Insurance Premium Waiver Remaining Value Calculator

Estimate the nominal total and discounted present value of future Korean insurance premiums avoided after an accepted premium waiver, including partial-waiver and premium-growth scenarios.

Korea policy-wording boundary

This planner assumes the insurer has accepted a premium waiver. It does not decide the triggering event, covered premium, first waived installment, or renewal treatment. Use the Korean policy wording and the insurer’s written decision.

Policy payment inputs

Use the policy schedule and current premium statement.

Premium per installment

KRW

Actual amount for the next potentially waived installment

Payment frequency

Total scheduled installments

times

A 20-year monthly schedule is usually 240 installments

Installments already paid

times

Include the current completed installment when waiver starts next time

Waiver-covered share

Use 100% only when the full installment is waived

Annual premium increase scenario

Use 0% for level premiums; this is not a guaranteed renewal rate

Annual discount rate

User-selected present-value assumption, not a statutory rate

Remaining premium value

The first waived installment is assumed one payment period from today.

Nominal remaining premiums

₩27,000,000

Future installments before discounting

Present value

₩21,782,170

3% annual discount rate

Remaining schedule

180 payments

15 years

Present-value ratio

80.67%

Share of nominal total

Waived amount per installment

₩150,000

Premium multiplied by covered share

Last projected installment

₩150,000

After the increase scenario

Premium increase impact

₩0

Above a level-premium schedule

Discount effect

₩5,217,830

Nominal total minus present value

Year-by-year value

Years are measured from the valuation date, not the original policy anniversary.

Annual nominal and present value of waived Korean insurance premiums
Relative year	Installments	Annual nominal	Annual present value	Cumulative nominal	Cumulative present value
Year 1	12	₩1,800,000	₩1,771,474	₩1,800,000	₩1,771,474
Year 2	12	₩1,800,000	₩1,719,877	₩3,600,000	₩3,491,351
Year 3	12	₩1,800,000	₩1,669,784	₩5,400,000	₩5,161,135
Year 4	12	₩1,800,000	₩1,621,149	₩7,200,000	₩6,782,284
Year 5	12	₩1,800,000	₩1,573,931	₩9,000,000	₩8,356,216
Year 6	12	₩1,800,000	₩1,528,089	₩10,800,000	₩9,884,305
Year 7	12	₩1,800,000	₩1,483,581	₩12,600,000	₩11,367,886
Year 8	12	₩1,800,000	₩1,440,370	₩14,400,000	₩12,808,256
Year 9	12	₩1,800,000	₩1,398,418	₩16,200,000	₩14,206,674
Year 10	12	₩1,800,000	₩1,357,687	₩18,000,000	₩15,564,361
Year 11	12	₩1,800,000	₩1,318,143	₩19,800,000	₩16,882,504
Year 12	12	₩1,800,000	₩1,279,750	₩21,600,000	₩18,162,254
Year 13	12	₩1,800,000	₩1,242,476	₩23,400,000	₩19,404,730
Year 14	12	₩1,800,000	₩1,206,287	₩25,200,000	₩20,611,017
Year 15	12	₩1,800,000	₩1,171,153	₩27,000,000	₩21,782,170

Do not treat this as an approved claim amount.

Policy wording may exclude savings premiums or riders, start the waiver with the next installment, or change renewal treatment. Confirm every input with the insurer.

Related calculators

What is the remaining value of an insurance premium waiver?

A premium waiver can remove some or all future premium installments after the triggering event in a Korean insurance policy has been accepted. The remaining value is the stream of installments that the policyholder no longer has to pay while the covered policy benefits continue under the wording. It is an avoided future expense, not a lump-sum claim payment, surrender value, diagnosis benefit, or premium-support cash benefit.

A simple multiplication of the monthly premium by the months left can miss important details. A policy may be paid monthly, quarterly, semiannually, or annually. Only the protection portion may be waived, some riders may be excluded, and a renewable premium may change. This calculator models each remaining installment, then reports both its undiscounted nominal total and its present value under a user-selected discount rate.

Useful situations

Organising the financial effect after an insurer issues a waiver decision
Separating the premium actually waived from savings premiums or excluded riders
Comparing several Korean policies with one present-value assumption
Checking that a waiver benefit is included in a keep-versus-surrender review
Stress-testing a renewable premium with a clearly labelled increase scenario

Korea-specific policy and legal boundary for 2026

The Korean Commercial Act currently recorded as law ID 001702, MST 272919, effective 23 July 2026, defines an insurance contract in Article 638 through the agreed premium and the insurer’s promised benefit upon an uncertain event. Article 638-3 requires the insurer to deliver the policy wording and explain important terms when the contract is made. The Financial Consumer Protection Act, law ID 013704, MST 277247, effective 2 January 2026, requires an understandable explanation of important matters for protection products in Article 19, including premiums, benefit restrictions, claim procedures, and the scope of risk protection.

These provisions do not create one statutory waiver trigger, covered-premium percentage, start date, or present-value discount rate for every insurance product. The controlling inputs must come from the policy wording, endorsements, premium statement, and the insurer’s written handling decision. This calculator therefore assumes that a waiver has already been accepted and never diagnoses eligibility or predicts an insurer’s decision.

Trigger

A diagnosis, procedure, or disability percentage alone is not enough for this tool to decide coverage. Confirm the insurer’s formal decision first.

Covered premium

A waiver may cover only protection premiums, the main contract, or selected riders. Enter the confirmed amount or share.

First installment

If the wording says the waiver begins with the next installment, count the current completed installment as already paid.

Inputs and source documents

Inputs for the Korean insurance premium waiver value calculator
Input	Meaning	Best source	Default example
Premium per installment	Actual amount for one payment period	Recent statement or policy schedule	KRW 150,000
Payment frequency	Monthly, quarterly, semiannual, or annual	Premium-payment method	12 per year
Total and paid counts	All scheduled and completed installments	Payment term and transaction history	240 and 60
Waiver-covered share	Part of each installment actually waived	Policy wording and insurer decision	100%
Increase and discount rates	Scenario rates for future premiums and present value	Renewal notice and personal planning basis	0% and 3%

Enter installments, not years

A 20-year monthly payment term is usually 240 installments, not 20. If five full years have been paid, the completed count is usually 60. Use the insurer’s processed payment history instead of elapsed calendar months when a policy has advance payments, missed payments, or a payment deferral.

Nominal and present-value formulas

Let P be the premium per installment, w the waiver-covered percentage, f the number of payments per year, and n the remaining payment count. Let G be the annual premium-increase scenario and D the annual discount rate. The first waived installment is assumed to fall one payment period after the valuation date.

Schedule basics

n = total installments − installments paid

covered premium = P × w ÷ 100

remaining years = n ÷ f

Periodic effective rates

growth = (1 + G ÷ 100)^(1 ÷ f) − 1

discount = (1 + D ÷ 100)^(1 ÷ f) − 1

Installment k

projected premium(k) = covered premium × (1 + growth)^k

present value(k) = projected premium(k) ÷ (1 + discount)^(k + 1)

nominal total = sum of all projected premiums

present value = sum of all discounted premiums

The calculator converts annual effective rates to the selected payment frequency. For example, a 3% annual effective discount rate becomes approximately 0.246627% per month, rather than a simple 0.25%. Compounding twelve of those monthly rates reproduces exactly 3% for the year. If both increase and discount rates are zero, nominal value and present value are equal.

How to use the calculator

Confirm that the insurer accepted the waiver and identify the first waived installment.
Enter the actual premium per installment and select the matching payment frequency.
Enter total scheduled installments and the number already processed as paid.
Use 100% only for a full waiver; otherwise enter the confirmed covered share.
Use a 0% increase for level premiums and treat any positive increase as a scenario, not a quote.
Compare the nominal total for future household cash flow with present value for a today-based comparison.

Avoid double-adjusting a partial waiver

If the insurer confirms that KRW 120,000 of a KRW 150,000 installment is waived, either enter KRW 120,000 as the premium with a 100% covered share, or enter KRW 150,000 with an 80% share. Do not enter KRW 120,000 and 80% together, because that would reduce the value twice.

Three worked examples

Worked examples for nominal and present value of waived premiums
Case	Inputs	Nominal total	Present value	Additional result
Level monthly premium	KRW 150,000 × 180, 100% waiver, 0% increase, 3% discount	KRW 27,000,000	KRW 21,782,170	Discount effect KRW 5,217,830
Partial waiver	KRW 100,000 × 180, 80% waiver, 0% increase, 0% discount	KRW 14,400,000	KRW 14,400,000	KRW 80,000 per installment
Increase scenario	KRW 150,000 × 24, 100% waiver, 5% increase, 3% discount	KRW 3,773,818	KRW 3,658,167	Last premium KRW 164,704

In the first example, a 20-year monthly policy has 180 payments left after five years. The undiscounted avoided outflow is KRW 27 million, while the present value at 3% is about KRW 21.78 million. The second example shows that a zero discount rate makes nominal and present values equal. The third example demonstrates that a premium-increase scenario can raise later installments and the nominal total, but it remains only a user assumption unless the insurer has issued an actual renewal premium.

How to interpret the result

Nominal value is avoided future spending

The nominal total is useful for a future household premium budget. It does not mean that the insurer owes that amount in cash today.

Present value depends on the assumption

A higher discount rate reduces the today-based value of distant installments. Compare 0%, 3%, and 5% rather than treating the default as law or promised investment return.

The covered share controls accuracy

If only KRW 120,000 of a KRW 150,000 installment is waived, the share is 80%. Assuming 100% without confirmation overstates the benefit.

Policy decisions need a wider comparison

A keep-or-surrender decision also needs coverage needs, surrender value, replacement insurability, renewal wording, and tax treatment. This result alone does not recommend either action.

Practical review checklist and limitations

Confirm each item

The insurer formally accepted the premium-waiver trigger
The waiver begins now or with the next installment
The main policy and each rider included in the waiver
The protection premium and savings premium amounts
Renewal continuation, termination, or premium changes after waiver
Any separate premium-support cash benefit that must not be counted twice
Advance, deferred, missed, or refunded installments in the payment history
Any premium line that will continue to be debited after the waiver

What the calculator does not model

The tool does not assess medical records, diagnosis codes, disability schedules, disclosure duties, waiting periods, or benefit exclusions. It also does not combine surrender value, declared interest, assumed pricing interest, tax credits, inflation, diagnosis benefits, or replacement-policy cost. Rates are planning inputs, not statutory figures, insurer forecasts, or guaranteed returns.

Frequently asked questions

Does this calculator decide whether I qualify for a waiver?

No. Covered diagnoses, disability thresholds, procedures, waiting periods, and evidence depend on the policy and insurer review. This tool starts only after you supply the accepted schedule and covered premium.

Is the 3% default discount rate required by Korean law?

No. It is an editable scenario that makes the time-value difference visible. It is not a statutory interest rate, insurer declared rate, pricing rate, or promised return.

What should I enter when only the protection premium is waived?

The clearest method is to enter the insurer-confirmed protection premium as the installment amount and keep the covered share at 100%. Alternatively, enter the full premium and its confirmed covered percentage. Use one method, not both.

Is the current month included?

Check the decision letter. If the waiver starts with the next installment, include the current completed installment in the paid count. This calculator does not decide whether an already debited premium will be refunded.

How should I set a renewable-premium increase?

Use 0% as a baseline when the insurer has not issued a future renewal premium, then test clearly labelled scenarios separately. Past increases do not guarantee future changes, and some wording may stop renewal or handle waived riders differently.

Why is the result zero when the payment term is complete?

The model values only future installments that would otherwise remain payable. When total and paid installment counts are equal, no future premium obligation remains. Past payments and existing insurance protection are not converted into a refund.

Official sources and update date

The National Law Information Center OPEN API was checked on 30 July 2026. The Commercial Act source was law ID 001702, MST 272919, effective 23 July 2026. The Financial Consumer Protection Act source was law ID 013704, MST 277247, effective 2 January 2026. No statutory premium, waiver percentage, increase rate, or discount rate is embedded in the calculation.

Recalculate with the confirmed policy figures

Accuracy depends most on the premium actually covered and the exact remaining installment count. Save both nominal and present values with the insurer decision so the assumptions remain traceable during household planning or a later policy review.