[Sponsored Report] Securing a monthly income after death
A wage style whole life insurance that secures the monthly wage of the head of the household has been introduced by Kyobo Life Insurance. In May the company launched Kyobo Premier Variable Universal Whole Life Insurance which provides insurance on death as well as a monthly living cost to the family in May.
This product can provide more insurance according to the result of management of the fund. Unlike other whole life insurance products, where death insurance is paid at once, the surviving family can receive a monthly living payment.
On top of the base insurance (contract amount) it pays between 1 percent and 2 percent of the contract amount on a monthly basis until the retirement of the family head, so even if they die in an accident the family can maintain a certain level of financial security. Clients can choose the retirement age from 55, 60 or 65, according to the situation of the client.
For example, if clients choose the retirement age as 65 (contract amount 300 million won) and die at 45, not only will the family receive the base insurance of 300 million won but they will also receive 3 million won every month for 20 years, which adds up to 720 million won. Meaning that altogether the customer would recieve 1.02 billion won. Monthly payment is paid for at least 60 months.
This is a good product for families that require a certain amount of money for regular payments for living costs and education costs in case the head of the family passes away.
Team head of product development at Kyobo Life Insurance explained, “We have developed this product focusing on securing the monthly income of the family head so the remaining family can maintain a stable life. This is a good product for specialists that have a high need of living cost in case the head passes away or high income employees.”
While the head of the family is still working, it is a term insurance and after retirement, clients can utilize it as living cost fund by changing the monthly saving into annuity. Another merit of the product is that the whole family, including the policy holder, spouse and up to two children can become the beneficiary. There is also a universal function so utilizing the fund is more convenient. When additional funds are available they can be deposited in the fund and withdrawn in case emergencies, even in the middle of the period.
According to the initiation fee clients can receive a discount from 2.5 percent to up to 7 percent.
There are three funds. Equity funds that invest more than 60 percent in the local stock market, an index equity fund or a bond fund. Customers must be aged between 20 and 60 and the minimum deposit amount is 100 million won.
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