Five life insurers (Shinhan Life, Samsung Life Insurance, Hanwha Life, Kyobo Life Insurance, KB Life) launched a "death benefit monetization service" on the 30th that allows policyholders to use death benefits while alive.
The service is an institutional rider designed to help policyholders convert death benefits into pension assets to address retirement income gaps, and five life insurers are introducing it in the first phase.
As of the end of Sep., eligible contracts for death benefit monetization at the five life insurance companies totaled 414,000, with a coverage amount of 2.31 trillion won, enabling existing whole life policyholders to use insurance assets more flexibly amid widening retirement income gaps due to low birthrates and an aging population.
Policyholders age 55 and older who meet certain conditions, such as having completed at least 10 years of premiums on fixed-interest whole life policies, can apply, and monetization is available up to 90% of the base contract's death benefit. There are no additional expenses borne by customers for applying for monetization.