Seoul: The country's financial regulator announced that holders of specific life insurance policies will soon have the opportunity to monetize their policies and receive them as pensions, assisting them in covering their later years.
According to Yonhap News Agency, the Financial Services Commission (FSC) has stated that individuals with whole life insurance policies from Samsung Life Insurance Co., Kyobo Life Insurance Co., and three other insurers will be eligible to receive their death benefits in advance as a pension starting later this month. This initiative is designed to provide financial support to policyholders during their retirement years.
Policyholders with other life insurance providers will have the option to convert their death benefits into pensions starting early next year. The financial regulator estimates that approximately 35 trillion won (US$24.5 billion) in death benefits could be subject to this new scheme.
The plan allows policyholders aged 55 and above to receive up to 90 percent of their death benefits. However, policyholders are required to have retained their policy for a minimum of 10 years to be eligible for this conversion.