Samsung Life Insurance announced on the 10th that it will start selling the 'Samsung Balance Whole Life Insurance' (non-dividend, guaranteed cost type) from the 11th, which can be used not only for death coverage, the inherent function of whole life insurance, but also as retirement funds and emergency funds.
Samsung Balance Whole Life Insurance is a whole life insurance product with various functions designed to keep pace with overall social structural changes such as the increase in single-person households and aging population. Customers can choose between Type 1 (minimum surrender value guaranteed) and Type 2 (minimum surrender value not guaranteed). Different interest rates are applied when calculating premiums for each type. For Type 1, an annual compound interest rate of 2.75% is applied for up to 10 years, and 1.6% for over 10 years. For Type 2, an annual compound interest rate of 3.0% is applied.
The death benefit of this product increases by 2% annually for up to 10 years after 10 years of enrollment, increasing the death benefit up to 120% of the insured amount. A death benefit increase service at specific points in time is also additionally designed, making it an optimized product for death coverage needed in advanced age. The increased insurance amount due to the increase service is additionally increased by 10%, 20%, and 30% of the total agreed premiums at 10, 20, and 30 years from the contract date, respectively, if the policy is maintained normally.
When selecting Type 1 (minimum surrender value guaranteed), a newly established 'Double Pension Conversion Rider' allows the death benefit to be converted into an annuity, guaranteeing a minimum total amount received of at least twice the total premiums paid regardless of the announced interest rate or the timing of death. Conversion is possible after 20 years from the main insurance subscription if the policyholder and insured are the same as the pre-conversion contract and the insured is between 45 and 80 years old, and the actual annuity conversion must be applied for at least 3 years in advance.
Samsung Balance Whole Life Insurance also features the provision of the same minimum guaranteed surrender value rate regardless of the insured amount, age, or gender for Type 1 minimum surrender value guaranteed.
The eligible age for subscription is from 15 to 60 years old, and the payment period can be selected from 5, 7, 10, 15, or 20 years. For a 40-year-old male subscribing to 100 million KRW with a 20-year payment period, the monthly premium is approximately 432,000 KRW.
A Samsung Life Insurance official said, “This product is the best insurance for balancing fund utilization throughout the life cycle, as it can be used diversely according to the customer's situation, in addition to the inherent death coverage function of whole life insurance.” He added, “We hope it will be an opportunity to receive death coverage for the family during the income-earning period and to receive a pension for oneself in old age according to the life cycle.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
