Samsung Life Insurance: "If Premiums Are Burdensome, Use the 'Contract Maintenance System'"

An analysis has emerged that utilizing the insurance contract maintenance system to keep the contract is more advantageous for consumers than terminating the insurance contract prematurely.

Samsung Life Insurance conducted a survey on the 26th targeting about 2,000 affiliated consultants regarding insurance contract maintenance. The main reason for terminating insurance contracts was found to be "economic burden (70.7%)." In last year's survey by the Life Insurance Association, the biggest concern among life insurance subscribers was "inflation and economic conditions (65.4%)." This figure has increased by more than 10 percentage points compared to three years ago.

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However, most consultants responded that maintaining existing insurance helps with economic stability. Regarding the main problems consumers face after terminating insurance contracts, 69.9% of survey respondents cited "financial losses due to coverage gaps in case of illness or accident." This was followed by "premium increases at the time of re-enrollment (16.9%)" and "rejection of re-enrollment due to changes in physical or health conditions (5.8%)."

Samsung Life Insurance explained that by utilizing the insurance contract maintenance system, contracts can be stably maintained. Samsung Life operates maintenance systems such as ▲reduction and paid-up reduction systems ▲insurance contract loan system ▲automatic loan premium payment system ▲insurance contract revival.

The reduction and paid-up reduction systems allow the coverage amount to decrease while maintaining the coverage period and payment conditions. The reduction system lowers the premium by reducing the coverage amount, and the reduced portion is considered a termination, with a surrender refund paid. The paid-up reduction system stops premium payments and uses the surrender refund at that point to determine a new insured amount and complete the payment.

The insurance contract loan system allows loans within the range of the surrender refund, with interest repayment. By using the automatic loan premium payment system, premiums can be processed as loan amounts within the surrender refund range.

Even after a contract is terminated due to non-payment of premiums, if the policyholder has not received the surrender refund, the insurance contract can be revived within a certain period. Unlike re-enrollment, the existing coverage can be maintained without additional premium burdens due to the insured's increased age.

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