“Save when young, get coverage as you age” — Shinhan Life designs industry-first “switching” plan

[Financial News] Shinhan Life has designed an industry-first product that lets customers receive insurance benefits when they need health coverage while accumulating funds.
According to Shinhan Life on the 28th, “Shinhan Super SOL Life Switching Savings Insurance (Non-Participating)” will launch on November 2.
The product allows customers to choose for themselves when they will need health coverage. It is the first structure of its kind in the industry.
Customers can initially enroll in savings insurance and build up funds, then directly choose not only when coverage begins but also its type and amount if their coverage needs change as they move through life. The product combines savings and coverage.
Shinhan Life has implemented this through a “Switching Plan.” After undergoing underwriting once when enrolling in the main contract, customers can later enroll in the riders they need without further underwriting, subject to the conditions set out in the product. Available coverage includes diagnoses of cancer, cerebral hemorrhage and acute myocardial infarction, as well as dementia and death.
Riders can be added starting 10 years after enrollment in the main contract. Customers must apply in advance at least two years before enrolling in a rider. Riders have a 10-year term, and criteria such as re-enrollment and eligible enrollment age vary by rider.
Two types are offered: “Type 1: Savings Only,” focused on savings, and “Type 2: Life Switching,” which can be used with the Switching Plan. The main contract is designed to provide coverage until age 100, with premiums paid over 20 years; the Switching Plan can be used by enrolling in Type 2.
Coverage is funded from the money accumulated in the savings policy, with no additional out-of-pocket cost. Part of the policyholder’s reserve under the main contract is paid as a lump sum to cover premiums for the selected riders. Coverage can also be concentrated in a specific age range. In other words, the start dates for cancer and dementia coverage can be set differently.
A Shinhan Life representative said, “We have maximized convenience by allowing customers to choose for themselves what coverage to use and when,” adding, “We will continue to introduce new products and services in ways that expand the range of ways customers can use insurance.”

[email protected] Kim Tae-il Reporter