[Sponsored Report] Hanwha Life launches new annuity with higher returns

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[Sponsored Report] Hanwha Life launches new annuity with higher returns


Last month, Hanwha Life released 100 Plus, a product that guarantees returns up to 130 percent of long-term clients’ initial investment. [HANWHA LIFE]

On April 26, Hanwha Life announced the launch of “Hanwha Life 100 Plus Variable Annuity,” a contract that guarantees long-term holders a return of up to 130 percent of their total investment.

Unlike other insurance companies, whose variable annuities only guarantee reserves upon reaching target rates of return, 100 Plus guarantees clients between 106.7 and 130 percent of total amount invested.

The guaranteed rate of return increases the longer clients hold on to their annuities, with those who do so for over 30 years receiving maximum benefits.

Despite being an annuity, 100 Plus also offers premium discounts. The size of the discounts rises commensurately with the size of the purchase payment. A 1.5 percent discount is awarded on contracts with monthly purchase payments of over 300,000 won ($253). A discount of 2.5 percent and an additional 50,000 won are available for annuities with monthly purchase payments of over 3 million won. The rates apply to however much exceeds a customer’s contracted purchase payment amount.

100 Plus is one of few variable annuities that has a special contract under which clients diagnosed with critical illnesses (CI) are exempt from their monthly purchase payments.

Should contract holders be diagnosed with either cancer, cerebral hemorrhage, acute myocardial infarction, late stage kidney failure, or lung or liver disease, Hanwha Life will step in and make the payments in their place. The same applies to those who acquire a disability rating of over 80 percent and are declared in need of long term care (LTC).

Under another special contract, these same clients can also choose to use their payout to cover nursing and medical expenses.

The company will double its payout for up to 10 years once a holder is diagnosed with a CI or placed in LTC. Clients can choose to add one or both options before they make their initial purchase payment.

While the special contract does not require an additional fee, opting in will reduce the payout to an amount lower than that of a regular annuity in the event that neither CI nor LTC occurs.

According to Choi Sung-kyun, a manager of the product development team at Hanwha Life, 100 Plus is profitable, secure and innovative in that it allows clients to double their payouts to cover nursing and medical expenses.

100 Plus is available for purchase for clients aged between 15 and 70, after which they can schedule their annuity commencement date to occur between the ages of 45 and 80. Monthly purchase payment plans start at 100,000 won.

BY PARK HYE-MI [park.hyemi@joongang.co.kr]
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