Insurance in Korea
What should you check in a Korean insurance policy and its terms?
After receiving a Korean insurance contract, review the policy document and the policy terms together. The policy document usually identifies the policyholder, insured person and beneficiary, the policy period, the coverages purchased and the insured amounts. The policy terms explain in more detail when each coverage pays, when it does not pay, any out-of-pocket amount, the policyholder’s duties, and the procedures for cancellation, renewal and claims.
Start with the people and their roles. Check who pays the premium and manages the contract as policyholder, who is protected as the insured person, and who receives a benefit as beneficiary. These may be three different people, particularly in a policy arranged for a family member.
Next, check the scope and period of coverage. Do not infer coverage from the product name alone; check the coverages you actually selected. Products with the same name can provide different protection depending on the optional endorsements chosen. Confirm when coverage begins and ends, whether the policy renews, whether you must enroll again, and whether the premium or terms may change at renewal.
Third, review restrictions on payment. Look for exclusions, waiting periods before coverage starts, periods with reduced benefits, out-of-pocket amounts, per-claim and annual limits, limits on the number of covered events, and exclusions for particular conditions or parts of the body. Conditions and exceptions attached to a coverage statement may matter more than the statement itself.
Fourth, check what must be disclosed before the contract and reported afterward. Identify the questions you must answer accurately when applying and whether changes in your occupation or risk must later be reported to the insurer. Intentionally or through gross negligence failing to disclose an important fact can affect the contract or payment of a claim.
Fifth, check how to make a claim. Confirm the required documents, any claim deadline, and whether you can claim online, by mobile app, by post or in person. If you may leave Korea, also check whether you can view the policy, file a claim and change contact details from abroad.
Finally, compare the application, product information and policy document. Contact the insurer promptly if a requested coverage is missing, an unwanted endorsement has been added, or the policyholder or beneficiary details are different.
How this article differs from article 7
- This article: how to read a policy document and policy terms you have already received.
- Article 7: the full checklist for deciding whether to enter the contract in the first place.
Checklist
- Policyholder, insured person and beneficiary
- Coverage names and insured amounts
- Policy period, renewal and re-enrollment
- Exclusions, reduced-benefit periods and waiting periods
- Out-of-pocket amounts, limits and frequency limits
- Duties to disclose and report changes
- Premium-payment period and the effect of non-payment
- Surrender value or disadvantages of early cancellation
- Claim procedure and required documents