The market growth can be explained by the changing demographic situation in the country. “According to the Statistical Agency of Korea, the aging population segment (people aged 65 years and older) was 17.5% in 2022. This figure is expected to reach 20% in 2025. Such a jump will lead to a sharp increase in demand for retirement annuities and other long-term life insurance products,” explained GlobalData insurance analyst Prasanth Katam.
South Korean retirement life insurance is part of the social security system. The main goal of this program is to provide financial support to older people and their families in the event of loss of a breadwinner.
Program participants are required to pay regular insurance premiums. The amount of premium may depend on working person’s income.
In case of death of a plan participant, their beneficiaries are entitled to receive insurance benefits.
Photos are from open sources.