After the launch of a rider that allows policyholders to receive death benefits in advance each month like an annuity, the average monthly payment requested by applicants was analyzed to be about 400,000 won.
On the 18th, the Korea Life Insurance Association said that during the eight business days from on the 30th to the 10th, when the death benefit securitization product was launched, a total of 605 applications were received through five life insurers (Hanwha Life, Samsung Life Insurance, Kyobo Life Insurance, Shinhan Life, KB Life).
The first-year payout for the 605 cases was about 2.89 billion won. Converted to a monthly basis, the average per case is 398,000 won. The average application age was 65.6, the securitization ratio was 89.2%, and the securitization period was 7.9 years.
Applicants for death benefit securitization can choose the securitization ratio (within 90%) and the period. The Korea Life Insurance Association analyzed that most demand increased the securitization ratio up to the maximum 90% and then shortened the payment period to raise the payment amount.
The association said, "The appropriate living cost per Korean senior to maintain life in old age is 1.92 million won a month," and noted, "When needed, we expect to enhance stability in old-age living by using death benefit securitization and other options as a supplementary means to the National Pension."