Article 25 (Insurance Profit of Savings Insurance)

In paragraph ①, "insurance contract" refers to any of the following contracts. <Amended by Act No. 4990, Dec. 30, 1995; Act No. 5585, Dec. 31, 1998; Act No. 6153, Mar. 28, 2000; Act No. 6301, Dec. 29, 2000; Act No. 7167, Feb. 19, 2005; Act No. 7661, Aug. 19, 2005; Act No. 7851, Feb. 9, 2006; Act No. 11395, Jul. 24, 2012; Act No. 11646, Feb. 15, 2013; Act No. 11865, Jun. 11, 2013; Act No. 17132, Feb. 28, 2025> 1. Life insurance contracts or non-life insurance contracts under the Insurance Business Act. 2. Life deduction contracts or non-life deduction contracts conducted by institutions falling under any of the following subparagraphs, according to their respective laws. 가. Deleted <Feb. 15, 2013> 나. The National Federation of Fisheries Cooperatives and the cooperatives thereunder, under the Fisheries Cooperatives Act. 다. Deleted <Dec. 31, 1999> 라. The National Federation of Credit Unions, under the Credit Unions Act. 마. The Saemaul Undong Central Federation, under the Saemaul Undong Act. 3. Post Office insurance contracts under the Postal Savings and Insurance Act. 4. Contracts similar to those in subparagraphs 1 through 3, which are contracts where money and other benefits are promised to be paid upon the occurrence of an accidental event for the purpose of risk coverage, in exchange for consideration.

) subscribed to by the policyholder] is less than or equal to the amount according to the classification of the following items. Provided, however, that cases where the period from the date of the first premium payment (hereinafter referred to as "initial payment date" in this Article) to the maturity date or mid-term termination date is less than 10 years, but the paid premiums are paid in installments in annuity form for a fixed period before the expiration of 10 years from the initial payment date, are excluded. 가. For insurance contracts concluded by March 31, 2017: 200 million won. 나. For insurance contracts concluded from April 1, 2017: 100 million won. 2. Monthly installment savings insurance that meets all of the following requirements: 가. It shall be a monthly installment insurance contract with a payment period of 5 years or more from the initial payment date. 나. The basic premium paid monthly from the initial payment date shall be uniform (including cases where the basic premium is increased within one time the initially contracted basic premium), and the advance payment period for the basic premium shall be within 6 months. 다. The total sum of premiums paid monthly per policyholder [referring to the total sum of premiums paid monthly, such as basic premiums and additional premiums, calculated according to the method prescribed by the Ministry of Economy and Finance, for all monthly installment insurance contracts (excluding insurance contracts where the amount refunded at maturity does not exceed the paid premiums, as prescribed by the Ministry of Economy and Finance) subscribed to by the policyholder] shall be 1.5 million won or less (limited to insurance contracts concluded from April 1, 2017). ④ "Whole-life annuity insurance meeting the requirements prescribed by Presidential Decree" in Article 16(1)9(b) of the Act refers to whole-life annuity insurance that meets all of the following requirements from the time of concluding the insurance contract (excluding contracts in subparagraph 2(4) and insurance contracts concluded under the proviso to Article 3 of the Insurance Business Act). <Newly added by Act No. 11646, Feb. 3, 2017; Act No. 17132, Feb. 28, 2025; Act No. 17281, Oct. 1, 2025> 1. The policyholder shall receive insurance proceeds, profits, etc. in annuity form from after age 55 until death, after the premium payment contract period expires. 2. Insurance proceeds, profits, etc. shall not be paid in any form other than annuity. 3. Upon death [in cases where a period for which annuity payments are guaranteed from insurance proceeds, profits, etc. is established within the number of years of life expectancy by sex and age according to the statistics approved and promulgated by the head of the national statistical office under Article 18 of the Statistics Act (discarding fractional parts, hereinafter referred to as "life expectancy years" in this Article), and the policyholder dies within that guaranteed period (hereinafter referred to as "guaranteed period" in this Article), it refers to the end of the guaranteed period], the insurance contract and annuity fund shall be extinguished. 4. The policyholder, the insured, and the beneficiary shall be the same person, and early termination shall not be permitted before the first annuity payment commencement date and death. 5. The annual annuity amount received [excluding amounts that have changed due to interest rate fluctuations after the annuity payment commencement and annuity amounts received by deferral] shall not exceed the amount calculated by the following formula: <img src="http://www.law.go.kr/flDownload.do?flSeq=28633674" alt="img28633674" > Amount of Annuity Account Evaluation at the Annuity Payment Commencement Date × 3 ───────────────────── Number of Years of Life Expectancy at the Annuity Payment Commencement Date </img>

In the case of changes falling under any of the following subparagraphs for insurance contracts under subparagraphs 1 and 2 of paragraph ③, and insurance contracts concluded before February 15, 2013 (referring to insurance contracts to which the former Article 25(1) applies pursuant to Article 35 of the Addenda to the Presidential Decree No. 24356 amending the Income Tax Act Enforcement Decree, hereinafter referred to as "former insurance contracts" in this paragraph); Provided, however, that for former insurance contracts, such changes shall be limited to those in subparagraph 3, the date of such change shall be deemed the initial payment date of the relevant insurance contract. Provided, however, that in the case of changes falling under subparagraph 1 or 2 for an insurance contract under subparagraph 2 of paragraph ③, the premium payment period until the date of contract change shall be included in the payment period under subparagraph 2(a) of paragraph ③, and premiums paid before the contract change shall be deemed to meet the requirements of subparagraph 2(b) of paragraph ③ even after the contract change. <Newly added by Act No. 11395, Feb. 15, 2013; Act No. 11865, Jun. 11, 2013; Act No. 12398, Feb. 21, 2014; Act No. 11646, Feb. 3, 2017> 1. When the name of the policyholder is changed (excluding changes due to death). 2. When a protective insurance contract is changed to a savings insurance contract. 3. When the basic premium is increased beyond one time the initially contracted basic premium.

In calculating the premiums under paragraph ①, any dividends or other similar amounts received during the insurance contract period (hereinafter referred to as "dividends, etc." in this paragraph) shall be deducted from the paid premiums, and if the dividends, etc. are used to offset the premiums to be paid, it shall be deemed that the premiums were paid by receiving the dividends, etc. <Amended by Act No. 11646, Feb. 3, 2017>

When changing to a savings insurance contract under paragraph ⑨, if the contract change meets all of the following requirements, the initial payment date of the existing protective insurance contract shall be deemed the initial payment date of the savings insurance contract due to the contract change, notwithstanding the first sentence of the same paragraph. <Newly added by Act No. 17374, Jun. 30, 2025> 1. The existing protective insurance contract shall be a monthly installment insurance contract with the death, illness, injury, or other bodily harm of the insured as the cause for insurance benefit payment, and the insurance benefit shall be 900 million won or less. 2. Premiums shall have been fully paid before the first annuity payment date. 3. The policyholder, the insured, and the beneficiary of the savings insurance contract due to the contract change shall be the same person. 4. The policyholder shall receive the reduced insurance proceeds in installments in annuity form from after age 55.