ABL Life Insurance said on the 16th that it has launched a simplified health insurance product that people with prior medical conditions can buy after a streamlined underwriting review. The policy, formally named Woori WON (3.10.5) Simplified Health Insurance (no-surrender-value type), offers premium discounts of up to 10% based on a health rating and lets buyers choose the coverage period for major illnesses.
The product is designed so that applicants who cannot qualify for standard underwriting can still buy coverage as long as they do not fall under three disclosure items. The items are whether the applicant has been hospitalized, undergone surgery or been advised to take additional or repeat tests within the past three months, or has received a confirmed or suspected disease diagnosis; whether the applicant has been hospitalized or undergone surgery, including a cesarean section, because of illness or an accident within the past 10 years; and whether the applicant has been diagnosed with, hospitalized for or operated on for one of seven major illnesses within the past five years.
The seven illnesses are cancer, angina, myocardial infarction, stroke, liver cirrhosis, heart valve disease and chronic kidney disease requiring dialysis. Applicants with a history of past treatment can still buy the policy if they do not fall under the disclosure items, lowering the barrier for people with prior illnesses.
The policy also discounts premiums on both the main contract and optional riders by up to 10% each, depending on the health rating. The rating is calculated on a scale of 1 to 9 through the mobile app LOG, based on health status and medical use records. A rating closer to 1 indicates better health, and the discount can grow as health records improve.
Buyers also have more choice in how they structure coverage for major illnesses. Diagnosis riders for general cancer, minor cancer, cerebrovascular disease and ischemic heart disease can be bought with coverage ending at age 80, which lowers the premium payment burden. Policyholders can then decide at age 80 whether to extend the coverage for life.
Kim Soon-jae, head of ABL Life's product division, said the product was designed to lower the barrier for customers who had difficulty buying insurance because of their medical histories, while offering premium discounts to healthy customers based on their health ratings. He added that the company will continue to develop practical products that reflect a range of customer needs.
