"Insurance Policy Loans Exceed 13 Trillion Won for Those Aged 60 and Over...Urgent Support Needed for the Elderly"

[Asia Economy Reporter Oh Hyung-gil] The outstanding balance of insurance policy loans among seniors aged 60 and over has steadily increased over the past five years, exceeding 13 trillion won. There are calls for policy review and measures to address the rise in livelihood loans among the elderly, who are in an economic blind spot.

According to data received by Jeon Jae-su, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, from the Financial Supervisory Service on the 27th, the outstanding balance of insurance policy loans for seniors aged 60 and over as of the end of the first half of this year was 13.2481 trillion won.

At the end of 2016, it was 7.8816 trillion won; at the end of 2017, 9.1759 trillion won; at the end of 2018, 10.8624 trillion won; at the end of 2019, 12.2359 trillion won; and at the end of 2020, 12.7285 trillion won.

An insurance policy loan is a system that allows the policyholder to borrow a certain amount within the surrender value of the insurance policy they have subscribed to. Since loans can be obtained regardless of screening or credit scores, it is called a livelihood loan.

Representative Jeon said, "The elderly are taking livelihood loans by using their retirement preparation means as collateral to overcome COVID-19 and the economic recession," adding, "Since they are exposed to high interest rates of 6 to 8% per annum and the risk of insurance contract cancellation, it is urgent to review support policies and prepare countermeasures for the elderly who are in an economic blind spot."

This content was produced with the assistance of AI translation services.