Refer Report
Kyobo Life Insurance announced on the 27th that it has surpassed 100 contracts in just two weeks since the launch of Insurance Claims Trust.
An insurance claim trust is a system in which a trust company operates and manages death insurance money as desired by the policy holder and pays it to the trust beneficiaries. Insurance covering general death worth more than 30 million won (insurance contract loans not possible) is eligible, and if the policyholder and the insured are the same and the beneficiary is a spouse or lineal descendant, a trust contract can be concluded.
The payment method, amount, and timing of the death benefit can be customized to help beneficiaries receive insurance benefits tailored to their circumstances, and it is also evaluated as effective in preventing disputes due to inheritance.
Looking at Kyobo Life Insurance Claims Trust policyholders, 57% were women, which was higher than men (43%). This broke the common belief that male heads of households would mainly sign contracts, and it is analyzed that as women’s advancement into society increased and the number of female subscribers to whole life insurance increased, this led to insurance claim trust contracts.
By age, 6 out of 10 customers were in their 40s and 50s, which is the period when economic activity is most active. People in their 50s accounted for the most at 34%, followed by people in their 40s (32%), people in their 60s and 70s (26%), and people in their 30s (8%).
As for the death benefit, ’30 million to less than 100 million won’ accounted for the highest proportion at 52%, followed by ‘100 million to less than 500 million won’ (41%) and ‘500 million to less than 1 billion won’ (5%). , followed by ‘more than 1 billion won’ (2%).
The method of insurance payment according to the trust contract requested by the policyholder was ‘(minor) child support and monthly installment payment for education expenses’, which accounted for the highest percentage at 54%. This was followed by ‘monthly installment payment for spouse’s living expenses, medical expenses, etc.’ (22%), ‘dividend payment for living expenses for dependents’ (21%), and ‘lump sum payment after minor children become adults’ (3%).
Kyobo Life Insurance has been systematically preparing comprehensive property trust projects, including insurance claims trust, over the past two years in preparation for the aging era. In September 2022, the Comprehensive Asset Management Biz Promotion Task Force was established to enter the comprehensive property trust market, and in October of the same year, following the announcement of the Financial Services Commission’s trust business innovation plan, the company began securing comprehensive property trust professionals and building systems and infrastructure.
In addition, in June of this year, we received approval for a property trust business from the Financial Services Commission and established a lineup of comprehensive property trusts, including △Will Substitution Trust △Gift Trust △Trust for the Disabled and △Guardianship Trust. This time, we have expanded our scope to include insurance claim trusts. In July, the comprehensive asset management team was expanded and reorganized to form an organization of about 40 experts with comprehensive asset trust consulting capabilities, including lawyers, tax accountants, and wealth experts.
Kim Gye-wan, head of the comprehensive asset management team at Kyobo Life Insurance, said, “In order to realize the value of life insurance, we have been working hard to prepare an insurance claim trust that can design death benefits tailored to customers,” and added, “As a life insurance company, we are striving to guarantee customers throughout their lives while providing comprehensive property “We will further strengthen our capabilities as a comprehensive asset management company by providing customized one-on-one total solutions for customer assets using trust.”
Reporter Jang Seul-gi jsk9831@wowtv.co.kr
Source: Korean