Hundreds of millions of won in death insurance, passed on to his children. What if you're worried about getting scammed?

■ Broadcast: YTN Radio FM 94.5 (09:00-10:00)
■ Host: Reporter Cho Tae-hyun
■ Air date: January 21, 2025 (Tuesday)
■ Talk: Woori Bank Trust Department's new trust expert

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information.
◇ Reporter Cho Tae-hyun (hereinafter referred to as Cho Tae-hyun): This is a segment that delivers information on YTN radio's vivid economy and the trend of becoming rich. It's a trend for the rich. The person I'm meeting today is a new expert in Woori Bank's trust department. Please come in.

◆Woori Bank Trust Department Trust Specialist (hereinafter referred to as Shin Gwan-sik): Hello?

◇ Cho Tae-hyun: I heard you brought this part of life insurance trust today, but the Enforcement Decree of the Capital Markets Act was revised in November last year. I heard that there was something unique about it. It has become possible to sell insurance claims trusts that combine life insurance and trusts. What the hell is this? I can't get a clue just by the name.

◆New type: To put it simply, it's a combination of life insurance and trust. First of all, I can tell you about a kind of property management delegation contract where the person who owns the consignor's property is entrusted to a trustee, such as a trust company, for this purpose.

◇ Cho Tae-hyun: So a trust combined with life insurance is considered an insurance claim trust? So what do you guarantee in this product?

◆New type: For example, in the case of life insurance, unusually, death insurance is incurred when someone dies in the insurance contract. But death insurance money is incurred, and in general, death insurance money comes out as a lump sum. Unlike retirement pensions, like retirement benefits. In that case, ordinary people can find and spend a lump sum, but if you have a minor in your deceased family, a spouse with dementia, or a spouse in a hospital, or you have an income activity and you still have young children or live abroad, you may be at risk of being scammed by someone else when you find the insurance as a lump sum, or if you have a disabled person, you may feel a little uneasy about finding it. Some people are actually better off taking a little bit of living expenses, medical expenses, or nursing expenses rather than a lump sum. In the case of life insurance, death insurance comes out as a lump sum. I see that there is a need for a long-term system for people who will manage this, and trust this part to be entrusted to the trust, and if I die, receive this insurance money and give it to my underage children in living expenses and education expenses regularly. Or give it to me when you get married or raise it from inheritance tax. Or, give it to your spouse when he or she has income activities, but there is a shortfall. In this area, a trust that is divided into a monthly amount or a regular amount can be called an insurance claim trust.

◇ Cho Tae-hyun: It's something that gives you a clear sense of what the characteristics and advantages are, but can this claim arising from all insurance contracts also be a trust property?

◆New ceremony: No. It's a little restrictive. First of all, the first is a life insurance contract, so insurance money comes out when you die after a car accident in auto insurance. You can't do that. It should be a life insurance contract. The second is pension insurance, savings insurance, and cancer insurance among life insurance contracts, but other than that, it should be life insurance or regular insurance that mainly covers death.

◇ Cho Tae-hyun: There are many restrictions. What else is there?

◆New type: And there are three main categories of insurance: there are policyholders who pay insurance premiums, and there are cases where, for example, when you die, I pay insurance premiums, but when your spouse dies, you get death insurance. And when your spouse dies, the person receiving the insurance money can be your child. So, anyway, the person who pays the insurance premium and the person subject to the insurance accident due to death must be the same. For example, both of them have to be fathers, and the death insurance money generated here has to be a family member treated like this by a spouse, child, or grandchild. And I would like to say that the size of the general death insurance should be more than 30 million won.

◇ Cho Tae-hyun: There are a lot of conditions. It means that only life insurance contracts that incur life insurance or regular insurance general death insurance are possible, so what else should I keep in mind?

◆New type: You should also pay attention to trusts. This is because the trust company will be in charge of the person who receives and pays the insurance money in the event of an insurance accident. Or it will be administered by the trustee. In this case, there should be more than 30 million won in death insurance in this insurance contract because it is related to trust contracts, but there should be no insurance contract loans. There may be loans in the insurance contract, so it must be specified that it is invalid in that regard, and the consignor of the trust contract must be the policyholder, and the beneficiary of the trust contract must be a direct descendant of the consignor's family, that is, the spouse, and there are things that require some conditions specified by the Financial Services Commission.

◇ Cho Tae-hyun: I always feel this, but in times like this, I think it's most convenient to just go and ask experts. So, I think it would be a little easier to understand if you could explain the case of using an insurance claim trust, so what are the examples?

◆New type: One of the actual customers' questions was a businessman, and he was 45 years old when he started his business. He's about 55 years old now. He got married a little late because he was running a business. But the business is going well, but there are two children, one is non-disabled and the other is disabled. Since I'm doing my own business, I have some assets and some debt. In this case, this person signed a life insurance contract three or four years ago. Death insurance is 200 million or more. But he was diagnosed with cancer six months ago. Since he is separated from his spouse, he has assets and debts, while he has about 250 million won in death insurance when he dies.

◇Cho Tae-hyun: Apart from cancer insurance

◆New type: Apart from life insurance. However, the average non-disabled child is an adult who is not worried, and the disabled child is a minor. If this person dies, the insurance money itself is a disabled child, but will the disabled child be able to find it well? And even if he does, it is a large amount of money over 250 million won, but if his child helps others, he or she will be taken away by those who approach him. In that regard, you are planning a trust contract to provide half of the money when he comes of age after regularly providing support for education or some medical expenses, and to provide support when he gets married or gets married even though he is disabled later, and to pay living expenses, adult, and marriage regularly in this area. As I said before, not only people with disabilities, but also if you have a minor child, and if you have a spouse, you have a spouse, but you have dementia, and you have children living abroad, so you have to have a funeral for a while and go again. But death insurance is not paid right away, but there are a few procedures, so there are those parts. In fact, many businesses subscribe to regular life insurance. In line with the trend of the rich, these people have business assets but also a lot of debt. There are also parts where life insurance can be used to raise funds for inheritance tax, as there are parts where you have to pay off the debt when you inherit it. But if you use this well, you'll get a lot of inheritance tax. Then, if the inheritance tax exceeds 20 million won, you have to pay an annual pension. If you receive death insurance money from those parts that can be paid separately for 5 or 10 years and don't use the financial resources anywhere else, so that you can receive it annually when you pay in annual installments, you can receive all the other assets. In that regard, the insurance claim trust is being used because it can be used to raise funds for inheritance tax and to raise funds for annual pension. However, so far, there are people who like to come out as a lump sum. But for those who will receive a lump sum, ordinary people will receive it, but if there are certain peculiarities of a beneficiary and various conditions related to property, it would be better to use it as a trust.

◇ Cho Tae-hyun: This is done by a trust company, right?

◆New type: Yes, that's right.

◇ Cho Tae-hyun: Okay. I think it will be more utilized than I thought, but I think it would be better to go and consult for more information. So far, we have talked about various things with Woori Bank's trust department's new official ceremony expert. Thank you for talking today.

◆New ceremony: Thank you.

#Insurance money #trust #lifeinsurance #deathinsurance #pension #child #inheritance tax #annualannualannualpayment #property # lump sum