Shinhan Life to Launch 'Life Switching Savings Insurance,' Letting Customers Switch to Coverage When Needed After Saving

Shinhan Life said on October 28 that it plans to launch the “Shinhan Super SOL Life Switching Savings Insurance” on November 2. The product allows customers to build savings through a savings insurance policy and receive insurance benefits when they need health coverage in the future.

The product is the first in the industry to let customers choose when they need health coverage. Customers can enroll in the savings insurance policy to build funds for the future, then choose the type and amount of coverage and when it begins if their coverage needs change as their life circumstances evolve.

This feature is called the “Switching Plan.” After a one-time underwriting review when customers enroll in the main policy, they can later add 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.

Customers can use the funds accumulated in the savings insurance policy to prepare for coverage without any additional out-of-pocket costs. A portion of the policy reserve under the main policy is paid as a lump sum toward the premiums for the selected riders. Customers can decide, based on their circumstances, how much of the funds they have saved for the future to use for each type of coverage.

Customers can add riders through the Switching Plan starting 10 years after enrolling in the main policy and must apply at least two years before the date they want coverage to begin. Riders have a 10-year term, and eligibility for re-enrollment and the age limits for enrollment are determined by the criteria set for each rider.

The product is scheduled to be offered through the Shinhan Super SOL App. It comes in two options: “Type 1: Savings Only,” which focuses on savings, and “Type 2: Life Switching,” which offers access to the Switching Plan. The main policy is designed to provide coverage until age 100, with premiums payable over 20 years. The Switching Plan is available to customers who enroll in Type 2.

A Shinhan Life representative said, “Because customers maintain insurance policies for a long time, we developed this product to maximize convenience and let them choose which coverage to use and when.” The representative added, “We plan to continue introducing new products and services that broaden the ways customers can use insurance, including the Switching Plan, which lets them save for the future and choose the coverage they need as their lives change.”

This content was produced with the assistance of AI translation services.