Concept & Characteristics
LifeInsurance
Contract between policy owner andinsurer
Insurer agrees to pay a sum of money upon theinsured individual’s death or other event, such as terminal illness or critical illness
Two major categories
Protection policies
Investment policies
Characteristics
Two major Characteristics ofLifeInsurance
1. Eventual Certaint
high school and Yonsei University business administration in sequence. Right after the university graduation, he entered Samsung Insurance in 1987. Working about 10 years inthe company, he grabbed a chance of studying in Wharton school in Pennsylvania with the company’s financial support. After two years of education inthe school, he gained master’s degree and came back tothe company.
and medical technology development, medical cost paid by old people increase.
If this situation is continued, account of health insurance will have a deficit.
Korean use seventy or eighty millions of money as medical cost all their lifeand half oftheir medical cost is used after 65-years-old.
Korea face an aging-society, so economic action of man inthe prime oflife is very important. Ther
(2) Long Term Care in Korea
In July 2008, Korea introduced social insurance for long-term care. There are several
important demographic and social changes leading totheintroduction of long-term care
(LTC) insurance, including the rapid ageing of population as a result oftheincrease inlife expectancy andthe sharp decline in fertility. Total fertility rate is below 1.1 in 2005 (NSO,2007).
● Non lifeinsurance in Korea has the history of about 49 years, at first Chosen Fire and Marine Insurance Company was established in 1922.
● After the last world war, a number ofinsurance companies were founded to carry on fire or marine insurance, and some companies gradually extended their activities to a host of other kinds of non-lifeinsurance like automobile insurance in nine com