Even a 70-year-old grandfather can join?

Competition for insurance for people with pre-existing conditions is fierce as the population ages.
You can sign up by simply meeting the simple notice items.
Premiums are more expensive than general insurance and coverage is limited
Be sure to check general insurance comparison and notification items, etc.

“Even a 70-year-old grandfather with diabetes can join.”

The simple insurance market has recently emerged as a new battleground for insurance companies. Simple insurance is a product called so-called pre-existing condition insurance that allows you to easily sign up with a simple notice even if you have a chronic disease, are old, or have had surgery. It is known that it is generally difficult for older people to sign up for insurance, so why do insurance companies try to secure them as customers?

◆ Entry into super-aging… Simple insurance subscription rate 67.3%↑

Korea is expected to enter a super-aging society in 2025 due to the continued decline in birth rate and increase in life expectancy. A super-aging society refers to a society in which the population aged 65 or older exceeds 20% of the total population. This change in demographic structure also has a significant impact on the financial market.

The insurance market is moving quickly to take advantage of the growing elderly population. Insurance companies are breaking the existing perception that ‘only healthy people can get insurance’ and are lowering the product threshold with products that even the elderly or those with a history of illness can sign up for.

In fact, the number of simple insurance subscriptions that lower the threshold has been increasing rapidly, from 3.61 million in 2021 to 4.11 million in 2022 and 6.04 million last year, showing an increase of 67.3% in three years. As the demand for insurance from the elderly and those with medical conditions continues to increase, insurance companies are competitively introducing various products to meet this demand.

◆ Significantly simplifies the review process for notification items

Simple insurance is characterized by literally simplifying the notification items and review process. Typically, you can sign up after passing a screening process and passing several questions about recent disease diagnosis, hospitalization, and surgery history. Coverage varies depending on the product, but it covers items for seniors ranging from various injuries and examination fees such as MRI to surgery fees.

A representative notification item is ‘3.5.5’. Senior citizens can also sign up if they meet the following conditions: ▲Doctor’s opinion within 3 months, ▲Hospitalization or surgery within 5 years, ▲Diagnosis of six major diseases or surgery within 5 years, etc.

Recently, as competition among insurance companies has intensified, the subscription threshold has been lowered by asking only about hospitalization and surgery, or the hospitalization and surgery history notification period has been subdivided into 1 year, 2 years, 5 years, and 10 years, etc. to make insurance premiums reasonable. Products that can be lowered have also appeared.

The age for signing up is usually 75 or 80 years old, and even people with mild chronic diseases such as high blood pressure or diabetes can sign up as long as they do not have a history of hospitalization or surgery.

◆ You must first check whether you have general insurance.

Just because the subscription threshold is lowered doesn’t necessarily mean it’s a good thing. From the insurance company’s perspective, concerns about loss rates are bound to be high because this product is aimed at elderly people who have a relatively high incidence of disease. Therefore, insurance premiums for people with pre-existing conditions are more expensive than general insurance.

For example, if a 50-year-old man subscribes to a cancer diagnosis special contract based on a 20-year maturity payment and an insurance amount of 50 million won, the premium for company A’s general insurance is 66,800 won, while the premium for the insurance for those with pre-existing conditions is 96,550 won. Run.

In addition, insurance for those with pre-existing conditions covers serious diseases such as cancer and cerebrovascular disease, but the specific coverage is more limited than general insurance. Therefore, it is essential to first check whether general insurance is available before signing up for insurance for those with a medical condition.

If you do not have any special health problems, there is no need to sign up for simple insurance with expensive premiums and limited coverage. You should avoid signing up just because it is easy to sign up without doing enough research.

In addition, since the main target of subscription is people with a medical condition, the notification obligation has been reduced. However, if you do not answer the notification items accurately, the contract will be terminated or you will not be able to receive insurance money, which is the same as general insurance. Although it is a simple process, it is important to note that the notice must be clear.

Reporter Jang Seul-gi [email protected]