SEOUL, April 13 (Korea Bizwire) — The value of life annuity benefits has decreased sharply over the past twenty years as the average lifespan increased.
The age with a mortality rate of higher than 5 percent rose to 80 for men and 84 for women in 2019 from 73 and 78 in 2000, according to the latest report by the Korea Insurance Research Institute.
The extension of the average lifespan has led to an increase in the number of life annuity benefit receivers, resulting in a decline in the amount of per-capita life annuity benefits.
The report said that for a life annuity product that pays a benefit every month to male beneficiaries until their death if they make a lump-sum payment of 100 million won (US$88,920) at the age of 60, those who subscribed to the product in 2000 could receive 482,000 won per month.
However, the amount of monthly benefit dropped by 23.8 percent to 367,000 won for those who subscribed to the product in 2019.
The amount of monthly benefit for female beneficiaries also decreased by 19.9 percent from 380,000 won to 304,000 won.
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