"Signing Up for Insurance While Making Cake?"...Beware of Misselling Whole Life Insurance at One-Day Classes and Expos

Insurance Sales Using Free Classes and Expos as Lures

False Claims That Policies Are "More Advantageous Than Savings"

Spreading to Baby Fairs and Agricultural Cooperative Branches

Recently, there has been a surge in cases where consumers are encouraged to sign up for whole life insurance at various on-site events such as one-day classes and expos, prompting warnings for heightened consumer caution. Financial authorities have cautioned the public, stating that they have identified numerous cases of "misselling" that could mislead consumers into believing these are savings or financial investment products.

According to the Financial Supervisory Service on April 17, a typical method of promoting whole life insurance involves luring consumers with free trial experiences or events, and then separately organizing time for insurance sales. In October 2025, for instance, a mother and daughter who participated in a "Mango Cake Making" one-day class were told that whole life insurance is "more advantageous for building up a lump sum than savings deposits," leading them to sign up immediately. However, after realizing that the explanation was inaccurate, they filed a complaint. Since the history of the prize notification message and a recording of the misleading explanation were confirmed, the contract was canceled and the premiums were refunded.

Similar cases have occurred on secondhand trading platforms. In February 2026, a consumer who received a prize notification text for a free trial of the "Dujjonku Class" was encouraged to sign up for whole life insurance, which was promoted as a special deal and compared to savings and installment deposits. Although the consumer did not sign up, they filed a complaint as a suspected case of misselling.

Comparable situations have also occurred at major events such as baby fairs and wedding expos. In some insurance sales booths, attendees were encouraged to sign up for whole life insurance, being told that it was suitable for purposes such as children's education funds or financial investment. Authorities confirmed that contracts were signed based on these recommendations. The financial authorities stated that in cases where misleading explanations such as "more favorable than bank products" were confirmed by voice recordings or messenger logs, the contracts were canceled and the premiums were refunded.

Sales linked to in-house training programs at companies or courses at public institutions have also been flagged as problematic. There were cases where, during consultations following financial investment or tax-saving seminars, whole life insurance was explained as a product for inheritance or tax-saving purposes, or presented to military personnel as if it were similar to a savings product. There was even a case where employees at facilities for people with disabilities were targeted and encouraged to sign up. In all these cases, contracts were canceled when explanations were found to be insufficient or misleading.

Cases of misselling whole life insurance have also occurred at agricultural and livestock cooperative branches. During card issuance or work-related visits, foreign nationals or general customers were led to believe that whole life insurance was more advantageous than savings or installment deposits, prompting them to sign up. Financial authorities found that these cases also constituted misleading consumers into thinking the products were savings-type products, and thus processed premium refunds.

The financial authorities emphasized that there are three critical points consumers must check before signing up for whole life insurance. First, they stressed that whole life insurance is a protection-type product designed to ensure financial stability for the family in the event of the policyholder’s death, and is not suitable for savings or retirement planning purposes. If the policy is canceled before maturity, the refund amount may be less than the total premiums paid or even result in a loss, and even if converted to an annuity, the payout is often less than that of standard annuity products.

In addition, since whole life insurance is a high-value product with total premiums amounting to tens of millions of won, it is essential to carefully consider personal income level and the number of dependents before making a decision.

Lastly, the Financial Supervisory Service advised that if misselling is suspected, consumers should be sure to keep all related evidence—such as explanatory materials, voice recordings, text messages, and KakaoTalk conversations. An official from the Financial Supervisory Service said, "Describing insurance as if it were a savings product is a classic case of misselling," adding, "Consumers should be especially cautious about making impulsive decisions at event sites."

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