Two plan types available: Life Balance and Premium Coverage

Customized death benefits for policyholders

Refund amount grows with increased premium payments

Hypertension and diabetes riders also available

[Heungkuk Life Insurance]
[Heungkuk Life Insurance]

Heungkuk Life Insurance, a financial affiliate of Taekwang Group, announced Thursday the launch of its Flex Return 100 Whole Life Insurance, a product that allows policyholders to receive monthly refunds of paid premiums in retirement while also providing death and health coverage.

The product is the first whole life insurance policy to adopt a "premium-linked payback" structure, in which paid premiums are returned monthly during retirement. Customers can choose between two plan types — Life Balance and Premium Coverage — based on their coverage needs and financial circumstances.

Under the premium-linked payback structure, the amount a customer will receive in retirement is directly tied to what they paid in, making it easier to estimate future income. For example, a policyholder who pays 200,000 won ($149) per month for 20 years would receive 200,000 won per month for 20 years once the refund period begins.

Premium refunds begin on the policy anniversary date when the insured turns 65, or upon completion of premium payments, whichever comes later.

Under the Life Balance plan, the death benefit decreases by the amount refunded, though the remaining death coverage stays in force for life. The Premium Coverage plan is designed for customers who want both refunds and full death protection — premiums are returned monthly while the death benefit remains intact with no deductions.

Customers may also opt for an "increasing premium" structure, in which higher payments translate into larger future refunds. Premiums rise by 5 percent after a set payment period, and the refund amount increases accordingly. During periods of higher spending — such as when children's education costs peak — policyholders can pause or resume the premium increases based on their financial situation.

The product also includes riders covering hypertension and diabetes. If a policyholder meets the qualifying conditions for either condition before the refund period begins, they can receive monthly benefit payments throughout the refund period. If the conditions are met during the refund period, benefits are paid for the remainder of that period. Depending on the qualifying conditions, monthly payments can continue for up to 30 years.

The product earned recognition for its differentiated structure even before launch. The premium-linked payback structure and the inflation-linked premium discount system each secured three months of exclusive usage rights, giving a single product two such designations. The inflation-linked premium discount system adjusts the discount rate based on the inflation rate — specifically, the discount equals the 5 percent premium increase rate minus the inflation rate. When inflation is at 2 percent, the Bank of Korea's price stability target, the discount rate applied is 3 percent.

"As South Korea enters a super-aged society, the importance of retirement cash flow is growing alongside rising life expectancy, and the need to prepare for age-related health risks is also increasing," said Kwon Yong-cheol, head of the product development team at Heungkuk Life. "This product is designed to help customers prepare not only for death coverage, but also for living expenses and health-related protection during their lifetime."


won@heraldcorp.com