[Sponsored Report] Kyobo Life Insurance launches new policies
This kind of product is already used in advanced countries such as the United States, where it is known as a performance dividend annuity. With this kind of policy, investments in securities and debt instruments are made even after the pension period has commenced, providing additional profits to the policy holder.
With previous products, investments were made only before the pension period began and once when the pension started paying, the official interest rate was applied. If the official interest rate was lower than the inflation rate, it was hard to maintain the actual value of the pension.
However the new product allows investments throughout a person’s life. If the investment results are good, the fund increases and the policy holder can receive additional pension payments every three years. But regardless of the investment results, once the pension amount increases, the amount is guaranteed and paid.
The new policy offers other benefits. Policy holders can withdraw money in the middle of the policy period, which was impossible with previous products. And unlike previous products, even if the person dies during the pension period the named beneficiary has the right to receive the rest of the savings.
According to the Kyobo Life Insurance executive, “This is a very popular product that has been chosen by over 85 percent of pension holders in the U.S. It was developed to fit the needs of customers who want a flexible plan that will allow them to increase their profits.”
There are four policies to choose from and special plans for elderly clients.