverage.”
In the case of diseases, such as cancers, requiring a huge amount of money, an indemnity insurance policy is not enough to make up for future income reduction, so people need to sign up for disease insurance policies to brace for it, it said.
KLIA Considers Commissioning Consulting Service to Tide Over Crisis
Korea Life Insurance Association is seeking to commission a consulting service to overcome a crisis facing the life insurance industry.
Insurance industry sources said on June 8 KLIA is making preparations for commissioning outside consulting services to overcome a crisis facing the industry.
A KLIA official said KLIA is considering commissioning outside consulting services, like a stage of negotiating on costs.
The latest move comes at the request of KLIA Chairman Chung Hee-soo.
In Chung’s New Year’s message, he called for introducing IFRS 17, an international financial reporting standard that was issued by the International Accounting Standards Board in May 2017 and the Korean Insurance Capital Standard (K-ICS) in a stable fashion and continuing future innovation in the life insurance industry.
KLIA and GIAK Designate 30,461 ‘Excellent’ Certification Planners
Korea Life Insurance Association (KLIA) and General Insurance Association of Korea (GIAK) have designated 30,461 insurance planners as “excellent” certification planners for the year 2023. The total are 13,104 and 17,357 excellent certification planners from KLIA and GIAK, respectively. The certification period will last one year from June 1, 2023.
An excellent certification planner system has been implemented by the two associations since 2008 to promote the complete selling of insurance products and establish orderly insurance product solicitation.
The two associations received and examined applications during the period between April and May before designating planners as excellent certification planners this year.
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