Life Insurance for Foreigners

The number of foreign life insurance policy holders residing in South Korea increased by an annual average of 16.2% between 2011 and 2015.
The number of foreign life insurance policy holders residing in South Korea increased by an annual average of 16.2% between 2011 and 2015.

 

The Korea Insurance Development Institute announced on May 7 that the number of foreign life insurance policy holders residing in South Korea increased by an annual average of 16.2% between 2011 and 2015, when the number of foreigners residing in South Korea increased by an annual average of 3.9%. As of the end of 2015, 16% and 22% of the foreign males and females residing in the country held a life insurance policy, respectively. For reference, the ratios were 62.9% and 65.3% for South Korean males and females in the country.

Those aged 60 or more accounted for the largest portion of the foreign life insurance policy holders residing in South Korea. Specifically, 26.3% and 38.8% of the foreign males and females in that age group held a life insurance policy. When it comes to South Koreans dwelling in the same country, those in their 30s, 40s and 50s took the largest portions.

46% of the foreign males were group insurance policy holders, followed by health insurance (20%), accident insurance (14%) and cancer insurance (7%). Concerning the foreign females, health, accident and cancer accounted for 28%, 19% and 14%, respectively. The institute explained that this difference is because many of the foreign males are residing in the country for employment purposes and many of the foreign females are doing so for marriage immigration, permanent residency, visiting, etc.

In terms of insurance benefit payment, death and diagnostic benefits took the largest portions on the part of the foreign males and females, respectively. They showed a higher death and accident benefit payment ratio than the South Koreans, too. 81% of the foreigners who received death or accident benefits were those working in the manufacturing sector. 

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution