New Pension Products Launched for the Disabled


In a Korean movie titled Marathon, the mother of the main character who was born as an autistic child said to his marathon coach. ‘My last wish is that I live just one day more than my son does.’ This line touched the hearts of so many audiences because it very well showed the huge love of parents.

It also reflects the worry of the families who raise disabled children. After their parents pass away, disabled people are easy to suffer financial trouble. However, these families can be relieved such anxiety. Two insurance companies, KDB life insurance and NH NongHyup life insurance, launched special pension products for the disabled last May.


FSC Chairman Shin Je-Yoon visited Seoul Gyeogun School, a school for the handicapped students last April. He participated in a conference with the disabled and the parents of the disable to discuss about the improvement of financial system for the handicapped. He said that the financial sector so far has not been paying enough attention for the socially vulnerable people and ordered that the industry put more efforts in satisfying each individual’s needs rather than seeking profit. In a bid to do so, he proposed the introduction of pension for the disabled.

The new pension products are designed to benefit the disabled in accordance to their life cycle. It offers over 10% raise in its insurance. In addition, the pensionable age of this product is various from 20, 30 and 40. Ordinary pension product only allows people older than 45 to receive insurance. It’s because handicapped people are usually difficult to find means of living after parents’ death. If the disabled keeps the insurance contract for more than 10 years, he or she can be offered 15.4% interest-income tax exemption.

Can those insurance companies afford to operate and manage such pension products? It shouldn’t pose any financial burdens to them because those products are developed to be based on the disable’s life expectancy which is shorter than ordinary people’s in average. The companies apply pension-saving expense (8% of premium) which is cheaper than ordinary pension expense (11%) to lower the insurance management cost. Furthermore, if the pension product is sold via online marketing channel, it is possible to lower the expense to 4%.

All of those with physical handicaps registered in the Ministry of Health and Welfare are applicable for the policy.


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