The country's financial regulator has said that holders of certain types of life insurance will be able to monetize their policies and receive them as pensions to help them cover their later years of life.
According to the Financial Services Commission (FSC), those who hold whole life insurance policies contracted with Samsung Life Insurance, Kyobo Life Insurance and three other life insurers can opt to receive their death benefits early as a form of pension, beginning later this month.
Holders of policies with other life insurance companies will be able to decide whether to convert their death benefits into pensions early next year.
The financial regulator said some KRW35 trillion (US$24.5 billion) worth of death benefits are estimated to be subject to the scheme.
Under the plan, policyholders aged 55 and above are allowed to receive up to 90% of their death benefits.
But they are required to retain the policy for at least 10 years, reported Yonhap.