Policy Loans Taken by the Elderly from Insurance Companies Soared Last Year

Policy Loans Taken by Seniors from Insurance Companies Last Year’s Spike #Policy #Senior Loans #Insurance #Company #Surge #Year Welcome to JibGlobe, here are the new resources we have for you today:

This file photo, taken June 22, 2022, shows bank officials handling a loan program at a bank in Seoul.  (Yonhap)

This file photo, taken June 22, 2022, shows bank officials handling a loan program at a bank in Seoul. (Yonhap)

SEOUL, July 5 (Korea Bizwire) — Loans extended to seniors over 60 from insurance companies surged last year, a lawmaker said Monday, citing data from the Financial Supervisory Service.

Loans taken by seniors aged over 60 from insurance companies totaled 11.16 trillion won (US$8.55 billion) at the end of December last year, up 10 percent from a year earlier, according to Rep. Jin Sun-mee of the main opposition Partying Democrats.

The rate of increase was twice as high as the overall average (5.5 percent).

Ordered by loan type, mortgage loans totaled 8.72 trillion won, up 8 percent from a year earlier.

Credit loans totaled 1.32 trillion won, up 17 percent.

The rate of increase in mortgage lending and credit among seniors over 60 years has exceeded the average rate of increase in mortgage lending (5.8 percent) and credit lending (2.2 percent).

The surge in lending among seniors over the age of 60 is largely due to the need for cash flow to sustain their livelihoods, which is provided as policy loans offered by insurance companies.

Policy loans offered by insurance companies take cancellation refunds as collateral. The debt service ratio does not apply to policy loans, without the need for separate review.

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