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South Korea Profile: Setting Up Life Insurance

The Problem With Life Insurance For Expats Living In South Korea

Term life insurance is a smart way to plan for your estate’s future. When a payout is made, you can expect the death benefit payment to go to the beneficiary. Your loved ones will have to pay for your final arrangements, may have to pay off some of your debts and have to live without your financial contributions.

South Korea is a top choice among expats, from the United Kingdom to Europe and the United States.

As one of the most urbanized and “connected” countries in the world, expats like the multiculturalism of Seoul, the low crime and beauty of the area.

One thing expats need is insurance, but it’s difficult to get insurance in a foreign country if you aren’t fluent in the language. You’ll be signing a contract, and if you don’t understand a term or two, you may not know what your insurance offers.

Ideally, you’ll seek one of the following:

  • Term life insurance
  • Critical illness insurance

Securing both is the optimal choice.

Why Buying Term Life Insurance is a Problem in South Korea

South Korea has a great insurance market that may even be over-saturated. The market is thriving, but foreigners are left out of the market because they don’t speak Korean. Language barriers are stopping foreigners from entering into policies.

Language barriers are the top reason for not being able to secure insurance, according to The Korea Times.

Insurers, both domestic and foreign, don’t want to sell insurance to expats or offer language services for a few reasons:

  • Issues with mis-selling claims
  • Issues with not understanding emerging markets

You can’t truly know what coverage you’re being offered if you can’t read and understand the terms of the contract. Insurers in the country would rather not offer these services to foreigners and avoid potential conflict in the future.

Insurers demand that anyone that obtains life insurance understand the contract terms and conditions in Korean. Counselling services don’t offer enough peace of mind for many expats, and a lot of insurance companies do not offer this service.

So, how are people obtaining insurance?

How People Obtain Insurance in South Korea

As one of the world’s most connected countries, expats often seek out insurance online. Contracts and terms are available in a person’s own language, and it’s easy to get started online with a policy immediately.

Online policies, when chosen from the right carriers, can provide the insurance foreigners need when living in South Korea.

You might consider obtaining a policy in your home country, but there are drawbacks to this, too.

Why Seeking Life Insurance in Your Home County Isn’t Always a Good Choice

You may have friends or family in the insurance industry that can help you secure a life insurance policy that protects you and your family. Local companies provide fast service, but you’re not local.

The insurer will want to know your place of residency when taking out a policy.

If you’re living in South Korea, it’s unlikely that your home country will grant you a life insurance policy. Even if you’re able to obtain a policy, there’s a chance that upon your demise, the insurer will deny the claim.

Lying in the policy can void the policy, and if you’re an expat and don’t live in your home country any longer, your insurance may be invalid.

Sure, you can visit another country and even extend your stay for six months without an issue, but if you’re truly residing in another country, you’re taking a risk that a policy claim will be denied.

Seek Global Term Life Insurance or Critical Illness Insurance

Online insurers will provide you with a logical, easy-to-understand policy. You’ll want to seek expat term life insurance, or question the insurer on where the insurance is valid.

Global insurance is the best option, allowing you to maintain an expat lifestyle without worrying that your insurance policy may be void if you want to reside outside of South Korea in the future.

The right policy will transfer with you whenever you travel or move.

Online quotes allow you to quickly find an affordable, adequate life insurance policy that protects your family and estate when you pass on. With express underwriting, you can request a quote today and have a policy before the end of the week.

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