The Financial Supervisory Commission (FSC), in conjunction with Taiwan’s annual Children’s Day on April 4, has urged parents to review and address the insurance protection gap their children face.
The FSC pointed out that the Insurance Act was amended in June 2020, under which, if the insured is under the age of 15 and has life insurance, accident insurance or travel insurance, a maximum of 615 000 NT$ ($21,500) can be paid. for funeral expenses, on all the different insurance policies, in the event of the unfortunate death of the child.
The FSC’s Office of Insurance, however, found in November last year that not all insurers had changed the terms of their insurance policies to comply with the revised insurance law.
Accordingly, he ordered that effective December 1, 2021, all property and life insurance companies allow payment of funeral expenses from the proceeds of life insurance, accident insurance and travel insurance when the insured is a child under 15 years of age.
In addition, the FSC stated that if a children’s insurance policy does not provide for the payment of funeral expenses (i.e. a policy that only reimburses premiums in the event of death), it cannot be used by insurance companies as their main marketing product for children under 15 years of age. It can only be sold as a complementary contract. The regulator said that currently only disability insurance policies do not provide for payment of funeral expenses from insurance proceeds.
The FSC says there are other types of insurance policies parents can purchase, such as endowment policies to save for their children’s education and health insurance to cover hospitalization and medical expenses. .