Understanding Special Contracts in Insurance Policies

When reviewing insurance policies, it’s common to come across special contracts with unfamiliar names. These contracts can increase insurance premiums and burden consumers, while generating profits for insurance companies and planners.

A special contract that only increases insurance premiums is often referred to as a “Sudulook.” For example, a monthly insurance premium for diagnosing chronic diabetes complications might be 360 won, resulting in a total of 86,400 won over a 20-year payment period.

The Importance of a “Special Contract Diet”

Eliminating special contracts with low cost-effectiveness from existing insurance policies is crucial. Insurance industry officials advise checking for special family histories or underlying diseases and getting high coverage amounts for those areas.

To put it simply, there’s no need to pay more than the diagnosis fee for the three major diseases (cancer, brain, and heart) and actual loss insurance.

Four Special Provisions to Avoid

There are four special provisions that are not recommended. Firstly, special provisions for “disability after disease” are often not included in insurance policies. Even if you receive 30 million won (guaranteed amount), the guaranteed amount varies depending on the disability rate.

Secondly, special contracts for “injury and disease hospitalization daily allowance” should be carefully considered. Insurance premiums are relatively expensive, and hospitalizations are becoming shorter, making it difficult to get all of the actual premiums paid back as insurance money.

Thirdly, special contracts for “re-diagnosis cancer” are also questionable. The insurance premium for general cancer diagnosis is around 10,000 won on top of 10 million won (guaranteed amount) for people in their 40s. However, the price for re-diagnosed cancer goes up to 12,000 to 3,000 won, with a waiver period of about 1 to 2 years.

Lastly, special contracts for “cancer surgery expenses” have high insurance premiums compared to coverage. The biggest advantage is that the cancer surgery fee is paid repeatedly, but having cancer does not necessarily mean you will have to have surgery.

Conclusion

When reviewing insurance policies, it’s essential to carefully consider special contracts and their cost-effectiveness. If there’s an ambiguous special contract, you can reduce the insurance amount to lower the insurance premium or remove it altogether.