DGB Life Launches 'High Five Lifetime Secure Variable Savings Insurance' "Enhanced Savings + Death Coverage"

[Asia Economy Reporter Changhwan Lee] DGB Life announced on the 4th that it has launched the 'HighFive Lifetime Secure Variable Savings Insurance,' which guarantees a higher death benefit over the long term compared to whole life insurance and is invested and managed through a target date fund (TDF).

DGB Life explained that this product was launched considering that existing whole life insurance often causes consumer dissatisfaction due to low initial surrender values during the premium payment period and insufficient reflection of inflation rates in the insurance benefits.

The Lifetime Secure Variable Savings Insurance guarantees a minimum death benefit with an annual interest rate of 5% on paid premiums, providing a higher death benefit over the long term compared to whole life insurance.

In cases where the contract is canceled during the premium payment period due to unavoidable circumstances, the surrender value is also excellent. The company emphasized that assuming the same premium payment, for a 50-year-old male with a 10-year payment period, the expected death benefit at the estimated death age (80 years) of this product is about 1.5 times that of the company's whole life insurance.

Additionally, due to the nature of savings insurance, it is easier to subscribe compared to whole life insurance, and if the need for a death benefit disappears, it can be converted into an annuity. This makes it suitable for middle-aged and older customers who need funds for various purposes such as children's wedding expenses, inheritance funds, and medical expenses.

The 'Lifetime Secure Variable Savings Insurance' invests in a diversified range of global assets over the long term through TDFs managed by Shinhan Asset Management.

A TDF is an asset allocation fund that automatically adjusts the proportion of risky and safe assets based on the investor's retirement target date.

For example, at the beginning of the subscription, the proportion of risky assets such as stocks is high, and later, the proportion of safe assets such as bonds increases, providing a global asset allocation function tailored to the customer's life cycle according to pre-established criteria.

Huh Won, Head of CPC Strategy Division at DGB Life, said, “The newly introduced 'Lifetime Secure Variable Savings Insurance' can replace existing low-surrender whole life insurance products and meet the diverse needs of middle-aged and older consumers.” He added, “Based on the strength in variable insurance proven by ranking first in variable insurance returns in the life insurance industry last year, DGB Life plans to introduce various products that satisfy customers.”