Business · Companies · 3 hrs ago
South Korean life insurers shift whole-life policies toward living benefits
South Korean life insurers are redesigning whole-life policies for use during life, not only to leave money to family after death.
The shift follows regulators’ action that effectively ended sales of “700 whole-life” policies, which reached a 100% surrender value after seven years and risked being mistaken for savings products.
Insurers including Samsung Life, Hanwha Life, Kyobo Life and KB Life now promote policies that let customers draw on amounts equivalent to much of their premiums while keeping some death coverage.
For example, Hanwha Life says customers who have paid all premiums can take the amount as a lump sum or spread it over two to eight years, within 20 years of the policy start.
The change responds to older people’s need for income in retirement as they face longer periods of paying their own living costs.
In South Korea, 79.7% of people aged 60 and over rely on themselves or a spouse for living expenses, and use of pensions or retirement benefits has increased.
The new products offer more ways to use policy money, but their appeal and performance as a sales strategy remain to be tested.
South Korean life insurers are promoting whole-life policies that let customers use funds while alive while retaining some death coverage.
The shift follows regulatory action that effectively ended sales of “700 whole-life” policies, which had emphasized high surrender values.
Insurers are presenting access to lump sums or instalments for living expenses as a new selling point.
The products target demand for retirement cash flow as people live longer and more older people fund their own living costs.
Samsung Life, Hanwha Life, Kyobo Life and KB Life are among the companies offering or promoting such policies.
- Who
- South Korean life insurers, including Samsung Life, Hanwha Life, Kyobo Life and KB Life.
- What
- They are shifting whole-life policies toward access to funds during a policyholder’s lifetime while retaining some death coverage.
- When
- The article reports the shift on November 3, 2026, and says major insurers have recently promoted these products.
- Where
- South Korea.
- Why
- Insurers are responding to older customers’ need for cash flow and to the effective end of “700 whole-life” policy sales after regulatory action.
This story does not have two clearly opposing sides.
The share of people using pensions or retirement benefits to fund living costs was 26.2%.
The article said major life insurers were promoting whole-life policies that allow customers to access funds while alive.
Maeil Business published its report on the shift in whole-life policies.
- Older people funding living costs
- 79.7% of people aged 60 or older do so themselves or with a spouse, according to the article.
- Pensions and retirement benefits
- Used by 31% of people funding living costs themselves or with a spouse in 2026, up from 26.2% in 2019.
- Hanwha Life policy
- Allows a lump-sum payment or “lifetime funds” over 2–8 years within 20 years of the contract date after premiums are fully paid.
- Samsung Life policy
- Allows customers to use an amount equivalent to premiums paid as annual payments or a lump sum after a deferment period.
- 700 whole-life” policies
- Sales effectively ended after regulatory action over concerns including possible confusion with savings products.
What people are saying
Life insurers are changing their sales strategy from emphasizing high surrender values to increasing the usefulness of whole-life insurance itself.
From the consumer’s perspective, this reduces the burden of having money tied up in whole-life insurance for a long time and broadens choices for using it for retirement living expenses, medical costs or supporting children.