Insurance Guide
This is a comprehensive guide to designing insurance coverage suited to a family's life cycle and efficiently managing existing insurance.
The Essence of Insurance
Insurance is a risk transfer instrument. It is not savings or investment.
보험의 역할: 감당할 수 없는 경제적 위험을 보험사에 전가
보험의 역할이 아닌 것: 수익 창출, 절세, 저축
Core Principles
- Coverage First: Secure protection-type insurance before savings-type insurance
- Appropriate Premiums: Keep within 7~10% of household income
- Life Cycle Response: Redesign coverage according to events such as marriage, childbirth, and retirement
- Eliminate Duplication: Organize duplicate enrollments for the same coverage
- Caution with Renewable Types: Renewable types see premiums surge as you age
Insurance Product Classification System
| Major Category |
Subcategory |
Key Products |
Priority |
| Life Insurance |
Death Benefit |
Term Life Insurance, Whole Life Insurance |
Most Essential |
| Life Insurance |
Savings-Type |
Annuity Insurance, Variable Insurance |
After Securing Coverage |
| Non-Life Insurance |
Medical Expenses |
Medical Expense Insurance |
Top Priority |
| Non-Life Insurance |
Diagnosis Benefit |
Cancer Insurance, Brain/Heart Insurance |
High |
| Non-Life Insurance |
Everyday Risks |
Driver's Insurance, Fire Insurance |
By Situation |
| Third Insurance |
Illness/Injury |
Illness Insurance, Injury Insurance |
Medium |
Enrollment Priority Framework
1st Priority: Must Enroll
| Product |
Reason |
Appropriate Coverage Amount |
| Medical Expense Insurance |
Reduces medical expense burden |
One each for covered/non-covered |
| Term Life Insurance |
Family living expenses in case of death |
Annual income x 5-10 times |
| Cancer Insurance |
Diagnosis benefit + treatment cost burden |
Diagnosis benefit of 30 million won or more |
2nd Priority: Strongly Recommended
| Product |
Reason |
Appropriate Coverage Amount |
| Cerebrovascular/Heart Disease Insurance |
Preparation for the 3 major diseases |
Diagnosis benefit of 30 million won each |
| Driver's Insurance |
Traffic accident legal/fine |
Criminal settlement money of 100 million or more |
3rd Priority: Enroll by Situation
| Product |
Target |
Notes |
| Whole Life Insurance |
High-income households, inheritance needs |
Regular insurance priority review |
| Children's insurance |
At childbirth |
Fetal rider can be included |
| Fire insurance |
Homeowner |
Verify mandatory insurance |
Core framework for coverage analysis
4-step gap analysis
1단계: 현재 보장 목록화
→ 모든 보험증권의 보장 항목, 보장금액, 보험료, 만기 정리
2단계: 필요 보장 산정
→ 가족 구성, 소득, 부채, 생활비 기반 필요 보장액 계산
3단계: 갭(Gap) 식별
→ 부족 보장: 추가 가입 필요
→ 과잉 보장: 정리 또는 감액 검토
→ 중복 보장: 하나로 통합
4단계: 리밸런싱 실행
→ 우선순위에 따라 순차적으로 조정
Premium adequacy check
| Category |
Appropriate ratio |
Warning level |
| Total protection-type premiums |
5–7% of income |
Excessive if over 10% |
| Total savings-type premiums |
0–3% of income |
Review if over 5% |
| Total premiums |
7–10% of income |
Risky if over 12% |
Criteria for cleaning up unnecessary insurance
Consider cancellation or reduction if any of the following applies:
- Duplicate coverage: Enrolled in 2 or more of the same coverage
- Excessive savings: Insurance that only saves without coverage function
- High-cost renewable type: Premiums after age 60 are excessive relative to monthly income
- Necessity expired: Education expense coverage after children's independence, decreasing term insurance after loan payoff
- Return reversal: Savings insurance return < market deposit interest rate
Life cycle insurance strategy
| Life stage |
Core coverage |
Adjustments |
| Entry-level worker (20s) |
Medical expense, cancer, small regular insurance |
Minimize premiums, build basic coverage |
| Marriage/newlywed (early 30s) |
Increase regular insurance, comprehensive coverage |
Add spouse coverage |
| Childbirth/parenting (30s) |
Children's insurance, strengthen regular insurance |
Expand death benefit |
| Children's growth period (40s) |
Strengthen health insurance, prepare pension |
Recheck coverage for 3 major diseases |
| Children's independence (50s) |
Nursing insurance, pension conversion |
Clean up unnecessary coverage |
| Retirement (60s~) |
Maintain medical expense, nursing/care |
Minimize premium burden |
Checklist for insurance consultation
□ 현재 가입 중인 모든 보험 증권 확인
□ 월 보험료 총액 및 소득 대비 비율 계산
□ 가족 구성원별 보장 내역 정리
□ 중복 보장 여부 확인
□ 갱신형 보험의 미래 보험료 추정
□ 보장 만기 시점 확인
□ 최근 보험금 청구 이력 확인
Detailed guide
