Life insurance adds partial annuity

[Anchor]

Whole life insurance beneficiaries will now be able to receive part of the death benefit as an annuity while the policyholder is still alive.

Reporter Choi In-young will explain in detail.

[Report]

Let’s assume the death benefit is 100 million won.

Originally, this money would be paid out after the policyholder's death. However, going forward, it can be divided into two parts.

A portion to be received as an annuity during the policyholder's lifetime, and the remaining portion to be received as a death benefit after their passing.

The annuitization can be up to 90 million won, which is 90% of the total death benefit.

Let’s say 30 million won is kept as the death benefit, and 70 million won is annuitized.

If the fixed interest rate is 7.5% and the premiums hae been fully paid for 20 years, starting from age 55, the policyholder will receive 140,000 won monthly for 20 years.

From age 65, they will receive 180,000 won monthly for 20 years, and from age 75, they will receive 220,000 won monthly for 20 years.

If the death benefit is 300 million won, the annuity will also be three times that amount.

This year, the average monthly pension from the National Pension is about 660,000 won.

[Lee Jeong-hwan/Hanyang University Professor of Economics and Finance: "For those facing economic risks or inheritance issues due to sudden death, extending whole life insurance is advisable, but if there are concerns about living expenses, converting it into an annuity can also be beneficial."]

In the previous example, the total premium paid is 20.88 million won.

Even at the lowest payout starting from age 55, they will receive 32.74 million won for 20 years.

There will be no situation where they receive less than the premiums paid.

However, it will always be less than the death benefit.

Those aged 55 and above who have fully paid their premiums can apply.

Five life insurance companies, including Hanwha, Samsung, Kyobo, Shinhan, and KB, will start this new policy in October, and other insurance companies will join sequentially.

Eligibility will be individually notified by the insurance companies.

Applications can be withdrawn within 30 days.

This is KBS News, Choi In-young.