Guide to Personal Banking and Finance Detail | 금융감독원 금융교육센터

Guide to Personal Banking and Finance

Guide to Personal Banking and Finance Detail
Ⅳ. Saving and Insurance (2)
Posting date 2019-12-18 Hit 296
Ⅳ. Saving & Insurance(2-2) private Insurance.pdf

Ⅳ. Saving & Insurance(2-1) Social Insurance.pdf

Ⅳ. Saving and Insurance (2)


2. Insurance

(1) What is Insurance?

      it is the product that one buys to prepare for future events (risks) like death, illnesses, disability, unemployment, and old age. In terms that insurance works by pooling money or premium from many and providing benefits to those who qualify, it is very different from savings with which we save on our own for our future. Signing up for insurance or buying an insurance policy means that you consent to what the insurance company promises to cover and to the premium you have to pay for a defined period of time. The insurance company will provide you the insurance amount when you make a claim for accident or upon maturity. If you cancel or terminate your insurance contract before it expires, you will not get back all or part of the premiums you have been paying. So make sure you learn and understand the terms and conditions of your insurance policy before you buy or cancel one.


(2) Common Types of Insurance

        Insurance is generally divided into two types: social insurance (Four major public insurance programs) offered by the government, and private insurance offered by private companies.

   ① Social Insurance (Four Major Public Insurance Programs): Public insurance is a social security system that the government provides for people`s benefits, and you are obliged to sign up for those social insurances

    - There are four major insurance programs: (1) National Health Insurance providing coverage for medical treatment and preventative healthcare; (2) Unemployment insurance providing temporary income support to the unemployed (those who have just been laid off or whose work contract ended) while they look for employment; (3) Industrial Accident Compensation Insurance providing compensations to individuals who were seriously injured or died in an accident at a working site; and (4) the National Pension Plan giving pension support to retirees or those who are too old to work.

   ② Private Insurance: In addition to the insurance system provided by the state, there are various insurances for death, illness, and retirement life provided by insurance companies.

    - There are various kinds of private insurance: Whole life insurance and term life insurance to protect family livelihood from financial difficulties due to death of family member, coverage insurance for health care including medical treatment, pension insurance for guaranteeing retirement life, and variable life insurance adding income from investment to insurance benefits covering losses resulting from accidents. 


 ▼ More Information: Coverage Insurance vs. Deposit-type Insurance ▼ 

Finding a product that suits me

  -  Coverage insurance: Insurance that focuses on protecting people from risks such as accidents, injuries and diseases during the policy period.

  -  Deposit-type Insurance: Insurance that focuses on raising money or preparing for retirement by accumulating a portion of the premium rather than risk coverage.

Types of Coverage Insurance and Deposit-type Insurance

  -  Coverage insurance: whole life insurance, term life insurance, illness insurance, cancer insurance, CI insurance, accident insurance, children`s insurance, indemnity insurance and other coverage insurance.

  -  Deposit-type Insurance: General savings insurance, pension savings insurance, (variable/ general) pension insurance, (variable/ general) universal insurance.


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