To ease insurance premium burdens from childbirth and child care, the insurance industry will roll out a "three-part support set" starting in Apr. next year, including discounts on children's insurance premiums, premium payment deferrals, and deferrals of insurance contract loan interest repayments.
The Korea Life Insurance Association distributed a notice on "Insurance systems changing in 2026" and said on the 30th that it will implement these measures to promote mutually beneficial finance and improve convenience for insurance consumers.
Starting Jan. 1 next year, the withholding tax rate on pension income for lifetime annuities that pay until death will be lowered from 4% to 3%. If retirement income is received as a pension for more than 20 years, the reduction rate will be expanded from 40% to 50%.
On Jan. 1 next year, liability insurance products for accidents at electric-vehicle charging facilities will be launched. Coverage will apply not only to charging facility fires, but also when electrical faults cause connectors to melt or deform and damage vehicles. The compensation limit is 150 million won per person for bodily injury and 1 billion won per accident for property damage.
On Jan. 2 next year, 19 life insurance companies will launch products that securitize death benefits. This will allow policyholders to receive a portion of the death benefit—otherwise payable only upon death—in advance during their lifetime to use as retirement funds. Currently, five life insurance companies have launched the securitization products first.
From Jan. 1 next year, simple insurance agencies will be able to sell not only non-life insurance products but also life insurance and third-sector insurance products. In the first half of next year, the Insurance Association will handle complaints without dispute potential, such as simple inquiries, among those previously received and processed by the Financial Supervisory Service.